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student loans

President Biden To Forgive $7.4 Billion In Student Loan Debt For More Than 270,000 Borrowers

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President Biden’s administration announced last week that it will be using existing student loan forgiveness programs to cancel more student loan debt. They’re planning on forgiving $7.2 billion for around 277,000 borrowers, according to reports.

The Department of Education has seemingly made it easier for groups like public sector workers to qualify for loan forgiveness. The administration also launched a repayment plan to make it easier for low-income borrowers to pay back their loans. 

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The Biden administration has authorized, in total, the $153 billion in student loan debt cancellation for around 4.3 million people; more than 9% of all outstanding federal student loan debt. 

The Biden administration has eagerly been showing how much student loan debt they’re canceling especially due to the election in November. Around $3.6 billion of student loan debt relief will be delivered to individuals enrolled in the SAVE plan. 

“Republicans in 18 states want to prevent their own constituents from benefiting from the SAVE plan. They want to end SAVE, make their constituents’ payments go up and keep them under mountains of loan debt with no end in sight,” said White House press secretary Karine Jean-Pierre.

The SAVE plan launched last year and around 8 million borrowers have enrolled with about 360,000 people getting their remaining debt canceled.

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Biden has previously attempted to implement a student loan forgiveness program in 2022, however, it was rejected by the Supreme Court before it could actually deliver any debt relief. 

Biden has, however, canceled more student loan debt than any other president, and he’s mainly been utilizing existing programs. The administration has used the existing programs but made it easier to access for more US citizens. 

“Since the fall, the Biden administration has been working on set of new proposals, based on a different legal authority, to deliver relief to certain groups of borrowers.
For example, those whose student loan balances are bigger than what they initially borrowed could see their accumulated interest wiped way,” wrote Katie Lobosco for CNN. 

“Those proposals have yet to be finalized, but some could go into effect as soon as this fall, according to administration officials.”

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President Biden’s New Affordable Housing Plan 

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The housing market in the US has been hitting historic lows within the past few years. Sales are slow, current homeowners are unable to move because they don’t want to lose the record low mortgage rates they got during the pandemic, and first-time homebuyers are finding starter homes to be less and less affordable. 

In a recent survey from Redfin, 53% of respondents stated that the housing affordability issues in the US will impact who they vote for in the next presidential election. The White House is aware of these potential impacts on the upcoming election, and President Biden is hoping to combat these issues with a new proposed housing plan. 

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According to reports from Forbes, Biden’s plan to make housing more affordable will involve rent relief, tax credits for homebuyers and sellers, and plans to develop 2 million homes as a means of addressing the housing shortage. 

Freddie Mac Housing Experts have estimated that the US is short about 4 million homes, so by adding 2 million the nation, home pricing and rent growth would slow down and affordability will improve. 

Mortgage rates have been fluctuating constantly since the pandemic especially. During the initial months of quarantining mortgage rates hit a record low, which increased demand and pricing. In 2022 and 2023, however, mortgage rates increased again, so existing homeowners who were able to lower their rates are now reluctant to sell. 

Biden’s new housing plan places a focus on first time homebuyers looking for their starter home, and those looking to move out of what once was their starter home. The proposed plan includes a one-year tax credit of up to $10,000, according to Forbes. This credit will ideally encourage homeowners to sell their first home to then free up that space for other first-time homebuyers. 

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It’s also been reported that another proposal from Biden would be a mortgage relief credit for first-time homebuyers in the middle-class. The credit would be up to $5,000 for two years, and would help make homeownership more accessible by reducing the buyer’s mortgage rate by over 1.5% points for two years, according to Daryl Fairweather, the chief economist at Redfin. 

“This policy and Biden’s plan to provide down payment assistance for first-generation homebuyers would increase demand for homes. In places where the supply of homes has been increasing, such as Texas, there is enough capacity to meet increased demand. However, in places with limited supply, these credits would mostly lead to buyers competing for a limited number of existing homes and bidding up home prices,” Fairweather wrote for Forbes. 

Marshall Park, the Redfin market manager in Washington D.C., recalled how homebuyer tax credits, like the one being proposed from Biden, motivated more homebuyer’s to buy during Obama’s first year as president in 2009.

“Homebuyers who qualified definitely took advantage, and I recall a surge in demand and motivation to purchase while the tax credit was available,” said Park. “I do think that a homebuyer tax credit might bring more buyers into today’s market, but the main issue with the market right now is the lack of inventory,” Park stated.

 The biggest solution to helping the housing market will be the increase in supply and development of 2 million homes that Biden is planning on implementing. The presidential and congressional elections this year, however, will impact how much of that plan actually gets done.

tiktok

America’s Still Moving To Ban TikTok 

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Last week, a key house committee introduced and approved a bill that is targeting the social media platform TikTok. The full House is set to vote this week potentially, and the White House has stated that President Joe Biden is also prepared to sign it, according to reports from CNN.

The bill itself, if fully approved, would give TikTok about five months to separate from its Chinese parent company ByteDance. If they refuse, app stores in the US will be prohibited from hosting the app on their platforms. 

Besides TikTok, the bill will also restrict other apps that are allegedly controlled by foreign adversaries like China, Iran, Russia, or North Korea. The bill would also set up a process for Biden, and future presidents to identify apps that should be banned under the specific legislation. 

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Any app store that violates said legislation could be fined based on the number of users of the banned apps; specifically a fine of $5,000 per user of the banned app. For example, if the bill passes and Apple or Google decide to keep TikTok on its app stores, they could face fines up to $850 billion. 

One of the bill’s lead cosponsors, Wisconsin Republican Rep. Mike Gallagher, says “the bill does not ban TikTok; it simply offers TikTok the choice to be divested.”

TikTok has responded to this recent bill’s momentum, stating that it’s an attack on the First Amendment rights of its users, according to CNN. It’s even launched a call-to-action campaign within the app itself, urging users to call their states representatives in Washington to oppose the bill. Multiple congressional offices have already stated that they’ve been “flooded” with calls. 

In a statement, TikTok said: 

“The government is attempting to strip 170 million Americans of their Constitutional right to free expression. This will damage millions of businesses, deny artists an audience, and destroy the livelihoods of countless creators across the country.”

Lawmakers have long been alleging that TikTok poses a national security threat because the government in China can use its intelligence laws against ByteDance to force them to hand over the data of US TikTok users. If done, that information can then be potentially used to identify intelligence targets or enable disinformation or propaganda campaigns. 

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The US government has not yet presented any evidence that China has accessed user data from TikTok, and according to reports, cybersecurity experts have stated that it still remains a hypothetical scenario. 

During the Trump administration, there was a major effort to ban TikTok, however, others debated whether or not the president had the power to ban a foreign-owned social media app. With this new congressional legislation, the president would have clear, new authorities to do that. 

With the speed in which House leaders are promising a floor vote, it can be assumed that they’re confident in the bill’s clearance. There is still not a lot of information regarding if the bill will have a chance in the Senate. 

Gallagher stated that the bill will likely fall to the Senate Commerce Committee. Senator Maria Cantwell, who chairs the Commerce Committee, told CNN that she will be talking to her “Senate and House colleagues to try to find a path forward that is constitutional and protects civil liberties.”

Jameel Jaffer, executive director of the Knight First Amendment Institute at Columbia University, said that “passing a nationwide privacy law regulating how all companies, not just TikTok, handle Americans’ data would lead to the same result without raising First Amendment concerns.” 

“By that precedent, it would be unconstitutional for the government to ban TikTok even if it were blatantly a direct mouthpiece for the Chinese government,” Jaffer said.

“If you give the government the power to restrict Americans’ access to propaganda, then you’ve given the government the power to restrict Americans’ access to anything the government deems to be propaganda.”

earthquake

Over 2,700 Killed after Two Major Earthquakes Rock Syria and Turkey

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Over 2,700 people were killed, and thousands more were injured when two major earthquakes struck Turkey and Syria on Monday. Hundreds of buildings collapsed and buried residents under their wreckage.

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Walmart Shooter Purchased Gun Just Hours Before Killing, Authorities Say

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The gunman who shot and killed six co-workers at a Walmart in Chesapeake, VA, earlier this week legally purchased the gun hours before the massacre. He also left what he titled a “death note” on his phone detailing grievances with various people in his life.

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Brittney Griner’s Nine Year Sentence Upheld by Russian Court

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Brittney Griner, an American basketball player currently serving a nine-year sentence in Russia for drug charges, has had her appeal against the sentence dismissed by a Russian court.

The two-time Olympic gold medalist was arrested on Feb. 17 at a Moscow airport when cannabis oil vape cartridges carrying less than a gram of hashish oil were discovered in her luggage. She was convicted in August for “drug smuggling” and was sentenced to nine years in prison.

Officials believe that the lengthy sentence was politically motivated by the collapse of U.S. and Russian relations after Russia’s invasion of Ukraine. The White House called the legal proceedings a “sham.” Elizabeth Rood, a high-ranking U.S. diplomat who was present at the hearing, also called the penalty “excessive and disproportionate.”

Her case has been referred to the State Department’s office under the label of hostage affairs.

Griner was legally prescribed the oil for pain management by her doctor in the U.S. She apologized for possessing it in her appeal, admitting she had packed the cartridges by accident while rushing to pack her luggage. During the U.S. basketball offseason, she had wanted to travel to Russia to play club basketball.

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In July, shortly before pleading guilty, Griner had written to President Joe Biden expressing her distress and calling for help from the government.

“I sit here in a Russian prison, alone with my thoughts and without the protection of my wife, family, friends, Olympic jersey, or any accomplishments. I’m terrified I might be here forever. I realize you are dealing with so much, but please don’t forget about me and the other American detainees. Please do all you can to bring us home.”

The state prosecutor arguing against her case called the continuing sentence “fair.” Alexander Boykov, the athlete’s lawyer, stated that “no judge, hand on heart, will honestly say that Griner’s nine-year sentence is in line with Russian criminal law.”

“Brittney is [a] very strong person and has a champion’s character. However, she of course has her highs and lows as she is severely stressed being separated from her loved ones for over eight months.”

Russia and the U.S. have discussed the possibility of a prisoner exchange between the two countries. There is speculation that the White House may offer up Russian arms dealer Viktor Bout, also known as the “merchant of death.”

U.S. national security adviser Jake Sullivan issued a statement saying Griner was being “wrongfully detained under intolerable circumstances” and reaffirmed that President Biden had demanded her immediate release.

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“President Biden has been very clear that Brittney should be released immediately. In recent weeks, the Biden-Harris Administration has continued to engage with Russia through every available channel and make every effort to bring home Brittney as well as to support and advocate for other Americans detained in Russia, including fellow wrongful detainee Paul Whelan. The President has demonstrated that he is willing to go to extraordinary lengths and make tough decisions to bring Americans home, as his Administration has done successfully from countries around the world. The Administration remains in regular touch with representatives of the families, and we continue to admire their courage in the face of these unimaginable circumstances.”

The sports star spoke to the appeals court remotely from a detention center located in a town near Moscow.

“I really hope that the court will adjust this sentence because it has been very very stressful and very traumatic…I’ve been here almost eight months and people with more severe crimes have been given less than what I was given.”

Though she is still imprisoned, she is grateful for the people working toward her release.

“Thank you everyone for fighting so hard to get me home. All the support and love are definitely helping me.”

loan

President Biden Announces New Student-Loan Forgiveness Plan To Help Millions

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President Biden’s new student-loan plan will help relieve millions of Americans from debt. 

According to an article from The Wall Street Journal, the President’s new plan will eliminate up to $10,000 in federal-loan debt from those whose annual incomes are under $125,000 or for couples who earn less than $250,000 combined. 

“In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023,” President Biden tweeted.

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Some of the borrowers are also going to be eligible for total forgiveness up to $20,000 if they additionally received Pell Grants. These are a form of federal financial aid that would be awarded to students who live in low-income households.

“The plan is expected to benefit the majority of the more than 43 million people in the U.S. who hold a total of $1.6 trillion in student-loan debt” 

President Biden also announced that he will be extending the pandemic-era student-loan pause payments and interests throughout the end of the year. The Trump administration first gave Americans the option to suspend their loans and soon after, Congress made it automatic. 

The current pause was set to end on Aug. 31, but with the President’s recent plan, it was the closest the administration has come to hitting the end of the freeze extension.

This pause has been instated since March 2020 and has been continuously extended since. 

The Federal Reserve Bank of New York believes that this continuous pause helped Americans save nearly $200 billion in payments. 

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People who are eligible for this new plan don’t need to take action right away in order to receive the debt relief. 

“It’s a very complicated process and it’s going to take months to effectuate,” said Scott Buchanan, director of Student Loan Servicing Alliance. “Don’t do anything until you see something happen to your account.” 

The new plan was in fact narrower than what he initially proposed when he was campaigning during the 2020 election. 

“He’ll get a lot of credit for following through on something that he was committed to,” said Celinda Lake, a Democratic pollster.

Many people who work in the public service were also welcomed to some relief when there were temporary changes made to the U.S. Public Service Loan Forgiveness Program. Due to the changes, it helped more than 113,000 people receive student debt relief and have a total of $6.8 billion in forgiveness. 

US Stimulus Checks

President Biden To Meet With GOP Senators To Discuss Covid-19 Relief

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GOP Senators are meeting with President Biden today to propose an alternative Covid-19 relief package as the White House and congressional Democrats gear up to move forward with Biden’s current $1.9 trillion plan.

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