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Loan Forgiveness: How Student Debt in the U.S. Has Skyrocketed

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The amount of student debt held in America is roughly equal to the size of the economy of Brazil or Australia. More than 45 million people collectively owe $1.6 trillion, according to U.S. government data.


That figure has skyrocketed over the last half-century as the cost of higher education has continued to rise. The growth in cost has substantially been more than the increase in most other household expenses.


The average cost of college has risen faster than inflation





$22,700 for ’20-’21

academic year

Average cost of public

higher education

adjusted for inflation

Not adjusted

for inflation

$22,700

for ’20-’21

academic

year

Average cost of public

higher education

adjusted for inflation

Not adjusted

for inflation

$22,700

for ’20-’21

academic

year

Average cost of public

higher education

adjusted for inflation

Not adjusted

for inflation

$22,700

for ’20-’21

academic

year

Average cost of public

higher education

adjusted for inflation

Not adjusted

for inflation





Source: College Board


Note: Includes costs of tuition, as well as room and board.


The rising cost of college has come at a time when students receive less government support, placing a greater burden on students and families to take out loans in order to fund their education.


Funding from states in particular has steadily declined, accounting for roughly 60 percent of spending on higher education just before the pandemic, according to an analysis by the Urban Institute, down from around 70 percent in the 1970s.


States’ and local government’s share of spending on higher education has been declining

Share of higher education expenditures





State appropriations

and other sources

State appropriations

and other sources





Source: Census Bureau, via Urban Institute



To address the growing crisis, President Biden announced a plan on Wednesday to wipe out significant amounts of student debt for millions of people. It was a step toward making good on a campaign promise to alleviate, as Mr. Biden has said, an unsustainable problem that has saddled generations of Americans.


“The burden is so heavy that even if you graduate,” he said, “you may not have access to the middle-class life that the college degree once provided.”


The typical undergraduate student with loans now finishes school with nearly $25,000 in debt, an Education Department analysis shows.


According to the plan, borrowers will be eligible for $10,000 in debt relief as long as they earn less than $125,000 a year or are in households earning less than $250,000. (Income will be assessed based on what borrowers reported in 2021 or 2020.)


Student debt, however, has a widely disparate impact on different populations.


Black people are increasingly carrying a larger student debt load …

Share of families by race that have an education loan









Source: Federal Reserve


Notes: Black and white groups do not include people who identify as Hispanic. Data are from the Federal Reserve’s survey of consumer finance that is conducted every three years.


… as are millennials, who owe far more than older and younger generations

Total balances of student loans by age









Source: Federal Reserve



As student debt has grown in recent years, people’s ability to repay it has declined.


When the pandemic brought the global economy to a standstill in 2020, President Trump issued a moratorium on student debt payments and forced interest rates down to zero. Mr. Biden adopted similar policies. The moves helped millions of people lower their loan balances and prevented borrowers unable to pay their loans from defaulting on them.


Nonetheless, there has been a sharp increase in the number of people whose loan balances have stayed the same or have grown since the start of the pandemic.


The pandemic moratorium lowered defaults, but balances still loom

Number of borrowers by loan status at the end of each year





+7.5 million borrowers

from 2019 to 2021

Balance is the same

or higher than one year prior

90 days or more

deliquent

Balance is the same or

higher than one year prior

+7.5 million borrowers

from 2019 to 2021

90 days or more

deliquent





Source: New York Federal Reserve



On Wednesday, Mr. Biden announced that the pandemic-era pause on payments would expire at the end of the year. He also reiterated his commitment to providing relief, in particular to lower- and middle-income households. How exactly to do that has been a topic of debate inside the White House and out.


One provision of the program involves an income cap: Debt relief may apply only to individuals or families who earn below a certain amount. The point of that provision, according to the White House, is to make sure no one who earns a high income will benefit from the relief.


An independent analysis from the Wharton School of Business showed that households earning between $51,000 and $82,000 a year would see the most relief — regardless of whether an income cap were applied. This is in part because more people at middle income levels hold student loans.


With or without an income cap, most relief would go to middle-income households





$10,000 per person, income

cap of $125,000 individual

or $250,000 household

$10,000 per person,

no income caps

In the current plan,

14% of the debt relief

will go to the lowest

fifth of earners.

If there were no income cap,

only 2 percentage points

more relief would go to the

top 10 percent of earners.

If there were no income cap

$10,000 per person, income cap of $125,000

individual or $250,000 household

$10,000 per person, no income caps

If there were no income cap, only

2 percentage points more relief would

go to the top 10 percent of earners.

In the current plan,

14% of the debt relief

will go to the lowest

fifth of earners.





Source: Wharton Budget Model


Household income quintiles are from 2022. This analysis takes into account additional relief for Pell Grant recipients.


Millions of people stand to benefit from the relief, but Mr. Biden’s announcement kicked off a heated debate about its merits.


On both sides of the political aisle, analysts and officials have worried about the plan’s effects on inflation, in part because wiping away debt could inject money into the economy. (White House economic advisers made the case that by resuming loan payments and including income caps, the plan would have a negligible effect on rising consumer prices.)


Others have argued that while the relief could help many people, it does not address the underlying problems of how expensive college has become. Some economists have even warned the move could encourage colleges and universities to raise prices with the federal government footing the bill.


“I understand that not everything I’m announcing today is going to make everybody happy,” Mr. Biden said on Wednesday. “But I believe my plan is responsible and fair.”

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Apple Delays AI-Powered Siri Enhancements Until 2026

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Apple Delays AI-Powered Siri Enhancements Until 2026

Apple has announced a delay in the release of its highly anticipated artificial intelligence (AI) enhancements for Siri. Initially set for rollout in 2025, these upgrades are now expected to arrive in 2026. The delay impacts several key features designed to make Siri smarter, more intuitive, and capable of handling more complex tasks across different apps.

Postponed Features and Their Importance

The upcoming Siri improvements are designed to provide users with a more seamless experience by enabling greater personalization and contextual awareness. Key features include the ability to interact more effectively across various applications, retrieve information from messages or documents, and execute commands based on on-screen content. For example, Siri would be able to suggest playing a recommended podcast or fetch travel details from an email or text message. These enhancements are expected to make Siri a more powerful digital assistant, capable of understanding user intent and delivering more useful responses.

Impact on Apple’s Hardware Plans

The delay in Siri’s AI improvements has also affected Apple’s hardware initiatives. One significant impact is on the development of a smart home display, which was expected to integrate these new capabilities. This device was anticipated to function as a central hub for smart home management, featuring built-in support for applications like Calendar, Notes, and potentially even the Messages app. However, with Siri’s AI upgrades postponed, the smart display’s release timeline remains uncertain.

Challenges in AI Development

Apple has been working on a comprehensive AI initiative known as Apple Intelligence, aimed at significantly enhancing Siri’s capabilities. However, the development process has encountered technical challenges, leading to an extended timeline. These delays highlight the complexities involved in building an AI-powered voice assistant that can seamlessly integrate with Apple’s ecosystem while maintaining high performance and reliability.

Competitive Pressure in the AI Space

With this postponement, Apple risks falling behind competitors in the AI-driven voice assistant market. Rivals such as Google and Amazon have been making significant strides, with Google integrating its advanced AI model into its assistant and Amazon enhancing Alexa’s conversational abilities with AI-powered updates. As these companies push forward with new innovations, the pressure increases on Apple to deliver a competitive Siri experience that meets modern user expectations.

The delay in Siri’s AI upgrades underscores the significant challenges Apple faces in developing next-generation AI-driven voice assistants. While these improvements are expected to bring a more advanced and capable Siri, users will have to wait longer than anticipated. As competitors continue to innovate in the space, Apple will need to ensure that its AI advancements, when finally released, offer a seamless and powerful experience to maintain its position in the rapidly evolving technology landscape.

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Reddit CEO Steve Huffman Unveils Monetization Strategy for 2025

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Reddit CEO Steve Huffman Unveils Monetization Strategy

In a strategic move to diversify revenue streams and enhance user engagement, Reddit CEO Steve Huffman has unveiled plans to introduce paid subscriptions for select subreddit content by the end of 2025. This initiative aims to offer exclusive, subscriber-only content within certain communities while maintaining the platform’s foundational free access.

During a recent “Ask Me Anything” session, Huffman described the paid content model as a “work in progress,” emphasizing its significance as one of the “new, key features” slated for rollout this year. He reassured users that the introduction of paid subreddits would not compromise the availability and growth of free content on the platform. This approach seeks to balance monetization efforts with Reddit’s commitment to open access, ensuring that the core user experience remains intact.

In addition to paid subscriptions, Reddit is exploring the development of marketplace features within subreddits. This would enable users to conduct transactions directly on the platform, facilitating the buying and selling of goods and services without the need for third-party platforms. Such a marketplace could significantly enhance user interactions and create new monetization avenues for both Reddit and its users. However, Huffman noted that this aspect of monetization is still under development and may take time to fully implement.

These strategic initiatives come in the wake of Reddit’s financial performance in 2024, where the company reported a net loss, prompting a reevaluation of its monetization strategies. Despite the financial setback, Reddit experienced a 39% increase in daily active unique visitors, totaling 101.7 million users. This growth, although slightly below market estimates, underscores the platform’s expanding user base and the potential for monetization through diversified offerings.

Reddit’s foray into paid content and on-platform transactions reflects a broader trend among social media platforms seeking sustainable revenue models beyond traditional advertising. By introducing exclusive content and facilitating user-driven commerce, Reddit aims to enhance user engagement, attract new audiences, and provide content creators with opportunities to monetize their contributions. As these plans unfold, the platform will need to navigate potential challenges, including user reception and the integration of new features, to successfully balance monetization with its community-driven ethos.

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PlayStation Network Suffers Major Global Outage

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PlayStation Network Suffers Major Global Outage

On February 7, 2025, Sony’s PlayStation Network (PSN) experienced a significant global outage, beginning around 6 PM Eastern Time. This disruption affected millions of users worldwide, preventing them from accessing various services, including online gaming, account management, and the PlayStation Store. The outage persisted for over 17 hours, with users reporting issues well into the following day.

During the outage, gamers encountered difficulties signing into their accounts, launching games and applications, and utilizing online features. Even single-player games and disc-based titles were impacted, as many require online verification through PSN for access. This widespread disruption led to frustration among users, who expressed their concerns across social media platforms.

Sony acknowledged the issue via their official channels, stating that they were aware of the connectivity problems and were actively working to resolve them. However, the company did not provide specific details regarding the cause of the outage or an estimated timeline for restoration. As the disruption continued, users grew increasingly dissatisfied with the lack of communication and transparency from Sony.


16 Bit Handheld Game for Kids Adults, 3.0” Large Screen Preloaded 230 HD Classic Retro Video Games with USB Rechargeable Battery & 3 Game Cartridges for Birthday Gift for Kids 4-12 (Blue)


This incident is not isolated, as PSN has experienced similar outages in the past. Notably, in October 2024, a significant disruption affected users for several hours, raising concerns about the reliability of the network. The recurrence of such issues has led to calls within the gaming community for Sony to implement more robust infrastructure and proactive communication strategies to prevent future occurrences.

The prolonged nature of the February 2025 outage highlighted the dependence of modern gaming on online services, even for traditionally offline experiences. As digital rights management and online verification become more prevalent, disruptions in network services can significantly impact the overall user experience.

In response to the outage, some users sought alternative entertainment options or turned to other gaming platforms. The incident underscored the importance of network stability and effective communication from service providers.


Microsoft Xbox One X 1TB Console with Wireless Controller: Enhanced, HDR, Native 4K, Ultra HD (2017 Model) 

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