Debt relief for some student loan borrowers
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The Biden administration is canceling debt for thousands of people with federal student loans from for-profit schools and students who were defrauded. Plus, despite forecasts of strong economic growth for the U.S. economy, Fed Chair Jerome Powell is taking a more cautious approach. And, the state of our bifurcated economy, where some households have managed to save more during the pandemic and others have had to borrow more and increase debt.
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Thousands of students defrauded by for-profit schools will have their federal loans fully erased
Marketplace's Nova Safo has more.
Fed policymakers agree we're in for a sharp spike in economic growth. But Chair Jerome Powell is still cautious in his messaging.
"What he stressed was that while the economy is growing faster than anybody thought possible this year, there are still chunks that are not functioning at all, particularly leisure and hospitality," Christopher Low, chief economist at FHN Financial, said of Powell. Low said that Powell also stressed very high unemployment rates continue for communities of color. The Fed is taking inequity "quite seriously," Low said, and these rates indicate that the economy is nowhere near full employment.
Who's taking on debt for what reasons, and why paying it down is good for your financial and mental health.