Biden Administration Cancels $7.7 Billion
in Student Debt for 160,000 Borrowers
On May 21, 2024, President Joe Biden announced
that an additional 160,000 Americans would get
their student debt—a collective $7.7 billion—canceled.
With this move, the Biden-Harris administration
has offered a total of $167 billion in
loan forgiveness to 4.75 million Americans.
The newest debt relief applies to borrowers enrolled
in Public Service Loan Forgiveness (or PSLF) plans,
including teachers, nurses and law enforcement
officials. It also applies to some borrowers enrolled in
the Saving on a Valuable Education (or SAVE) repayment
plan, an income-driven repayment program that
bases a borrower’s monthly payment on their income
to lower their financial burden and through administrative
adjustments to other income-driven repayment
plans. Eligible borrowers should have already
received emails about their loan discharges. The debt
cancellation will be processed in the next few weeks.
Student debt affects about 43 million Americans,
with a combined $1.7 trillion of debt. Some borrowers
and their advocates say it has harmed
their ability to save for a home or achieve financial
milestones.
What’s Next?
The Biden administration plans to provide additional
broad-based loan forgiveness through
the Higher Education Act. The new plan
could relieve about 30 million borrowers by
erasing some or all of their student loans.
While this debt forgiveness impacts many people
with student loans, concerned borrowers can contact
their loan servicer to confirm whether they qualify for
student debt relief. Borrowers are also encouraged
to visit StudentAid.gov for the latest information.
Most College Graduates Are
Confident They’ll Get a Job But Are
Concerned About Job Security
As another wave of graduates enters the workforce,
it can be helpful to understand what motivates or
concerns your newest colleagues as you collaborate
or interact with them. So, what do you know
about the class of 2024? According to Monster’s
2024 State of the Graduate Report, 82% of graduates
are confident they’ll receive a job offer shortly
after graduating, a 6% dip from 2023. Although
most graduates think they’ll get a job, 77% are concerned
about job security while they look for a new
role. Since U.S. employers cut more than 90,000
jobs in March alone, layoffs are increasingly a concern
for workers regardless of experience level.
It’s also important to note that graduates are confident
they’ll find a job, but it may not be the one they want.
Half (52%) of graduates believe they won’t find a job at
their preferred company, and almost two-thirds (62%)
believe employers have more leverage in the current
job market. Many survey respondents said they plan
to settle on some conditions, such as a lower salary,
working on-site or a long commute, to secure a job.
Although graduates may believe employers have the
upper hand in the current market, they are unwilling
to compromise on some core requirements during
their job hunts: flexibility, mental health and career
development. Many of today’s workers are interested
in learning and development opportunities,
and the class of 2024 is no different. Most graduates
are interested in learning or upskilling programs.
Among upskilling options, graduates are interested in
on-the-job training, industry-related certificate courses,
mentorship programs, job shadowing, job rotations
and training repayment agreement provisions.
The class of 2024 is eager to learn in an environment
and culture that supports long-term career
growth and opportunities to climb the ranks.
Notably, the class of 2024 also strongly values competitive
benefits and flexibility, not wanting to work at
a fully remote or in-person company. They are mainly
interested in a hybrid work model. Additionally, , given
that 2024 is an election year, it’s not surprising that
recent graduates do not want to work for a company
with opposing political views.
Hiring for entry-level positions is expected to remain
steady during the graduation season, so you’ll likely
cross paths with the newest graduates. Keep these
report findings in mind as you collaborate or interact
with your newest colleagues. Recent graduates often
bring in new ideas and skills, so consider how you can
best listen, understand and fuel innovation. Talk to
your manager if you have any workplace concerns.
