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Student Loan Forgiveness: Consequences and Gains

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In the US, student loan debt grows six times faster than a nation’s economy. It’s alarming to see the numbers grow as months pass by, especially seeing the interest rate. Currently, the overall student loan totals a whopping $1.71 trillion. According to Education Data, at least 43.2 million student borrowers are in debt by an average of $39,351 each. So, as President Biden took office, let’s discuss one of his campaign promises— student loan forgiveness. 

Student Loan Forgiveness: Gains

President Biden, along with other top Democrats, made student loan forgiveness their number one priority. The president advocated at least $10,000 worth of debt per borrower. Meanwhile, Senate Majority Leader Schumer (D-N.Y.) and Senator Warren (D-Mass) opted for an aggressive push for $50,000 per debt borrower. 

As student loan forgiveness is in ongoing discussions, the state of entrepreneurship hangs on a thin thread of balance. We should also consider that the economy is still in its post-Covid recovery. The final decision will have a significant effect not only on entrepreneurship but also on the overall economy. 

We are all aware that small businesses play a huge role in job creations following recessions. Meanwhile, the overall $1.7 trillion worth of student loan debt is spread across at least 45 million people. The ongoing payments limit the legion of young to middle-aged dreamers from taking an entrepreneurial leap. 

Skyler Pearson, the CEO, and co-founder of Nexgarden, is a graduate of the University of Oregon in 2013. She has a student loan debt worth $50,000. After Pearson started Nexgarden in 2017, she didn’t foresee how the debt would tighten her overall operational budget. Recently, she obtained $100,000 worth of bank loans to help Nexgarden. According to Pearson, just talking about student loan forgiveness is enough to give her chills. 

Imagine all the other entrepreneurs or professionals who are shackled with a growing student loan debt. Any loan limits a person’s professional growth and financial decisions. In the end, whichever amount the government decides to push forward, it’s an excellent benefit for millions of people. Student loan forgiveness would lighten off some load on their shoulders if not all. 

Student Loan Forgiveness: Consequences 

Karthik Krishnan’s research managed to highlight the most straightforward answer— “the more debt you forgive, the better it is for entrepreneurship.” However, the economist strongly warns against that idea. In 2015, Krishnan co-authored the first academic paper to create about: 

  • The rising student loan debt
  • Decline in entrepreneurship 

According to his research, the inverse of the idea should be accurate—fewer debt results in the rise of entrepreneurship. However, reality does not have a definitive cause and effect. Whichever the outcome of the government’s ongoing discussion, there’s always a consequence. 

If too much debt is canceled at one swoop, it could send the economy’s interest rates skyrocketing. It could also balloon the federal deficit, mainly when it goes hand-in-hand with Biden’s proposed Covid-19 recovery package worth $1.9 trillion. Its effects will drag on a lot of factors such as: 

  • The economy
  • The country’s recovery
  • Small businesses at large

According to John Dearie, Center for American Entrepreneurship founder, these are enough to raise red flags for a Republican deficit. So, the more student loan debt the Democrats propose to forgive, the harder it is to get the GOP on board. In the end, Dearie suggests that both need to reach a compromise. He also explains why the administration’s proposal is limited as they take a more reasonable approach to provide relief. 

A Band-aid Fix

Although President Biden’s plan of $10,000 is more feasible, critics say it won’t make an impact. As mentioned above, an average student has more than $30,000 worth of debt. After cutting the loan with the proposed $10,000, it could still leave a vast balance. 

Meanwhile, Krishnan suggests the ideal number would be somewhere between $10,000 to $50,000. As for John Dearie, he pointed out that this is a “band-aid fix.” It’s only a temporary solution without addressing any more significant issues. The policies should be in longer-term targeting factors like loan repayment plans or rising college tuition fees. Besides, America’s next generation of entrepreneurs might find themselves back at square one. 

However, for Skyler Pearson, co-founder of Nexgarden, those problems are for another day. If we think from the borrower’s perspective, chopping off $10,000 is already considered a huge help. It can be regarded as one step closer to finally paying the overall student loan debt. Let’s bear in mind that any amount helps. We can only hope that the final decision will greatly help millions who are still in student loan debt.

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Update on 3rd Stimulus Check, $1400 For Each Dependent

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The IRS reveals that some Americans are getting ‘plus up’ payments with the third round of the stimulus check. 

Since President Joe Biden signed the American Rescue Plan last month, there are more than 130 million who received the Economic Impact Payments. These are worth up to $1400, including the $1400 per dependent. To date, $335 Billion has gone out. 

According to reports, some Americans are getting ‘plus up’ payments as long as their 2020 tax returns were processed. Those who experienced a decline in their household income, compared to their 2019 tax returns, could receive more money. The same goes if you have a new dependent. 

The IRS also shared that they issued checks to those with information not on record and just filed their tax returns to qualify for the stimulus check. 

The full $1,400 payments are for individuals and heads of the household earning $75,000 and $112,500, respectively. For married couples earning $150,000, they are eligible for $2,800. Reports state that 85% of US adults are qualified to get the full amount. 

Parents will also have $1,400 per dependent. Take note that this was only $600 during the first two rounds and is only for dependents ages 17 and below. However, for the third stimulus check, they have already included adult dependents. So if you are a parent with college-age students or living with the elderly and people with disabilities, you will receive extra money for this round. 

Those who receive disability, retirement, and survivor benefits should have their payments last April 7. Most of the payments made were for people who didn’t file a tax return in 2019. 

Around 85,000 Americans receiving benefits from the Railroad Retirement Board should have their stimulus checks this week. 

Meanwhile, a few US veterans have been patiently waiting for their third stimulus check. The IRS released a statement that veterans will receive their pension benefits and compensation through direct deposit starting next week, and they can expect it by April 14. 

The money is arriving through direct deposits, mailboxes, and prepaid EIP debit cards. Hence, it is strongly suggested to monitor your payment status with the IRS and with the USPS. 

What to Do with Missing $1,400 stimulus Check? 

Just in case you encounter problems with your stimulus check, do not call the IRS. That would be useless as their phone operators will not have access to the information you need. What they only have are the data already found in the IRS.gov. 

Here’s what to do. 

Fifteen days after the IRS sends your check, you will receive a letter about the payment. If you did not receive any, you must request an IRS Payment Trace. You can do so by calling the IRS through this number: 800-919-9835. Or you may complete the Form 3911, Taxpayer Statement Regarding Refund, and mail it to them. 

When you’ve already made a request through a phone call, there’s no need to send the form.

The IRS will issue a replacement. However, if you suddenly found your check, you need to return it as soon as possible.

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Shocking Revelations on Meghan Markle Interview with Oprah

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The ‘Meghan Markle interview’ happened weeks ago, but it’s still making the headlines. Why wouldn’t it be? It has some of the juiciest revelations about the royal family. It reminded us how Princess Diana made some shocking news decades ago with her own interviews. 

The interview last month was seen by more than 17 million viewers in the US and 11 million viewers in the UK. To date, people all over the globe want to see the entire interview—proof of how controversial it is. 

Archie’s Color And Racism 

harry and meghan markle
Credits: CBS

One of the most controversial topics during the ‘Meghan Markle interview’ was the apparent ‘concerns’ about the baby’s skin color. 

According to the couple, a member of the family raised the issue of how dark the skin of the unborn baby would be. This happened while Meghan was still carrying him in her womb.   

Meghan’s Suicidal Thoughts During Pregnancy

Long ago, the duchess was already giving clues about her mental health. But during the interview with Oprah, she told her how severe it became during her pregnancy. 

She mentioned how her life with the royal family was isolating. Meghan revealed that she felt there was a lack of support. She bravely shared that she had thoughts of killing herself while pregnant with their son, Archie. 

She wanted to get help. But the palace didn’t allow her as it wouldn’t be good for the institution. In addition to that, the HR department refused to give her support as she was not a ‘paid employee of the institution.’ 

Kate Made Meghan Cry 

A few months after Meghan and Harry’s wedding, there were reports that she made her sister-in-law cry over flower girl dresses. However, Meghan revealed that she was the one who cried, invalidating the entire story. 

According to her, Kate apologized and brought her flowers and a note. She then forgave her after the fiasco. But, it seems that the public would always want to pit them against each other. 

The Feeling of Being Trapped

Harry shared that his father and brother are trapped in the system. He jokingly shared that he couldn’t even call Uber to the palace. 

As for Meghan, she never received guidance in terms of her role. It’s far more different from what you see in movies, where newcomers will be trained to sit, speak, and all that formality. In fact, she would even Google the words of the British national anthem to avoid embarrassment. 

Meghan’s Biggest Regret 

Meghan’s biggest regret was the time that she believed the palace would protect her. Apparently, things went south, and no protection was ever given. 

She realized that being on the other side, they are not just surviving. They are also thriving. This implies how their lives became better after being working royals. 

Of course, some people were not happy about the controversial ‘Meghan Markle Interview.’ One of them is Prince Albert of Monaco. For him, it was inappropriate. 

While he understands the pressure the two went through, he believes it shouldn’t be laid out in public the way they did it. 

The palace has already issued a statement and shared that the issues, particularly about race, will be addressed by the family privately.

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MacKenzie Scott Gets Married to Seattle Science Teacher

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MacKenzie Scott, a philanthropist, is one of the world’s wealthiest women, ranked 22nd worldwide. She’s also known as the ex-wife of Jeff Bezos—whom she’s married to for a total of 25 years. According to Forbes, Mackenzie Scott is worth a whopping total of $53 billion, thanks to her share in the world’s leading eCommerce.  

In 2019, when Scott’s divorce with Bezos was finalized, she signed the Giving Pledge— a promise to give half of her lifetime fortune to charity. Ever since, she’s been an active philanthropist, notably giving $4 billion in four months to communities in need. Through the Giving Pledge, the news about Scott’s marriage emerges to the public. 

Mackenzie Scott’s New Husband

It turns out Mackenzie Scott has found love again with Dan Jewett, a Seattle teacher. The couple met each other at Lakeside School, the private school attended by Scott’s children. It’s been confirmed that Dan Jewett is a teacher at Lakeside School who’s teaching science or chemistry. 

Jewett joined hands with Scott in her charitable journey, writing a Giving Pledge statement posted last March 6. According to Jewett’s statement, he’s happy to marry one of the most generous people in existence. He says he is joining his wife’s commitment “to pass on an enormous financial wealth to serve others.” 

He continues the statement by saying it’s strange to write a letter indicating his plan to give away most of his wealth in a lifetime. Plus, he noted that for the “majority” of his life, he’s been a teacher. So, he never “sought to gather the kind of wealth.” 

In the last part of Dewett’s letter, he says that “this pledge will benefit me as much as if benefits anyone else served by it.” As a final note on his letter, Dewett expressed that he looks forward to “the growth and learning” he’ll experience as he goes through his part of the undertaking with his wife. As much as both are private with their lives, we can say that they are excellent for each other. 

Jeff Bezos’ Reaction

Meanwhile, the ex-husband reacted to the news positively. An Amazon spokesperson provided a statement to Forbes from Bezos saying, “Dan is such a great guy.” Bezos further commented that he’s happy and excited for the husband and wife. 

Other Charitable Acts of MacKenzie Scott 

The most recent public remark from Scott is from her last year’s $4.1 billion donations. According to Scott, although she’s far from completing her lifetime pledge, it’s a “year of giving.” In December, she wrote that the year began with the exposure to leaders of historically marginalized groups that’s fighting inequities. 

She further continued by saying it ended with the “exposure of thousands of organizations.” These organizations are working hand-in-hand to alleviate the suffering of people who’ve been hit hardest by the ongoing pandemic. Overall, the announced donations of Scott to charitable and nonprofits total $5.8 billion. 

Final Note

In the end, we can say people can find love in the most unexpected places— even your local private school. Let’s wish all the best for Scott and Jewett on their journey as a married couple. From the get-go of this relationship, we can say that a new philanthropist power couple is born.

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