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    Biden’s Big Dreams Meet the Limits of ‘Imperfect’ Tools

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    The student loan plan is the latest example of Democrats practicing the art of the possible on the nation’s most pressing economic challenges and ending up with risky or patchwork solutions.WASHINGTON — President Biden’s move this week to cancel student loan debt for tens of millions of borrowers and reduce future loan payments for millions more comes with a huge catch, economists warn: It does almost nothing to limit the skyrocketing cost of college and could very well fuel even faster tuition increases in the future.That downside is a direct consequence of Mr. Biden’s decision to use executive action to erase some or all student debt for individuals earning $125,000 a year or less, after failing to push debt forgiveness through Congress. Experts warn that schools could easily game the new structure Mr. Biden has created for higher education financing, cranking up prices and encouraging students to load up on debt with the expectation that it will never need to be paid in full.It is the latest example, along with energy and health care, of Democrats in Washington seeking to address the nation’s most pressing economic challenges by practicing the art of the possible — and ending up with imperfect solutions.There are practical political limits to what Mr. Biden and his party can accomplish in Washington.Democrats have razor-thin margins in the House and Senate. Their ranks include liberals who favor wholesale overhaul of sectors like energy and education and centrists who prefer more modest changes, if any. Republicans have opposed nearly all of Mr. Biden’s attempts, along with those of President Barack Obama starting more than a decade ago, to expand the reach of government into the economy. The Supreme Court’s conservative majority has sought to curb what it sees as executive branch overreach on issues like climate change.As a result, much of the structure of key markets, like college and health insurance, remains intact. Mr. Biden has scored victories on climate, health care and now — pending possible legal challenges — student debt, often by pushing the boundaries of executive authority. Even progressives calling on him to do more agree he could not impose European-style government control over the higher education or health care systems without the help of Congress.The president has dropped entire sections of his policy agenda as he sought paths to compromise. He has been left to leverage what appears to be the most powerful tool currently available to Democrats in a polarized nation — the spending power of the federal government — as they seek to tackle the challenges of rising temperatures and impeded access to higher education and health care.Arindrajit Dube, an economist at the University of Massachusetts Amherst who consulted with Mr. Biden’s aides on the student loan issue and supported his announcement this week, said in an interview that the debt cancellation plans were necessarily incomplete because Mr. Biden’s executive authority could reach only so far into the higher education system.“This is an imperfect tool,” Mr. Dube said, “that is however one that is at the president’s disposal, and he is using it.”But because the policies pursued by Mr. Biden and his party do comparatively little to affect the prices consumers pay in some parts of those markets, many experts warn, they risk raising costs to taxpayers and, in some cases, hurting some consumers they are trying to help.Mr. Biden’s plan would forgive up to $10,000 in student debt for individual borrowers earning $125,000 a year or less and households earning up to $250,000, with another $10,000 for Pell grant recipients.Cheriss May for The New York Times“You’ve done nothing that changes the structure of education” with Mr. Biden’s student loan moves, said R. Glenn Hubbard, a Columbia University economist who was the chairman of the White House Council of Economic Advisers under President George W. Bush. “All you’re going to do is raise the price.”Mr. Hubbard said Mr. Biden’s team had made similar missteps on energy, health care, climate and more. “I understand the politics, so I’m not making a naïve comment here,” Mr. Hubbard said. “But fixing through subsidies doesn’t get you there — or it gets you such market distortions, you really ought to worry.”Mr. Biden said on Wednesday that his administration would forgive up to $10,000 in student debt for individual borrowers earning $125,000 a year or less and households earning up to $250,000, with another $10,000 in relief for people from low-income families who received Pell grants in school.What’s in the Inflation Reduction ActCard 1 of 8What’s in the Inflation Reduction ActA substantive legislation. More

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    Biden Student Loan Plan Squarely Targets Middle Class

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    President Biden is offering what independent analysts suggest would be his most targeted assistance yet to middle-class workers — while trying to repair what he casts as a broken bridge to the middle class.WASHINGTON — The big winners from President Biden’s plan to forgive hundreds of billions of dollars in student loans are not rich graduates of Harvard and Yale, as many critics claim.In fact, the benefits of Mr. Biden’s proposals will largely go to the middle class. According to independent analyses, the people eligible for debt relief are disproportionately young and Black. And they are concentrated in the middle band of Americans by income, defined as households earning between $51,000 and $82,000 a year.The Education Department estimates that nearly 90 percent of affected borrowers earn $75,000 a year or less. Ivy League graduates make up less than 1 percent of federal student borrowers nationwide.Economists say the full scope of Mr. Biden’s plan, including significant changes meant to reduce the payments that millions of borrowers will make for years to come, will help middle-income earners from a wide range of schools and backgrounds.“You’ll have a lot more people who are making zero payments and will have significant loan forgiveness in the future,” said Constantine Yannelis, an economist at the University of Chicago’s Booth School of Business. “The relief to borrowers is going to be more targeted to the people who really need it.”Yet despite the appeal of such debt relief, the program still has set off a contentious debate as economists and political figures assess the full consequences of the plan. By some estimates, it will cost as much as a half-trillion dollars over the course of a decade, imposing a future burden on American taxpayers.The plan also could encourage colleges to raise tuition even faster than they already are. Schools could try to persuade borrowers to take on as much debt as possible to cover higher tuition, with the belief that the federal government would help pay it back.Some conservative and Democratic economists also say the program could add significantly to what is already the highest inflation rate in four decades. Evidence suggests those claims are overstated, however, and American shoppers are not likely to see prices spike because of the program.The announcements Mr. Biden made, including both debt forgiveness and a restart next year of loan payments for all borrowers after a nearly three-year pause, will most likely be a wash for consumer prices, a wide range of economists say.“Debt forgiveness that lowers monthly payments is slightly inflationary in isolation,” analysts from Goldman Sachs wrote in a research note on Thursday, “but the resumption of payments is likely to more than offset this.”What to Know About Student Loan Debt ReliefCard 1 of 5What to Know About Student Loan Debt ReliefMany will benefit. More

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    Who Qualifies For Biden’s Student Loan Forgiveness Plan

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    President Biden’s move means the student loan balances of millions of people could fall by as much as $20,000. This F.A.Q. explains how it will work.President Biden announced on Wednesday that the federal government would cancel up to $20,000 worth of federal student loans for millions of people. But not everyone with debt will qualify.The action includes rules that will maintain the balances of debtors who currently have high incomes. Those who do qualify will need to navigate the balky federal loan servicing system and keep a close eye on their accounts and credit reports for any mistakes.It also extends the pause on monthly student loan payments, which means that borrowers won’t have to resume payments until at least January, and provides details on a new proposal to create a more affordable income-driven repayment plan.What follows are questions you may have about the cancellation program with answers that have come from the White House, the Department of Education and student loan servicers.We will update this article in the coming days and weeks as more details become available.Who qualifies for loan cancellation?Individuals who are single and earn under $125,000 will qualify for the $10,000 in debt cancellation. If you’re married and file your taxes jointly or are a head of household, you qualify if your income is under $250,000.Eligibility will be based on your adjusted gross income. Income figures from either 2020 or 2021 can render you eligible, but 2022 income will not.If you received a Pell Grant and meet these income requirements, you could qualify for an extra $10,000 in cancellation.Loans obtained after June 30 are not eligible for relief.Which types of debt qualify?Only federal student loan debt is eligible. This includes PLUS loans, whether parents or graduate students took them out.Private loans are not eligible. Neither are many so-called F.F.E.L. loans, which stand for Federal Family Education Loan. If your F.F.E.L. loan was not eligible for the payment pause that began in 2020, it will not be eligible for the new cancellation.I didn’t finish my degree. Does that disqualify me?No.President Biden, speaking at Morehouse College and Clark Atlanta University, is also giving those who received Pell Grants the possibility of qualifying for another $10,000 in loan cancellation.Doug Mills/The New York TimesWhat’s the first thing I need to do if I qualify?Start by making sure that your loan servicer knows how to find you, so that you’ll be able to receive any guidance it provides and follow any instructions that it issues. Check that your postal address, your email address and your mobile phone number are listed accurately.If you don’t know who your servicer is, consult the Department of Education’s “Who is my loan servicer?” web page for instructions.Will the $10,000 in cancellation happen automatically, or do I need to submit a tax return or do something else to prove that I qualify?It depends. If you’re already enrolled in some kind of income-driven repayment plan and have submitted your most recent tax return to certify that income, your servicer and the Education Department know how much you earn and you should not need to do anything else. Still, keep an eye out for guidance from your servicer.What to Know About Student Loan Debt ReliefCard 1 of 5What to Know About Student Loan Debt ReliefMany will benefit. More

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    Inflation Complicates Biden’s Deliberations on Student Loan Forgiveness

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    The president is trying to balance his campaign promise to cancel thousands of dollars in student debt for tens of millions of borrowers with concerns such a move would be seen as a handout.WASHINGTON — The soaring cost of food, gasoline and other staples is further complicating a fraught debate among President Biden and his closest advisers over whether to follow through on his campaign pledge to cancel thousands of dollars of student loan debt for tens of millions of people.While Mr. Biden has signaled to Democratic lawmakers that he will probably move forward with some form of student loan relief, he is still pressing his team for details about the economic ramifications of wiping out $10,000 of debt for some — or all — of the nation’s 43 million federal student loan recipients.In meetings this spring, Mr. Biden repeatedly asked for more data on whether the move would primarily benefit well-off borrowers from private universities who might not need the help, according to people involved in the process. The country’s 8.6 percent inflation rate, a four-decade high, has added another layer of complexity to the decision: What would it mean for the economy if the government forgives some $321 billion in loans?“You’re talking about millions, possibly billions of dollars that could be spent. You should do it with eyes wide open,” said Cedric Richmond, who stepped down as a senior adviser to Mr. Biden last month. “He wants to make sure that it’s based in equity and it doesn’t exacerbate disparities.”While Mr. Biden has yet to make a decision on student debt cancellation, his aides say he will before the end of August. The White House has been deeply divided over the political and economic effects of loan forgiveness. Mr. Biden’s chief of staff, Ron Klain, has argued that it would galvanize a base of young voters increasingly frustrated with the president. Other aides have presented data showing that many Americans who saved money to pay off tuition for themselves or their children would resent the move.Some economic advisers have made the case to Mr. Biden that the move might actually relieve inflation, at least a little, if he pairs debt forgiveness to a restart of the interest payments on student loans, which have been paused since early in the pandemic.Mr. Biden’s deliberations are emblematic of his attempts to straddle deep ideological divides in the country, often within his party. According to people familiar with his thinking, Mr. Biden is struggling to balance his promise to deliver sweeping proposals to address racial and economic disparities with concerns that loan cancellation would exacerbate inflation and be seen as a giveaway, undermining his image as a champion for labor and the working class.Mr. Biden is considering a framework for student debt relief that his economic aides have assured him would not exacerbate inflation and could potentially ease price growth slightly.Under the plan, Mr. Biden would cancel some debt for certain borrowers, likely up to $10,000 each, which would effectively give some of those borrowers more money to spend on goods and services, like buying furniture or dining out, potentially creating additional demand that could further push up prices. Any move to relieve debt would include some type of income limits on those who qualify.But at the same time, he would end a pause on student loan interest payments for all borrowers, which was imposed in March 2020 and has been extended seven times, most recently until Aug. 31. That would effectively force many of those borrowers to spend less on goods and services to resume their loan payments.Mr. Biden’s aides believe that pairing the two policies could pull a small amount of consumer buying power out of the economy. By some administration estimates, the two policies could bring inflation down very slightly. At minimum, aides say, they would cancel each other out.“Given that fighting inflation is the president’s top domestic priority,” Jared Bernstein, a member of the White House Council of Economic Advisers, said in an interview, “the key economic fact here is that if debt payment restart and debt relief were to occur at roughly the same time, the net inflationary effect should be neutral.”Designing a plan to be inflation-neutral, at worst, under the administration’s accounting would require limiting the debt relief to far less than what more liberal Democrats have pushed Mr. Biden to grant.Opponents of debt cancellation would prefer Mr. Biden restart loan payments and not forgive any debt, which they say would have a better chance of dampening inflation. And they say the administration is making its inflation math appear rosier by looking at the resumption of interest payments as a new policy that could work as a counterbalance to canceling some debt, when the pause was always intended to be only temporary.The administration’s math showing the paired policies to be neutral for inflation “is not the way I would prefer to think about it,” said Marc Goldwein, the senior policy director at the Committee for a Responsible Federal Budget, a nonpartisan fiscal watchdog group in Washington, and a critic of cancellation proposals. “But it’s not totally bizarre for somebody to think about it that way.”Mr. Biden told reporters this week that he was close to making a decision on student debt. A White House official, speaking on the condition of anonymity to discuss internal discussions, said the administration wanted to wait until the end of August to assess how much of a problem inflation is by then, as well as any legislative movement in Congress.The White House has said it would prefer that Congress pass legislation on student loan relief, but Senate Democrats lack the votes, leaving executive action as the only apparent pathway. And pressure is building from Democrats who want Mr. Biden to make good on his campaign promise.President Biden has signaled that he will probably move forward with some form of student loan relief.Haiyun Jiang/The New York TimesDuring a White House meeting in May, Senators Elizabeth Warren of Massachusetts, Chuck Schumer of New York and Raphael Warnock of Georgia, all Democrats, presented data to Mr. Biden showing that debt cancellation would benefit borrowers who failed to obtain a degree to rebut the notion that relief would be a giveaway to the privileged, according to a person briefed on the meeting. Vice President Kamala Harris has also met with Mr. Biden to break down the groups that would benefit, another official said.Democrats have often cited a report from Temple University showing that nearly 40 percent of full-time undergraduates who enrolled in the 2011-12 academic year accumulated some debt but did not have a degree after six years.Republicans in Congress have attacked the White House as fiscally irresponsible. Representative Virginia Foxx of North Carolina, the top Republican on the Education and Labor Committee, said in a letter to the Education Department this month that she was “gravely concerned the department will further harm borrowers and taxpayers if it acts on student loan forgiveness, in part because of its inability to follow through on its grandiose proposals.”Student Loans: Key Things to KnowCard 1 of 4Corinthian Colleges. More

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    The Potential Dark Side of a White-Hot Labor Market

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    The strong job market may be about to take a turn for the worse. That could come to haunt those who made choices based on today’s conditions.Shanna Jackson, the president of Nashville State Community College, is struggling with a dilemma that reads like good news: Her students are taking jobs from employers who are eager to hire, and paying them good wages.The problem is that students often drop their plans to earn a degree in order to take the attractive positions offered by these desperate employers. Ms. Jackson is worried that when the labor market cools — a near certainty as the Federal Reserve Board raises interest rates, slowing the economy in an attempt to control rapid inflation — an incomplete education will come back to haunt these students.“If you’ve got housing costs rising, gas prices going up, food prices going up, the short-term decision is: Let me make money now, and I’ll go back to school later,” Ms. Jackson said. Anecdotally, she said, the issue is most intense in hospitality-related training programs, where credentials are often valued but not technically required.Strong labor markets often encourage people to forgo training, but this economic moment poses unusually difficult trade-offs for students with families or other financial responsibilities. Cutting working hours to go to class right now means passing up the benefits of strong wage growth at a moment of soaring fuel, food and housing costs.Taking advantage of the plentiful job opportunities available now could come with upsides — employment can build résumés and provide people with valuable experience and skills. But labor economists say that deciding to skip school and training today could come at a cost down the road. Research consistently suggests that people with degrees and skills training earn more and have more job stability in the longer run.“It’s really great to have income, but you also want to keep your eye on the future,” Mary C. Daly, president of the Federal Reserve Bank of San Francisco, said in an interview last week. “Workers with higher skills will have higher wages and more upside potential.”Ms. Daly speaks from personal experience. She herself dropped out of high school at age 15 to earn money. She eventually earned her graduation equivalency and enrolled in a semester of classes at a local college, but had to work three part-time jobs — at a Target, a doughnut shop and a deli — to support herself while she studied. She went on to pursue a degree full time and later earned a Ph.D. in economics.“That hard work was the best choice I have ever made,” she said. Drawing on her own experience and on the data she parses as a labor economist, she often urges young people to stay in training to improve their own future opportunities, even if they have to balance it with work.“The jobs that are hot right now — restaurants, warehousing — these are things that won’t last forever,” Ms. Daly said.Many sectors are, unquestionably, booming. Today’s labor market has 1.9 open jobs for every available worker and the fastest wage growth for rank-and-file workers since the early 1980s. That’s especially true for lower-wage occupations in fields such as leisure and hospitality.The State of Jobs in the United StatesJob gains continue to maintain their impressive run, even as government policymakers took steps to cool the economy and ease inflation.May Jobs Report: U.S. employers added 390,000 jobs and the unemployment rate remained steady at 3.6 percent ​​in the fifth month of 2022.Slowing Down: Economists and policymakers are beginning to argue that what the economy needs right now is less hiring and less wage growth. Here’s why.Opportunities for Teenagers: Jobs for high school and college students are expected to be plentiful this summer, and a large market means better pay.Higher Interest Rates: Spurred by red-hot inflation, the Federal Reserve has begun raising interest rates. What does that mean for the job market?Against that backdrop, fewer students are opting to continue their education. The latest enrollment figures, released in May by the National Student Clearinghouse Research Center, showed that 662,000 fewer students enrolled in undergraduate programs this spring than had a year earlier, a decline of 4.7 percent.Community college enrollment is also way down, having fallen by 827,000 students since the start of the pandemic. The decline is likely partly demographic, and partly a result of choices made during the pandemic.The shift to online learning was challenging for many students, and, just as schools were allowing students back into the classroom, the job market heated up and opportunities suddenly abounded. Inflation began to ratchet up at the same time, making earning money more critical as the cost of rent, gas and food climbed. That confluence of factors is likely keeping many students from continuing to pursue their education.Gabby Calvo, 18, left the business administration program at Nashville State this year. She said she did not know what she wanted to do with the degree, and had begun making good money, $21 an hour, as a front-end manager at a Kroger grocery store. The job was an unusual one for someone her age to land.“They didn’t really have anyone, so they took a chance on me,” she said, explaining that nobody else stood ready to fill the position and she had worked closely with the person who held it previously.Teenagers are often finding they can land positions they might not have otherwise as companies stretch to find talent, and teenage unemployment is now hovering near the lowest level since the 1950s.Ms. Calvo is hoping to work her way up to the assistant store-manager level, which would put her in a salaried position, and thinks she has made the prudent choice in leaving school, even if her parents disagree.“They think it’s a bad idea — they think I should have quit working, gone to college,” she said. But she has made enough money to put her name on a lease, which she recently signed along with her boyfriend, who is 19 and works at the restaurant in a local Nordstrom.“I feel like I have a lot of experience, and I have a lot more to gain,” Ms. Calvo said.The question, then, is how people like Ms. Calvo will fare in a weaker labor market, because today’s remarkable economic strength is unlikely to continue.The Fed is raising rates in a bid to slow down consumer demand, which would in turn cool down job and wage growth. Monetary policy is a blunt instrument: There is a risk that the central bank will end up pushing unemployment higher, and even touch off a recession, as it tries to bring today’s rapid inflation under control.That could be bad news for people without credentials or degrees. Historically, workers with less education and those who have been hired more recently are the ones to lose their jobs when unemployment rises and the economy weakens. At the onset of the pandemic, to consider an extreme example, unemployment for adults with a high school education jumped to 17.6 percent, while that for the college educated peaked at 8.4 percent.The same people benefiting from unusual opportunities and rapid pay gains today could be the ones to suffer in a downturn. That is one reason economists and educators like Ms. Jackson often urge people to continue their training.“We worry about their long-term futures, if this derails them from ever going to college, for a $17 to $19 Target job. That’s a loss,” said Alicia Sasser Modestino, an associate professor at Northeastern University who researches labor economics and youth development. Still, Ms. Sasser Modestino said that taking high-paying jobs today and pursuing training later did not have to be mutually exclusive. Some people are getting jobs at places that offer tuition assistance while others can work and study at the same time.Other students, like Ms. Calvo, might use the time to figure out what they want to do with their futures in ways that will leave them better off in the long run.Plus, the economy could be shifting in ways that continue to keep workers in high demand. Baby boomers continue to age, and immigration has declined sharply during the pandemic, which could leave employers scrambling for employees for years. If that happens, degrees and certificates — labor market currency for much of the past two decades — may prove less essential.Luemettrea Williams, who holds down three jobs in order to pay her tuition and other bills, at her job in a doctor’s office in Nashville in May.Laura Thompson for The New York Times“There comes a point at which there are so few high school graduates to play with that you have to give your pool cleaner a raise,” said Anthony Carnevale, the director of Georgetown University’s Center on Education and the Workforce. Plus, Mr. Carnevale said, economic policies coming out of Washington could add to the need for high-school-educated workers for a time. President Biden’s infrastructure bill, passed last year, is expected to create jobs in construction and other fields as it directs investment toward bridge rebuilding and airport and port upgrades.“We’re about to go through an era when you don’t need to go through college. That’s going to be a popular story,” he said.Even before the pandemic, people were increasingly questioning the value of a college education. Many people do not complete their degree or certificate programs, leaving them without improved job prospects and often crushing student loan burdens. And higher education alone is not a panacea: Some certificates and qualifications confer much greater labor market benefits, while others offer a smaller wage premium.But data and research continue to suggest that staying in school benefits workers over the long run. Unemployment is consistently lower for people with college degrees, and wages increase notably as education levels climb. The typical worker with only a high school diploma earned $809 a week in 2021, while one with a bachelor’s degree earned $1,334.“The high school job market has been declining since 1983,” Mr. Carnevale said. His research has shown that after the early 1980s, degree holders began to widen their lifetime earnings advantage.The economic resiliency that comes with education is what Luemettrea Williams is banking on. Ms. Williams, 34, has recently transferred to Nashville State as a nursing student.She had been working for years as a medical assistant in a doctor’s office, but got the job because she already knew the doctor; she did not have the relevant credential. Early in the pandemic, the doctor asked her what she would do if he retired, and she realized it was time to return to school. She is working three jobs to pay her tuition, along with her rising gas and grocery bills. She and her 9-year-old daughter have moved in with her aunt, but Ms. Williams is confident she’ll end up with a sturdy career at the end of her two-year program.“That is No. 1: being able to have a stable income where I don’t have to work three jobs to make ends meet,” Ms. Williams said. “I just have to get through these two years, and my life will change.” More

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    College Graduates Find Booming Job Market a Year After Pandemic Lows

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    Seniors and graduates are again in demand as companies revive recruiting, underscoring the economic premium that comes with a diploma.Trevaughn Wright-Reynolds, a senior at Colby College in Maine, expected a lengthy job search when he returned to campus in August. “I wasn’t sure how much interest I was going to get,” he said. “I didn’t know what to think of the job market.”It didn’t take him long to find out. By September, he was in the final round of interviews with several suitors, and on Oct. 1, Mr. Wright-Reynolds accepted a position with a proprietary trading firm in Chicago. “I didn’t think I would get an offer this quickly,” he said.For many college students, the pandemic’s arrival last year did more than disrupt their studies, threaten their health and shut down campus life. It also closed off the usual paths that lead from the classroom to jobs after graduation. On-campus recruiting visits were abandoned, and the coronavirus-induced recession made companies pull back from hiring.But this year, seniors and recent graduates are in great demand as white-collar employers staff up, with some job-seekers receiving multiple offers. University placement office directors and corporate human resources executives report that hiring is running well above last year’s levels, and in some cases surpasses prepandemic activity in 2019.“The current market is great for employment,” said Lisa Noble, director of employer partnerships and emerging pathways at Colby. “There was a lot of trepidation for companies in 2020. People wanted to see how things would work out and were stalling.” Since June 1, Ms. Noble has had discussions with 428 employers, compared with 273 in the same period last year.Much of the recruiting is taking place virtually, as are job fairs and even many internships. But the reliance on virtual platforms like Zoom and Microsoft Teams for interviews, job offers and eventually welcoming new hires aboard hasn’t dimmed enthusiasm among employers.“The appetite for college labor is strong right now, whether it’s student positions, or part time, all the way through entry-level jobs,” said Jennifer Neef, director of the Career Center at the University of Illinois Urbana-Champaign.That appetite at this stage of the pandemic — when overall U.S. employment remains more than five million jobs below the level in early 2020 — underscores the longstanding economic premium for those with a college education over holders of just a high school diploma.The unemployment rate for all workers with a college degree stood at 2.8 percent in August, compared with 6 percent for high school graduates with no college. Among workers 22 to 27, the jobless rate in June was 6.2 percent for those with at least a bachelor’s degree and 9.6 percent for those without one, according to a study by the Federal Reserve Bank of New York.“We’ve seen a bifurcation in the labor market recovery,” said Gregory Daco, chief U.S. economist at Oxford Economics. “College graduates were less affected by job losses and have seen a faster rebound while people with high school diplomas or less witnessed a much more serious decline in employment opportunities during the Covid crisis.”What’s more, the spread of the Delta variant of the coronavirus has been a one-two punch for those lacking a college degree, hitting the sectors they depend on the most, like restaurants and bars, hotels and retail businesses. By contrast, white-collar employers are thriving.Office work can also be done remotely, a key advantage over face-to-face jobs dealing with consumers that frequently employ less-educated workers. In many cases, the new hires will rarely set foot at corporate headquarters, with orientation and full-time work mostly taking place online.And the courtship rituals of recruiters haven’t changed, even if everything is done over the internet.“It’s back to business as usual,” said Wendy Dziorney, global university hiring leader at HP Inc. The company plans to hire 315 graduates of the class of 2021 in the United States, compared with 126 from the class of 2020 and 210 in the class of 2019.Fall marks the peak of the recruiting season on campus, with interviews and full-time offers for seniors, while internships beckon for sophomores and juniors.Students in search of jobs and internships gathered to listen to recruiters from a consulting firm at Colby College last week.Tristan Spinski for The New York Times“October is our busiest month,” said Jennifer Newbill, director of university recruitment at Dell Technologies. Her company has extended full-time offers to more than 1,300 graduates this year, up 60 percent from 2020.Recruiters of students in the hottest majors — including engineering, computer sciences, accounting and economics — find themselves butting up against one another for the same candidates.“I’ve been with the firm 26 years and I’ve never seen it this competitive,” said Rod Adams, talent acquisition and onboarding leader at PwC, the accounting and consulting firm. “It’s not just our direct competitors but also tech firms, big industry, banks and investment companies.”For this year, PwC plans to extend offers for internships and full-time jobs to 12,000 people, up 15 to 20 percent from 2020 and 10 percent above 2019 levels. Like many employers, PwC is approaching students earlier and trying to get top candidates to make a commitment as soon as possible.The interviewing process used to extend through November, but Mr. Adams hopes to get offers out by the middle of this month and to hear back from candidates by Thanksgiving. “We are moving faster, and the moment students set foot on campus, they start hearing from us,” Mr. Adams said.PwC is using a hybrid approach to recruiting, with Mr. Adams and his team visiting a few campuses in person while contacting many more virtually. “It allows us to extend our reach,” he said.In particular, the company has made an effort to pursue students from historically Black colleges and universities, recruiting from 35 of these institutions; five years ago, it recruited from seven.The rise in campus hiring means more choices for some current students as well as belated help for the pandemic-hit class of 2020, said Annette McLaughlin, director of the Office of Career Services at Fordham University.“Activity is up significantly from last year and is about 10 percent higher than it was before the pandemic,” she said. “It’s likely that students will get multiple offers and they will have to choose.”“The current market is great for employment,” said Lisa Noble, director of employer partnerships and emerging pathways at Colby.Tristan Spinski for The New York TimesThe rebound is also benefiting recent Fordham graduates like Jonah Isaac, who finished school in May 2020, two months after the pandemic struck. Several companies withdrew offers, and Mr. Isaac, a business administration major, spent a year interviewing for spots that never materialized until a Fordham alumnus helped him get a sales development job with Moody’s Analytics in June 2021.“It was a huge hit for many students, and not getting anything was demoralizing,” said Mr. Isaac, a Chicago native who was a wide receiver on Fordham’s football team. “I’d get to the third or fourth interview, and they’d say, ‘Sorry, we’re going in another direction.’”Members of the class of 2021 have had an easier time. Brittanie Rice, a Spelman College graduate, landed a job at Dell after working as an intern the summer before. “I felt lucky,” she said. “A lot of my friends had cancellations left and right, but my internship went on.”Ms. Rice was a computer science major, an especially sought-after concentration for many big employers. But Ms. Newbill, the university recruitment director for Dell, said her company was also hiring students majoring in nontechnical fields — like philosophy and journalism — for sales positions. “Sales is about the personality, not the degree,” she said.Still, graduates in STEM-related fields are having the most success.Manuel Pérez, 23, is two months into his job as a data analyst at Accenture, which led him to move to Nashville after graduating from the University of Puerto Rico, Mayagüez.Mr. Pérez, an information systems major, said he attended a virtual job fair last October and applied to work at Accenture after meeting with recruiters over Microsoft Teams. After three rounds of interviews, he received a job offer in March and started his position in the summer.“I had other job offers, but they all wanted me to start immediately, and I wanted to graduate first,” said Mr. Pérez, from Camuy, P.R. “I feel the job demand has grown, with more people demanding better pay, in every sector from retail to white-collar jobs.”Mr. Wright-Reynolds, the Colby senior, is studying statistics with a minor in computer sciences. A native of Medford, Mass., he will start at the trading firm in Chicago in August.“This was a great opportunity, and I couldn’t go wrong in accepting it,” he said. “I feel like a weight is off my shoulders. I have a lot more time to enjoy senior year.” More

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    Biden $1.8 Trillion Plan: Child Care, Student Aid and More

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    The proposed American Families Plan would expand access to education and child care. It would be financed partly through higher taxes on the wealthiest Americans.WASHINGTON — The Biden administration on Wednesday detailed a $1.8 trillion collection of spending increases and tax cuts that seeks to expand access to education, reduce the cost of child care and support women in the work force, financed by additional taxes on high earners.The American Families Plan, as the White House calls it, follows the $2.3 trillion infrastructure package President Biden introduced last month, bringing his two-part package of economic proposals to just over $4 trillion. He will present the details to a joint session of Congress on Wednesday evening.The proposal includes $1 trillion in new spending and $800 billion in tax credits, much of which is aimed at expanding access to education and child care. The package includes financing for universal prekindergarten, a federal paid leave program, efforts to make child care more affordable, free community college for all, aid for students at colleges that historically serve nonwhite communities, expanded subsidies under the Affordable Care Act and an extension of new federal efforts to fight poverty.Administration officials cast the plan as investing in an inclusive economy that would help millions of Americans gain the skills and the work flexibility they need to build middle-class lifestyles. They cited research on the benefits of government spending to help young children learn. In a 15-page briefing document, they said the package would help close racial and gender opportunity gaps across the economy.Many of the provisions, like tax credits to help families afford child care and a landmark expansion of a tax credit meant to fight child poverty, build on measures in the $1.9 trillion economic rescue plan Mr. Biden signed into law last month. The package would make many of those temporary measures permanent.But the plan also includes a maze of complicated formulas for who would benefit from certain provisions — and how much of the tab state governments would need to pick up.The package could face even more challenges than the American Jobs Plan, Mr. Biden’s physical infrastructure proposal, did in Congress. The president has said repeatedly that he hopes to move his agenda with bipartisan support. But his administration remains far from reaching a consensus with Republican negotiators in the Senate.Republicans have expressed much less interest in additional spending for education, child care and paid leave than they have for building roads and bridges. They have also chafed at the tax increases Mr. Biden has proposed, including the ones that will help pay for his latest package.The president is proposing an increase in the marginal income tax rate for the top 1 percent of American income earners, to 39.6 percent from 37 percent. He would increase capital gains and dividend tax rates for those who earn more than $1 million a year. And he would eliminate a provision in the tax code that reduces capital gains on some inherited assets, like vacation homes, that largely benefits the wealthy.Mr. Biden would also invest $80 billion in personnel and technology enhancements for the I.R.S., in hopes of netting $700 billion in additional revenues from high earners, wealthy individuals and corporations that evade taxes.Republicans and conservative activists have criticized all those measures. Administration officials told reporters that the president would be open to financing the spending and tax credits in his plan through alternative means, essentially challenging Republicans to name their own offsets, as Mr. Biden did with his physical infrastructure proposal.Still, many of the details in his new proposal poll well with voters across the political spectrum. Much of the package could win the support of the full Democratic caucus in Congress, which would need to band together to pass all or part of the plan through the fast-track process known as budget reconciliation, which bypasses a Senate filibuster.Expanded access to government-subsidized preschool and community college may have broad appeal. Workers with only high school degrees are often stuck in low-wage jobs, and two-thirds of mothers with young children are employed, and thus need reliable child care. The high cost of quality day care and pre-K puts these services out of reach for many families, who may rely on informal networks of relatives and neighbors who are untrained in early education.Expanding access to pre-K has been particularly popular over the past decade in states and cities, including some with Republican governors. A large body of research shows that achievement gaps between poor and middle-class children emerge in the earliest years of childhood and are present on the first day of kindergarten. Administration officials contend that free, quality early childhood education can both help cash-strapped parents and build students’ skills in ways that will help them become more productive workers.Still, there are major disagreements about how generous any expansion of pre-K should be. President Barack Obama’s administration generally favored a centrist approach in which new seats were geared toward lower-income families.Mr. Biden’s plan differs in that it calls for universal preschool for all 3- and 4-year-olds, including those from affluent families. That is the same approach pioneered in recent years by city programs in New York and Washington, which expanded quickly to serve a diverse swath of families, but not without some evidence that they replicated the segregation and inequities of the broader K-12 education system.Bruce Fuller, a professor of education at the University of California, Berkeley, has been a critic of the universal approach, instead favoring more targeted programs. He questioned whether states would do their part to fund the expansion and said the goal of paying all early childhood workers $15 per hour was too modest to broadly improve the quality and stability of the work force.“How governors weigh these competing priorities, ethically and politically, remains an open question,” he said.The proposed investment from Washington comes at a precarious time. Preschool enrollment declined by nearly 25 percent over the past year, largely because of the coronavirus pandemic. As of December, about half of 4-year-olds and 40 percent of 3-year-olds attended pre-K, including in remote programs. And only 13 percent of children in poverty were receiving an in-person preschool education in December, according to the National Institute for Early Education Research.Unlike the preschool proposal, the child care plan is not universal. It would offer subsidies to families earning up to 1.5 times their state’s median income, which could be in the low six figures in some locations. It would also continue tax credits approved in the pandemic relief bill this year that offer benefits to people earning up to $400,000 a year.As with Mr. Biden’s previous policy proposals, the American Families Plan offers something to many traditional Democratic Party constituencies. The administration is closely tied to teachers’ unions, and while many early childhood educators are not unionized, the proposal also calls for investments in K-12 teacher education, training and pay, which are all union priorities. One goal is to bring more teachers of color into a public education system where a majority of students are nonwhite.The expansion of free community college would apply to all students, regardless of income. It would require states to contribute to meet the goal of universal access, senior administration officials said on Tuesday. Mr. Biden would also expand Pell grants for low-income students and subsidize two years of tuition at historically Black colleges and universities, as well as at institutions that serve members of Native American tribes and other minority groups.Mr. Fuller said he expected the community college proposal to effectively target spending to the neediest students. About one-third of all undergraduates attend public two-year colleges, which serve a disproportionate number of students from low-income families.The paid leave program will phase in over time. The administration’s fact sheet says it will guarantee 12 weeks of paid “parental, family and personal illness/safe leave” by its 10th year in existence. Workers on leave will earn up to $4,000 a month, with as little as two-thirds or as much as 80 percent of their incomes replaced, depending on how much they earn.Other provisions include late concessions to key Democratic constituencies. Administration officials had removed the health care credits last week but added them back under pressure from Speaker Nancy Pelosi of California and others. They bucked pressure from House and Senate Democrats to make permanent an expanded child tax credit created by the pandemic relief bill, extending it through 2025. But the plan would make permanent one aspect of the expanded credit, which allows parents with little or no income to reap its benefits regardless of how much they earn. More