How Biden’s student loan forgiveness will affect the economy

Hi Matt Turner. Insider Business Editor. Welcome to Insider Weekly. A roundup of top stories.

Today’s agenda:

But first: One of the biggest news of the week is President Joe Biden’s new student loan forgiveness policy. Analyzing every dollar and cent here is her senior economic policy reporter Ayelet Sheffey.

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The economics of student loan forgiveness

student loan debt chart

Madison Hoff/Insider

The day millions of student loan borrowers have been waiting for has arrived. Insider Senior Reporter Ayelet Shefee wrote:.

But as always, the devil is in the details, and not everyone qualifies.

  • Pell Grant recipients earning less than $125,000 a year are eligible for debt relief of up to $20,000.
  • All other federal borrowers with an annual income of less than $125,000 are eligible for loan forgiveness of up to $10,000.

The announcement, combined with Biden’s five extensions of student loan suspensions through Dec. 31, means that if you still have outstanding student loans after you’ve paid off up to $20,000, the president is proposing to do so. I also have His education department wants to introduce a new income-based repayment plan to lower his monthly bill.

Details on how to access this relief are minimal at this time, and we have yet to see the economic impact of this relief. The Penn Wharton budget model predicts that a $10,000 pardon will cost about $300 billion this year, and the White House has vowed not to expect it to have a meaningful impact on inflation. but put a brake on the $1.7 trillion student debt crisis.

See student loan forgiveness FAQs.

Now let’s move on to this week’s top stories.

‘Day Two’ mentality is creeping up on Amazon

Andy Jassy next to a Prime box covered in Amazon, Fresh, and AWS logos and spider webs

Mike Blake/Reuters; Marian Ayala/Insider

When he founded Amazon in 1994, Jeff Bezos preached the importance of the “Day 1” mindset. No matter how old the company is, it should always retain the fast, risk-taking entrepreneurial spirit that started it.

But according to more than a dozen current and former Amazon employees, “day two” is finally here and will pose a major challenge for CEO Andy Jassy.

Why Amazon is losing its “first day” intensity.

What does a recession mean for the work-from-home revolution?

telecommuting remote work

Insider’s Pete Ryan

As a new recession looms, millions of Americans are beginning to worry they will lose their newfound freedom to work from home. My boss hates remote work. If workers fear being fired, they will be forced to submit to what their employer demands.

But senior correspondent Aki Ito argues the opposite: rather than ending the work-from-home revolution, the recession may actually encourage migration away from the national office.

Four ways a recession can save WFH.

Pandemic boomtown is starting to collapse

A hot air balloon in Boise, Idaho, reflects on a lake next to a lush park. the sky is blue

Hot air balloon in Boise, Idaho.

Darwin Fan/Getty Images

During the pandemic, homebuyers flocked to cities with cheaper housing and plenty of outdoor space, like Denver and Boise. Right now, these bright red housing markets are cooling off.

In Boise, 70% of home sellers lowered their asking prices in July. More homes are selling and taking longer to sell. Insider spoke to seven hotspot brokers and shared the signs of a slowdown they’re seeing.

Signs of a housing slowdown.

Restaurant owner opens up about CloudKitchens

Two CloudKitchens operators in Atlanta, Anita and Chudi Orubele, hold their children

Anita Orbere and Chudi Olbere and their sons.

lindsey wetherspoon for insiders

Founded in 2016 and run by former Uber CEO Travis Kalanick, the company has facilities such as night cleaning, marketing and sales advice, and technology integration with delivery platforms like DoorDash, as well as restaurateurs. I promise to become

But several CloudKitchens operators told Insider that the company fell short of that promise — and five said they lost their savings trying to run successful businesses within the CloudKitchens space.

Read the full report here.

Quote of the week:

“I feel like I’ve become an integral part of my job, so I get a lot done while working at Conan. What a regular assistant should and shouldn’t do.” We are pushing the boundaries of.There are so many.”

Details for this week’s top story:

plus: Check out The Refresh from Insider, a dynamic audio news brief from the Insider newsroom, to get the latest business news throughout the week. Listen here tomorrow.

Curated by Matt Turner. Edited by Jordan Parker Erb and Lisa Ryan. To sign up for our other Insider newsletters, click here.

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