JACKSONVILLE, Fla. – A judge in Missouri temporarily blocked the Biden Administration’s student loan forgiveness plan for a second time, just one day after a federal judge green-lit the program to move forward.
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Americans owe $1.75 trillion in federal and private student loan debt, according to Lending Tree.
“This is no small number. Over a quarter of the population currently has outstanding, student loans, or someone close to them such as a child or grandchild,” Billy J. Hensley, President of the National Endowment for Financial Education, said.
Hensley said he has two main concerns regarding student loan debt.
“The first is, are people maximizing their retirement savings? and then the emergency savings,” Hensley said. “We’ve all been in that boat where the water heater breaks. Or you have the flat tire and when we don’t have the budget to put a little bit aside for a rainy day.”
On Thursday, a federal judge in Missouri issued a temporary block on the Biden Administration’s student debt relief plan.
The plan aims to give financial relief to more than 30 million Americans but has been on hold since September.
Federal judges blocked it arguing Biden overstepped his authority. But a Georgia federal judge ended that pause Wednesday before a second block went into effect.
Hensley believes the handling of student loans will play a pivotal role in shaping the outcome of the 2024 presidential election.
“Sixty-four percent actually of borrowers say that the topic of student loans should be a major platform consideration of the candidates,” Hensley said. “This is tens of millions of people, of voters. In no age or political demographic does that fall under 50 percent and this holds regardless of political affiliation.”
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With less than a month left until election day, the countdown continues.