As the amount of student debt in the U.S. climbs to over $1.7 trillion, students each year are plunged into debilitating debt. President Biden campaigned on a promise of cancelling $10,000 in student debt for every single borrower, but so far his administration hasn’t moved to do so. Economists and activists say, even if he does cancel a portion of student debt, more must be done to prevent student loans from ballooning again in the future.
Student debt in the U.S. has ballooned to over $1.7 trillion since Congress first allowed college students to borrow from the government in 1958. This debt has varying effects on students, workers and the larger economy.
“We see the student debt crisis when it comes to individual student loan borrowers. We see how student loan borrowers struggle to save for retirement, to have emergency savings, to buy houses, to start small businesses,” Student Borrower Protection Center former executive director Seth Frotman told CNBC.
In the last few years, though, activists from both sides of the aisle have called for the president to do something about student debt. Many have even pushed for outright cancellation.
“It is abundantly clear that under a statute called the Higher Education Act, the president of the United States has the legal authority to cancel federally owned student debt,” said Rep. Mondaire Jones, D- N.Y.
Some argue that debt cancelation isn’t the answer and would mostly benefit wealthier borrowers who don’t have a problem paying off their loans on time.
“If I were to say to you, would you borrow one hundred thousand dollars to go to Harvard Law School, you wouldn’t blink and say yes, that’s clearly a good deal,” Wellesley College economics professor Phil Levine said. “We shouldn’t be absolving those people off their debt. They made an enormous investment that’s going to pay off, really, a lot.”
President Joe Biden has been largely silent about a plan to broadly cancel student debt since taking office, even though he campaigned on canceling up to $10,000 in student debt for all borrowers. However, his administration has absolved some student debt for certain groups like borrowers with disabilities and active duty service members.
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How Soon Could Pres. Biden Cancel Student Debt?
Nobody told some of these people that college was gonna be like it was nobody explains the path to move forward after HS branches out, and many of them were only told College was the next path to move not knowing what was at ahead of them. All they knew was college was the way and when they couldn't move foward or found themselves not knowing what they were doing in school and didnt not see the road ahead and dropped out. We arent teaching kids anything about the complex nature that a stupid college application requires. Some of you proably knew what was ahead and had parents go to college, and their parents. But for many others their parents didn't go to college, or maybe they immigrated and did understand the American school system as well
Why are we not going to community college first if you can’t afford 4 years at a big college? Im at a community college and my first 2 years have only cost me $3,000 which is easily paid for by working a part time job at the same time. That cut what I would have had to pay for student loans by half. Then im not going to go to an ivy league afterwards and try and go to a state college. Also what about the people that already paid their loans and worked hard for that? And they going to get a check?
what do colleges think of student debt cancellation?
Sir what is the best way to make money from crypto trading/stock
Inflation hurts the poor more than the rich… these social programs are just a tax on the dumb and poor.
Does anyone know where the loans come from? The federal student loans come from the surplus in the US Treasury. Oops. There's no surplus. That means the government must borrow the money to fund these loans and us taxpayers pay the interest. If these loans are "canceled", it only means the borrowers don't have to pay them back. The taxpayers have to pay them back in the way of taxes. Private student loans are another issue. The private lenders will not cancel them without being reimbursed by someone.
If you can't afford to pay the loans back, don't borrow the money. That should be taught in high school.
CANCEL all debt AND REVAMP the education system! wtf are we doing we want to have a bright future but if only the small percentage of people can even afford college then the pool of people is great diminished from what it can be.
I worked my way through college, went to a community college then finished at a state school. It took two times longer than average to graduate, but that was the best I could do without incurring debt. I was fiscally responsible. I made good decisions. My family and I made sacrifices. I took the long road, gave up time to get my degree.
How is it fair that some kid that fuked up royally get a free pass? Why should I pay or care that they made bad decisions? Cancel their debt? How about give me a refund.
You want free college? Get good grades and get a scholarship. If you don’t make a lot of money? File for school financial aid. There are already things in place…
if you cancel student dept. how about giving everyone who didn't waste tax dollars on student debt get 100k for you know, not wasting tax dollars.
…as fast as you pay it off babies.
I'm Union with a useless college degree and I still can't get a job. It's a scam
I guess responsible people who paid off their debt are being punished and irresponsible debtors are being rewarded?
As someone who owes on student loans and doesn't meet the minimum amount to pay back. I don't want taxpayers to pay any student loans that are owed. Period. If you took a loan out, you Pay it Back!
I didn't go to college because I couldn't afford it. asking tax payers like me to pay for others that made a bad decision isn't fair.
It's another way of saying "pass the debt on to the tax payer". Anyone who wants this, is just another communist freeloader.
I'm not going to pay for your cancerous liberal arts degree.
Education should be free
Biden is a lier
Student loan debt prevented my wife and I from owning a home for five years. Every mortgage company would not acknowledge that we paid reduced rate on income-based plan. Instead, they would calculate our loans at the standard rate or some percentage, to which I would have to be Walter White to make that kind of money on a teacher’s salary.
They knowingly took on massive student debt and want the Federal govt to cancel the loans? Those loans should have never been approved. Every taxpayer has to pay for it.
You made your bed now lay in it.
Universities spend on sports like it is the US military budget. All requests are met at the cost of other programs. I dont think lowering the tuition hike rate each year will hurt lower income students. It will show the unnecessary spending on administration vacations and sports team waste.
Do my parents or the other people who paid for their educations or loans get a refund check? ?