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Today’s global business environment has led to rising demand for more advanced qualifications. Aston University’s Geoff Parkes explains how a DBA degree can help leaders meet employer demands and identify cutting-edge solutions to business problems. In recent years, the Doctor of Business Administration (DBA) has emerged as a prestigious qualification that equips aspiring business leaders with the skills and knowledge necessary to address complex challenges in the corporate world. Delivered online, Aston University’s Executive DBA programme is designed to accommodate professionals’ busy schedules and exemplifies the flexibility and relevance that DBA degrees offer in today’s dynamic business environment. Turning theory into practice DBA programmes, like their doctoral counterparts, require candidates to delve deeply into advanced business topics and contribute to their chosen field through original research presented in a thesis. What sets DBA graduates apart is their ability to bridge the gap between theory and practice. They are trained to apply their extensive knowledge directly to real-world business problems, making them invaluable assets to their employers. While DBA students are generally not inventing new theories, they are applying existing models in innovative and creative ways that contribute new knowledge both to academia and practice. Universities and business schools that offer DBA programmes will have a cadre of academic supervisors and faculty who can combine scholarly rigour with practical business experience. This is what students look for in their choice of institution. According to the Global DBA Survey from Compass, the typical DBA candidate boasts an impressive 15 years of professional experience on admission to the programme. It’s the norm for DBA students to complete their research while holding middle or senior management positions, showcasing their commitment to career advancement and expertise development. In fact, a DBA candidate’s thesis is usually directly related to a live work issue that requires this level of rigour. Rising educational expectations In the rapidly evolving business landscape of the 21st century, businesses worldwide are seeking leaders who can seamlessly navigate new challenges without extensive training. While a bachelor’s degree coupled with professional experience was once sufficient, the demand for more advanced qualifications has grown substantially. For many, the Master of Business Administration (MBA) has therefore supplanted the Bachelor of Business Administration (BBA) as the requisite ‘entry-level’ degree, with DBA degrees elevating candidates even further. A recent report from EFMD Global found that DBAs are on a growth trajectory, with 86 per cent of institutions offering the qualification expecting an increase in enrolments in the near future. Career advancement and reputation are key growth factors for those seeking to study the qualification. The main driving motivations are the transformation of careers (cited by 81 per cent of respondents), the ambition to achieve the recognition of ‘Doctor’ (cited by 76 per cent) and the need for research with managerial impact (71 per cent). Business as an international language The proliferation of DBA education globally is a relatively recent phenomenon, with many programmes established in the last decade. This trend is not confined to a specific geographic location – the aforementioned Global DBA Survey from Compass indicates that 42 per cent of programmes are based in Europe, 28 per cent in North America and 22 per cent in Asia. DBAs are demonstrating their ability to impart business knowledge that transcends borders. Moreover, the survey highlights an 80 per cent increase in demand for DBA programmes worldwide, with no region experiencing decreased interest and significant growth in the Middle East and Asia. Aston University’s Executive DBA programme, with its flexible distance learning approach, exemplifies this global trend. Taking an academic approach to business Contrary to popular culture perceptions, business leaders rely on a foundation of knowledge acquired through rigorous academic and professional development. A guide in US News & World Report outlines the various stages of a typical DBA online programme, emphasising that candidates undergo multiple phases of research and evaluation to become workplace-ready executives. The journey includes: Research methods: DBA programmes commence with research methods courses that equip students with essential skills for business research. These practical courses introduce students to valuable sources and questions, preparing them for their thesis projects. Thesis and defence: After completing research methods courses, DBA candidates propose their doctoral theses, refining them with faculty supervisors. Supervisors ensure that thesis topics are original and contribute knowledge to the field. Candidates then conduct research and present their findings in a viva, which determines whether they have met the required standard for a doctorate. Benefits of DBA completion DBA graduates stand to enjoy several benefits, including: 1. Increased salary: DBAs command significantly higher salaries compared to other business degrees. PayScale data reveals that while graduates of a bachelor’s degree in business earn an average of GBP£34,000, MBA graduates earn median salaries of £52,000. DBA degree holders stand to earn even more, in executive positions that might include operations director (£87,989), vice-president (£92,800) and finance director (£102,078). 2. Multiple career paths: Unlike PhD programmes that primarily prepare students for academic careers, DBAs offer participants the flexibility to pursue both academic and business careers. Aston University’s Executive DBA programme, in line with global trends, focuses on preparing students for senior management roles. DBA candidates align their research projects with their career paths, showcasing their advanced knowledge and expertise in specific domains. In conclusion, the rise of DBA programmes is driven by the growing demand for advanced business education, the globalisation of business knowledge and the need for leaders who can integrate academic rigour with practical expertise. DBA graduates are well-equipped to meet employer demands and explore innovative solutions to contemporary business challenges, making them invaluable assets in the ever-evolving world of business. Dr Geoff Parkes is DBA programme director and associate professor in marketing and strategy at Aston Business School, Aston University. Following a career in industry, he graduated with a DBA in 2015 Discover Aston University’s online Executive DBA programme Aston University is a public research university situated in Birmingham, England. In 2020, Aston University was named ‘University of the Year’ by the Guardian and ‘Outstanding Entrepreneurial University’ in the Times Higher Education Awards. Aston was also shortlisted for ‘University of the Year’ in the Times Higher Education Awards 2021
Aston University appoints new Deputy Vice-Chancellor Academic
Professor Osama Khan has nearly 20 years’ experience as an academic leader and innovator He will lead academic strategy, new educational model and student experience strategy in line with Aston 2030 Strategy Osama will join Aston University in October 2023. Aston University has appointed Professor Osama Khan as its new Deputy Vice-Chancellor Academic. With a successful career in higher education for nearly 20 years, Professor Khan will be joining Aston University from the University of Surrey where he is currently Pro-Vice-Chancellor Academic, leading on education strategy, teaching excellence and student learning experience. In his new role, he will play a central part in the development of Aston University’s academic strategy in line with the University 2030 Strategy. Responsibilities will include leading the University's academic portfolio incorporating education, curriculum, digital offerings, careers and placements, library and information services, student experience and services. Educated at Independent University, Bangladesh, University of Surrey and University of Cambridge, Osama began his academic career as a lecturer (and then senior teaching fellow) at University of Surrey in 2004. He moved to Solent University in 2012, where he held a variety of roles including director of learning and teaching at Solent Learning and Teaching Institute. He was appointed the first Pro Vice-Chancellor, Students and Teaching at Solent University leading on curriculum, digital services, learning space transformation. He was appointed as Vice-Provost, Education at University of Surrey in 2019. Subsequently his remit extended to form the Pro Vice-Chancellor, Academic portfolio with responsibility for education, curriculum, student services, digital transformation, and learning spaces. He has 25 years of teaching experience in corporate finance at various renowned universities. Professor Aleks Subic, Vice-Chancellor and Chief Executive of Aston University, said: “I am delighted to welcome Osama to Aston University and the executive team at a crucial time when we are shaping our bold strategy for 2030 and beyond. “Osama is a proven academic leader and innovator, who has who has achieved sector leading outcomes in student experience and educational quality. His strong commitment to values-based leadership is aligned well with our approach to working with our people and the diverse communities we serve. “I look forward to working with Osama to position Aston University as the leading university in the United Kingdom for student experience, employability and social mobility.” Professor Osama Khan said: “Aston University's unwavering commitment to academic excellence, coupled with its dedication to equality, diversity and inclusion, resonates deeply with me. Moreover, I commend Aston University's efforts in narrowing the awarding gaps, striving for equity in education and promoting fairness in the academic journey, for it is through education that we empower generations and create lasting impact. “I am honoured to join this creative institution as its next Deputy Vice-Chancellor Academic, where we will prioritise inclusive education and foster an environment where every individual can thrive and succeed. “I eagerly look forward to working with our exceptional faculty, dedicated staff, and talented students to shape the next chapter of excellence through the new Aston University 2030 strategy. Together, we will transform lives, foster innovation and forge a path towards a brighter tomorrow." Professor Khan will be taking up his post in October 2023.
Experts from the Centre for Personal Financial Wellbeing will examine the daily financial struggles of low to moderate income UK households The Real Accounts project will capture day-to-day financial fluctuations, understanding household money management strategies It is hoped the results will help inform policy and market innovation and debate. New research by the Centre for Personal Financial Wellbeing at Aston University will shine a light on the real day-to-day experience of financial uncertainty among UK households and help inform policy and market innovation and debate. The Real Accounts project will build an in-depth understanding of the lived experience of financial uncertainty among low to moderate income households across the country. Believed to be the first of its kind in the UK and in contrast with the snapshot data achieved by annual surveys, this long-term study will provide a fully joined-up view of household finances, capturing the day-to-day, week-to-week ups and downs, working with households to understand the situations they face and the strategies they use to manage their money. The project will be a collaboration with Nest Insight and the Yunus Centre for Social Business and Health at Glasgow Caledonian University. Experts will use a research data collection app that has been custom designed by Moneyhub to capture real-time income and expenditure transaction data over six months for a sample of around 50 low to moderate income households, combined with monthly interviewing. Professor Andy Lymer, director of the Centre for Personal Financial Wellbeing at Aston University, said: “We are really pleased to be part of this innovative project, directly focusing on real experiences of managing financial volatility and the impact that has on broader aspects of wellbeing. Too little is currently known about the scope and scale of income and expense volatility experienced by UK households. This research is really timely given people are currently facing the very significant impact of the cost-of-living crisis and often enormous uncertainty about both their incomes and their expenditures. The outcomes of this work will generate deeper understanding of what it means to experience financial challenges in reality and over sustained periods of time. It will contribute to finding better ways to help people in their everyday lives and is a perfect fit for the focus of our Centre that seeks to deepen our understanding of what matters in creating personal financial wellbeing.” Sope Otulana, head of research at Nest Insight, said: “As the rising cost of living continues to impact households across the country, and levels of household debt climb, this research is more crucial than ever. The project aims to shine a light on exactly what it is like for households today managing volatile income and expenditure, sharing their first-hand stories. While large income and expenditure datasets track individuals and their behaviour out in the world, this research puts individuals back into the contexts where their financial lives play out, focussing on the overall household – partners, parents, siblings, friends and other social connections. It will look beyond the balance sheet to also analyse social, environmental, and health factors, as well as other dynamics that can come into play and affect household finances. The research will identify trends but also capture the variation within households, recognising that there is no ‘average’ household circumstance or experience.” Alex Christopoulos, Aviva Foundation lead and senior strategic adviser and consultant, said: “Millions in the UK are struggling and worried about money. The Real Accounts research provides us with an opportunity to understand how these households are managing to get by day-to-day; the choices they make, the strategies they take and the knock-on effects this has on other areas of their life. In uncertain times, we need to better understand how people deal with fluctuations in their incomings and outgoings – and what kinds of financial support and services might enable them to build a buffer, and a plan, to deal with today’s pressures, as well as what tomorrow may bring. The Aviva Foundation is proud to be supporting Nest Insight and its partners to deliver to the Real Accounts research.” Samantha Seaton, CEO of Moneyhub, said: “It is only when we have in-depth and holistic data on a person's or household’s finances that we can truly know and begin to understand the impact of the rising cost of living. This can only be successfully achieved by bringing all of an individual's or household’s financial data together in one place, from every-day spending to long-term projects such as buying a property and saving for retirement. At Moneyhub, we’re absolutely delighted to be providing our cutting-edge technology to enable Nest Insight and its partners to collect and analyse this crucial data. We know from our own users the pressure that the current economic situation is placing on them, with many unable to save resorting to borrowing to get by each month. Having thorough data and insight will enable any solution to be highly personalised in its approach and have a much more positive impact on those that require it most. Ultimately the more real-time financial data points, the more informed the decisions can be. It has always been our purpose at Moneyhub to improve financial wellness, and this project is just one example of how we’re using Open Finance to do exactly that.” You can find out more about the project here.
Aston University establishes new independent investment company
Aston University is part of a group of eight universities which has established a new investment company Midlands Mindforge will accelerate the commercialisation of university research It aims to raise up to £250 million from investors. Aston University is one of eight research intensive universities in the Midlands to establish a new investment company to accelerate the commercialisation of university spinouts and early-stage IP rich businesses in the region. Midlands Mindforge Limited has been co-founded by Aston University, University of Birmingham, Cranfield University, Keele University, University of Leicester, Loughborough University, University of Nottingham and University of Warwick, collectively Midlands Innovation. This ambitious, patent capital investment company plans to raise up to £250 million from strategic corporate partners, institutional investors and qualifying individuals. It aims to transform ground-breaking science and technology into successful businesses with real-world impact. Midlands Mindforge will help to address the significant funding deficit for early-stage technology businesses in the region. Through the combination of additional capital and company-building skills, Midlands Mindforge will lay the foundations of a more vibrant ecosystem for emerging science-backed companies in areas such as Clean Technology, AI and Computational Science, Life Sciences and Health Tech. Professor Aleks Subic, Vice-Chancellor of Aston University, said: "Aston University has a strong track record in bringing together industry and academia to solve real world problems and drive innovation through applied and translational research. Â Investment raised through Midlands Mindforge will enable a step change that will ensure we get the very best outcomes for our research. "The impact of increased investment in research translation will be felt widely, with Midlands Mindforge supporting the growth of high value added businesses and jobs in the region and creating the right conditions to build future global companies. This is a hugely exciting time for Aston University and the wider Midlands Innovation group of universities, and I look forward to seeing the benefits that this strategic development will bring." Collectively, the eight founding universities have the most postgraduate students, the highest levels of annual income, more research disclosures and patents generated per unit of research spend in the last three years, in comparison to any other UK university grouping. Minister of State for Science, Research & Innovation George Freeman MP said: "Commercialising UK science & technology for global industrial adoption has never been more urgent for both the UK economy and the global resource challenges facing us. The Midlands Innovation universities are driving a new era of innovation from robotics and advanced manufacturing to life science and autonomous vehicles and much more. "As we in Government increase UK public R&D to a record £20 billion a year, the key is private finance backing spinouts and scale-ups. The Midlands is rapidly becoming a world class UK cluster of excellence and Midlands Mindforge will play a key role in bringing global investors to help back world class companies." Chairman of the Midlands Engine Partnership, Sir John Peace, said: "The Midlands has always been associated with exceptional invention and creativity, but has long experienced significant underinvestment and consequently productivity levels have lagged behind the rest of the UK. "This bold and ambitious initiative led by the Midlands Innovation universities has the potential to help close the investment gap, supporting our region to reach its true potential for sustainable economic growth. Midlands Mindforge will help to further fast-track commercialisation of research ideas, creating a more resilient economy and playing an important role in levelling up the Midlands." Andy Street, Mayor of the West Midlands, said: "A key part of my mayoral mission is to drive our regional recovery forward and help generate the high-quality jobs of the future in order to improve quality of life for local people. This exciting new investment vehicle will very much support that mission planting the seeds for long-term sustainable economic growth here in the West Midlands. "Many brilliant ideas and top businesses have spun out from Midlands universities and this new venture will help us to advance that agenda and retain more of our innovative success stories within our region. "Together we can better nurture the enterprising talent on our doorstep and this new endeavour creates a wonderful opportunity to do just that." For more information about Midlands Mindforge visit www.midlandsmindforge.com
Is America's banking system in trouble once again?
Nerves are rattled and many are worried as the markets opened Monday to news of another US bank collapse, making that two large banks shuttered in less than a week. It's news that's rocking the financial world on a massive scale. Federal regulators announced on Sunday that another bank had been closed and that the government would ensure that all depositors of Silicon Valley Bank — which failed Friday — would be paid back in full as Washington rushed to keep fallout from the collapse of the large institution from sweeping through the financial system. The Federal Reserve, Treasury and Federal Deposit Insurance Corporation announced in a joint statement that “depositors will have access to all of their money starting Monday, March 13.” In an attempt to assuage concerns about who would bear the costs, the agencies said that “no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.” March 12 - New York Times With an economy already on edge as Americans feel the grip of inflation and worries of recession - this is frightening news and media are scrambling for answers. What is causing the closures of these big banks and how many more will follow? How much money is lost and how much has been protected? Is this 2008 all over again? Is the federal government doing enough to stop the damage from spreading? What measures need to be put in place by government to assure citizens that their savings, retirement plans and mortgages aren't at risk? And will anyone be held accountable for the billions already lost? There's a lot to explain - and that's where our experts can help. Rebel Cole, Ph.D., a Lynn Eminent Scholar Chaired Professor of Finance, has expertise in global financial institutions, commercial banking and small business finance. He spent 10 years working in the Federal Reserve System and has experience at the the International Monetary Fund and the World Bank. Cole has been interviewed by numerous national media outlets, such as The Wall Street Journal, The New York Times, The Washington Post and Fox Business. Rebel is available to speak to media regarding the current state of banking and what Americans need to watch for or worry about. Simply click on his icon now to arrange an interview today.
Georgia Southern recognized as top 100 degree producer for diverse students
Georgia Southern University has ranked in the top providers nationally for degrees conferred to diverse students among higher education institutions. For several years, Diverse Issues In Higher Education has produced the Top 100 Degree Producers rankings of the institutions that confer the most degrees to diverse students. The data was reported at the end of 2022 for the previous year of 2020-2021. Georgia Southern ranked highly in the following categories: #2 for international (temporary resident) students receiving doctoral degrees in public health #3 for African American and total minority students receiving doctoral degrees in public health #5 for African American students receiving bachelor’s degrees in the physical sciences #6 for African American students receiving bachelor’s degrees in communications disorder sciences #6 for African American students receiving bachelor’s degrees in parks and recreation “We are proud to be ranked in the top 20 in a variety of disciplines and categories,” said Dominique A. Quarles, Ph.D., associate vice president for inclusive excellence and chief diversity officer. "Along with our designations as a First-gen Forward Institution and Military Friendly School, this highlights the University’s success in providing education to students in our diverse state and region, and it reaffirms the importance of inclusion as a value at Georgia Southern.” The number of combined bachelor’s, master’s and doctoral degrees awarded increased by over 55,000 degrees from 2019-2021 to 2021-2022 for diverse students nationwide. Underrepresented students of color received 35% of the combined degrees. The data comes from the Integrated Postsecondary Education Data system survey known as IPEDS, which are collected by the U.S. Department of Education. Georgia Southern detailed diversity rankings: Rank Category Degree Level Discipline #2 Temporary Resident Doctorate Public Health #3 African American Doctorate Public Health #3 Total Minority Doctorate Public Health #5 African American Bachelor’s Physical Sciences #6 African American Bachelor’s Communication Disorders Sciences #6 African American Bachelor’s Parks, Recreation, Leisure #8 African American Bachelor’s Engineering #9 African American Bachelor’s Marketing #10 African American Bachelor’s Rehabilitation and Therapeutic Sciences #13 African American Bachelor’s Finance #13 African American Master’s Parks, Recreation, Leisure #14 African American Bachelor’s Family And Consumer Sciences #14 Two or More Races Bachelor’s Communication Disorders #15 African American Bachelor’s Education #19 African American Bachelor’s All Disciplines Combined View the Top 100 Diverse Report Here For more information about the Top 100 Diverse Report or to speak with Dominique A. Quarles — simply reach out to Georgia Southern Director of Communications Jennifer Wise at jwise@georgiasouthern.edu to arrange an interview today.
It reflects the University’s strong and longstanding relationship with the accounting industry The University’s graduates achieved the fourth highest global pass rate in CIMA Operational Level exams It is the second year in a row the University has been recognised in this way. Aston University’s Accounting Department has won a Chartered Institute of Management Accountants (CIMA) Global Excellence Award at the CIMA Excellence Awards for the second year running. The annual Awards recognise institutions and individuals across the world going above and beyond to shape the next generation of Chartered Global Management Accountants and lead the accounting profession into the future. The Accounting Department has been awarded Global High Distinction - CGMA Campus of the Year 2022, reflecting the strong and longstanding relationship it has with the accounting industry and the professional bodies in accounting which benefits students throughout Aston Business School. The award reflects the University’s graduates achieving the third highest number of CIMA exams taken over the previous 12 months per university campus globally with above average global pass rate as well as the fourth highest global pass rate in CIMA Operational Level exams. Andy Lymer, professor of taxation and personal finance and head of department of accounting in Aston Business School, said: “Ensuring our graduates are well prepared for long and successful careers in the accounting profession is a key focus of our approach to designing and delivering our accounting degrees, and where we work on other degrees with our accounting teaching. “To be recognised for doing this at the level of one of the top three or four Universities in the world by one of the major global accounting professional bodies is clearly great news for our students - current, past and future. “It is also wonderful recognition for the great teaching team we have here that this award underlines are genuinely world class at what they do.”
Expert Podcasts: In Corporate Valuation, Customers are King
From investors to managers, business leaders need to understand the true value of companies, but many of the traditional methods are outdated and incomplete. Emory University Goizueta Business School's Professor Dan McCarthy joins to discuss customer-based corporate valuation, including the critical role customer lifetime value plays in driving a company’s success. For more insight and if you're interested in knowing more, then check out Dan's conversation that includes why customer data points are most important to monitor and how investors and managers stand to benefit from this approach. It's right here on the Goizueta Effect podcast. Dan is an Assistant Professor of Marketing at Goizueta Business School. His research centers on customer lifetime value, limited data problems, data privacy, and the marketing-finance interface. He is regularly featured as a key expert, with recent coverage in the Harvard Business Review, Wall Street Journal, Fortune, The Economist, and CNBC. If you're looking to connect or arrange an interview – simply click on his icon now to book a time today.
Tokyo International Conference on African Development
Aston University co-hosted parts of the eighth Tokyo International Conference on African Development (TICAD8). There was a total of six talks hosted by the University, five of which are available to catch up on below. TICAD8 is the eighth event of TICAD, having been initiated by Japan in 1932. The conference brings together international organisations and business representatives from African countries and Japan to promote the digitalisation of African nations to keep pace with other leading economies. Cyber security and data privacy were two of the main topics up for discussion as well as central bank digital currencies (CBDC). CBDC is a government-issued fiat currency, that is, a currency not backed by a commodity such as gold. The use of an ideal CBDC will eliminate over 100,000 armoured cars carrying cash for ATM machines all over the world, reducing CO² emissions. Experts say transitioning to fiat currency requires the highest level of cyber security. The digitalisation of the healthcare sector in Africa Professor Georg Holländer of Oxford University speaks with Aston University visiting professor - and GVE founder - Koji Fusa. The discussion focuses on the benefits of an electronic health record for both an individual and the health care provider but will also relate these benefits to issues of public health and research. The technical challenges of providing the conventional infrastructure to establish health care records will be touched on with a focus placed on data security. Reasons will be pointed out that impede the uptake of electronic health records, especially in low and middle income countries, and possible solutions are presented to overcome this problem. CBDC and private sector digital currency will facilitate the digitalisation of nations of African countries CBDC will require the highest security and privacy protection. Professor Koji Fusa, Cyber Security Innovation Centre, Aston University, CEO of GVE Ltd discusses the benefits of a comprehensive digitalisation of fiat currency. This will become a powerful digital infrastructure which could expand into other areas like healthcare. The cyber security issue pointed by the US NIST in 2016 could be solved by having a different set of systems which could reduce the risks being presented by international hacking groups having quantum computers in the future. The World Bank's support for digitalisation of Africa Takashi Miyahara, the Executive Director of the World Bank Group, presents this talk in his personal capacity. Mr. Miyahara introduces the World Bank’s contribution to date, and Japan’s collaboration with the Bank, for digital development of Africa. Mr. Miyahara worked for the Ministry of Finance of Japan since 1986 before he took the current position in January 2021. Vaccine and climate transition in Africa René Karsenti, senior adviser and honorary president of the International Capital Market Association (ICMA), former board chair of the International Finance Facility for Immunisation (IFFIm), honorary director general of the European Investment Bank (EIB) and member of the Global Advisory Board of GVE Ltd, talks to Aston University's Koji Fusa about vaccine and climate transition in Africa: two major challenges, lessons from innovative ESG financing and future endeavours. Health and vaccine finance, climate transition and sustainable finance have sparked a revolution in thinking about innovative solutions leading to implementing successfully new humanitarian finance such as IFFIm, financing GAVI, the Vaccine Alliance, as well as other new ESG investments to achieve a positive impact. He says: "Needs remain huge in Africa. "We are now at a decisive moment in such ESG investments. We have evolved in a few years from a situation where investors knew - and cared - little about what their investments were supporting, to one where purpose matters more than ever. "But only by recognizing the urgency for action particularly in Africa and the power of ESG investment, collaboration, technology and innovation would get us there." Cyber security, financial integrity and developments Professor George Feiger is the executive dean of the College of Business and Social Sciences at Aston University. He suggests truly secure data transfer has the capability to transform more than medicine and finance in the efficiency sense and also holds out the promise of helping to clean up the even more consequential problem of looting of the state.
What does Joe Biden's forgiveness of student loans mean for debt relief?
President Joe Biden has made progress on a campaign promise to provide relief for those burdened with student debt. This plan offers targeted debt relief as part of a comprehensive effort to address the burden of growing college costs and make the student loan system more manageable for working families. The President is announcing that the Department of Education will: Provide targeted debt relief to address the financial harms of the pandemic, fulfilling the President’s campaign commitment. The Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 ($250,000 for married couples). No high-income individual or high-income household – in the top 5% of incomes – will benefit from this action. To ensure a smooth transition to repayment and prevent unnecessary defaults, the pause on federal student loan repayment will be extended one final time through December 31, 2022. Borrowers should expect to resume payment in January 2023. -- White House Fact Sheet, Aug. 25 The announcement made big waves politically and news coverage is still heavy with reactions to the plan and just who it will benefit. “For some students, they will be completely debt-free afterward," said Wendy Habegger, a lecturer of finance in the James M. Hull College of Business at Augusta University. "The majority are still not going to be debt-free but instead of you having to pay an extra year, it might cut your pay time down. What this is going to do is give you money to start doing some of the other things that you have put off. You can now focus on building up an emergency fund, building up a savings account. You can put it toward your retirement.” The announcement also includes extending the student loan pause a final time through Dec. 31, 2022. “One of the good things about this debt reduction and debt forgiveness is that the Biden administration is making some very firm attempts to go in and fix some of the payment programs that are broke. So when individuals have to start paying in January, they will be able to pay a reduced amount,” said Habegger. “What’s not going to stop is the accrual of future debt. So we really need to look at the underlying problem and the costs of higher education and see if we can bring that down.” This topic will require ongoing coverage, so if you’re a reporter looking to know more, then let us help. Wendy Habegger is a respected finance expert available to offer advice on making the right money moves during volatile times. To arrange an interview, simply click on her icon now.
