In recent years, there has been a lot of talk about reducing student debt or eliminating what students owe after they graduate. For the most part, none of this has actually occurred. But a very small portion of this debt has recently been eliminated.
The debt revolves around colleges that were accused of defrauding their students. Investigations were carried out and it was determined that these institutions, many of which were simply being run for profit, were not operating the way that they were intended to. Essentially, the students did not get the product that they thought they would be getting when they applied for the student loans. As a result, some of these loans have been forgiven.
What is the total?
The total for every individual student will obviously be different, but the overall amount of debt being forgiven is about $25 billion. That may sound like quite a lot of money, but that really just shows how massive student debt is in the United States.
$25 billion dollars is essentially just a drop in the bucket. The total owed as of 2022 is closer to $1.75 trillion dollars. It’s a number that’s relatively hard to fathom, but it is about 70 times as high as the debt that has been forgiven. There’s still quite a long way to go, and many students didn’t even attend the schools that have been accused of fraud, so they’re not seeing any debt relief from this $25 billion.
If you have been struggling with debt, whether it’s from student loans, credit cards or something else entirely, just be sure you take the time to consider all of your options.
