Biden’s student debt relief plan could ease the burden on women borrowers

Good morning, Broadsheet readers! Three more laws triggering abortion bans go into effect, the Black Girls Code faces more turbulence, and the White House’s student loan relief announcement will have a huge impact on women. Have a thoughtful Thursday.

– Forgive and forget. President Joe Biden yesterday announced his intention to cancel up to $10,000 in federal student loan debt for millions of borrowers in the US, and an additional $10,000 for Pell Grant recipients. The long-awaited decision will have a huge impact on the approximately 45 million Americans with federal student loans, especially women.

Women hold two-thirds of student debt in the US, according to the American Association of University Women, with an average balance of $31,276. Consider the gender pay gap that widens as women age, become mothers and advance in their careers, with women taking about two years longer than men to pay off their student loans.

“This is going to have an impact on women across the country,” White House deputy communications director Kate Berner said in an interview yesterday.

Biden’s plan forgives up to $10,000 in student debt for people making less than $125,000 a year and households making less than $250,000 a year. It also eliminates up to $20,000 in loans for recipients of Pell Grants, which are awarded to low-income students. African-American students and graduates make up the majority of Pell Grant recipients and are double the odds as white borrowers to receive them.

The White House estimates that the loan forgiveness plan will relieve the debt of 43 million people and completely eliminate student debt for 20 million Americans, reducing the $1.6 trillion that American borrowers owe on federal student loans. That said, for borrowers with tens of thousands in student loans, $10,000 or even $20,000 in relief will still leave them with large sums to pay back.

However, the Biden administration’s plan does take some steps to provide relief even for borrowers who will still owe large sums. Reforms to income-based payment plans they are intended to prevent interest from accruing and increasing total balances even as borrowers pay off their loans each month. Hopefully that will prevent stories like Keona Tranby’s, for example. In an interview with Fortune Earlier this year, the 32-year-old recounted how she paid off $28,800 in student loans over the last 10 years. But during that time frame, her total balance increased from just over $50,000 to $62,000.

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“People can finally start to get out from under that mountain of debt,” Biden he said in a speech yesterday. “To finally think about buying a house, starting a family or starting a business. And by the way, when this happens, the whole economy is better off.”

The announcement comes less than three months before the 2022 midterm elections. While Biden did not write off student debt entirely, as many progressives have called, the relief could give Democrats a boost with voters before November.

emma hinchliffe
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@_emmahinchliffe

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ALSO IN THE HEADLINES

– Today is the day. Three more states (Tennessee, Idaho and Texas) will place further restrictions on abortion today, as additional trigger laws take effect. Abortion bans are also expected to take effect in Arizona and Indiana in September. NPR

– It’s not yours. Two of Paul Newman’s daughters are suing Newman’s Own Foundation, the nonprofit organization established by the late actor in 2005 that controls the food company of the same name. Elinor and Susan Newman allege that his father’s will was altered a few months before his death, when he was no longer mentally competent, and departed from the legacy intentions expressed by him and his advisers years before. his demise. The daughters also claim that the foundation has reduced the amount of money they can give to charity and is seeking $1.6 million in damages to donate to charities of their choice. Wall Street Journal

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– Fight for control. AfterBlack Girls Code, a non-profit organization, is suing founder and former CEO Kimberly Bryant, claiming she is holding the website hostage and using it to advertise her lawsuit and complaints against the organization. In August, Bryant was fired from Black Girls Code, which runs programs aimed at teaching girls tech skills, following the conclusion of an investigation into alleged mistreatment of staff. Bryant, who claims the board ousted her and took control of BGC’s finances for “personal gain,” called the lawsuit “frivolous and defamatory”. Business Insider

– The votes are in. Results from Tuesday’s primaries in Florida and New York and a runoff in Oklahoma continued to come in on Wednesday. Oklahoma Democrat Madison Horn won the Senate primary runoff and will face incumbent James Lankford in November, though the race is expected to go to Lankford. Progressive Challenger Alessandra Biaggi lost his offer unseat Democratic Rep. Sean Patrick Maloney in New York. Center for Women and American Politics

MOVEMENTS AND AGITATORS: pinterest hired Stacy MaloneFormer Senior Director of Meta’s Global Client and Enterprise Marketing team, as Vice President of Global Enterprise Marketing. Kristy McCown, Former head of North America partnerships at Klarna, will join SaaS procurement platform Tropic as head of partnerships. Former Amazon Chief Executive Development Officer Patty Bedard joins CareRev as director of personnel. Opendoor has hired Subramanian Raji as chief technology officer. Wendy Steinle joins Domo as director of marketing. Caroline Wilson joins Reach Agency as Executive Vice President of Partners and Innovation.

IN CASE YOU MISSED IT

– Sudden departure. Four female Oprah Winfrey Network (OWN) executives are leaving the network amid the turbulent Warner Bros Discovery merger. Karen Grant-Selma and Jennifer Giddens will step down from their respective roles as General Counsel and Chief Marketing Officer. MaryBeth Cunin, head of programming and programming, and Nicole Nichols, executive vice president of communications, are also retiring, but Nichols will continue to serve as Winfrey’s personal representative and head of communications for Winfrey’s production company, Harpo Productions. Her exits follow the high-profile departures of WarnerMedia CEO and President Ann Sarnoff and global communications chief Johanna Fuentes this spring. Variety

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Nightmare in the kitchen. Former employees at an Amy’s Kitchen plant in San Jose allege that supervisors and managers participated in sexually inappropriate behavior and that the food company’s human resources department did not act sufficiently on employee complaints. Workers say one supervisor in particular would give preferential treatment to younger women over older women and appeared to touch himself inappropriately while spending time with the former. The employees were in the midst of a unionization drive when the company announced that the plant would close completely in mid-September. Diner

– Texas Showdown. A Trump-appointed federal judge in Texas ruled Tuesday night that guidance from the Biden administration requiring hospitals in states that ban abortions to perform the procedure in certain cases was exceeding federal law. Texas Tribune

Fight fire with fire. After losing her primary to a pro-Trump opponent last week, Rep. Liz Cheney is assembling a team of political consultants as she considers a 2024 run to prevent former President Donald Trump from ever reaching the White House again. Many of Cheney’s advisers are prominent Trump allies and advisers, including billionaire conservative donor Charles Koch. While many of these supporters have remained silent about explicitly supporting Cheney, her help defies requests by pro-Trump lobbyists and politicians not to support Cheney’s team. CNBC

ON MY RADAR

Women should not do any more housework this year Bloomberg

You can ignore Andrew Tate vox

Mario Batali settles two sexual misconduct lawsuits Diner

Thank you, Miss Clairol. Washington Post

STARTING WORDS

“It was my workplace. In any other workplace, it would be seen as an attack. It was really annoying.”

Actress/director Olivia Wilde on receiving custody papers from her ex-fiancé Jason Sudeikis while on stage for a CinemaCon presentation in April.

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