The student loan forgiveness might make you forgive your student loan, but it completely ignores this major problem.
Here’s what you need to know.
Does the president have the unilateral power to order the cancellation of student loans by decree? It is the legal question that can determine if you get the cancellation of a student loan. President Joe Biden has called on the US Department of Education to conduct a legal review of the president’s power to write off student loan debt. This review could answer that legal question, as well as other potential recommendations on how much student loan debt, if any, to write off, who qualifies, and when student loan cancellation might take. location.
It is somewhat strange that the cancellation of student loans has been reduced to a legal issue. After all, supporters of student loan cancellation say student loan cancellation is a necessary weapon to fight disparities, save young people from a mountain of financial ruin, and pave the way for more Americans to get married, start a family, buy a house and save for retirement. However, Congress apparently cannot pass legislation to cancel student loans. So they put pressure on the president to cancel student loans. Progressives want Biden to write off up to $ 50,000 in student loans, but he’s repeatedly said he thinks $ 10,000 in student loans is the right amount. Naturally, this debate over large-scale student loan forgiveness could spark a political storm. In his first two months in office, Biden canceled $ 2.3 billion in student loans last month, which is within his legal authority and was done in a targeted fashion. First, Biden canceled $ 1 billion in student loans for 72,000 student borrowers, and second, he canceled an additional $ 1.3 billion in student loans for 41,000 totally and permanently disabled borrowers.
Student loan cancellation: ignore this major problem completely
However, while student loan cancellation could make you forgive your student loan, Washington officials are completely ignoring a much bigger problem: the cost of higher education. Isn’t the whole student loan cancellation debate about student borrowers being overcharged for their studies? The cancellation of student loans would provide financial assistance to at least a representative sample of the 45 million student borrowers. However, the one-time forgiveness of student loans does nothing to deal with the increasing cost of higher education. Canceling a student loan does not help student loan borrowers tomorrow or the next day. Rather, large-scale student loan forgiveness helps student borrowers who hold student loans on the day the student loans are canceled. That’s not to say that student loans shouldn’t be canceled. However, if the goal is to ease the financial burden on parents and students, shouldn’t there be a more thoughtful approach to approaching the cost of higher education taking into account the cancellation of student loans?
Some will agree that the cost of higher education is too high and deserves comprehensive reform. Having said that, they also say that higher education reform is a much larger and time-consuming issue that would only delay student loan relief that can be granted immediately. You can call student loan cancellation the “take what you can get” approach. However, given the complexity of the costs of higher education, Congress should deliberate on a comprehensive solution to meet the cost of higher education. Both Democrats and Republicans go to college, so it seems that rethinking how we pay for college in America can find common ground in Congress.
Should college be free?
“Should college be free” is a question that elicits strong reactions from both sides of the aisle. Like student loan cancellation, America will also respond to free college. Some will say it is a late necessity, while others say that a college education is a personal responsibility that should not be borne by taxpayers. However, the question is a starting point for a larger discussion about the cost of college, who pays for it and how it is paid. Biden proposed several ways to overhaul higher education and make the university more affordable, including:
- Make tuition free at two-year public colleges;
- Make tuition free at four-year public colleges
- Student loan forgiveness if you earn less than $ 125,000 and attended a college or public university for two or four years; and
- Student loan forgiveness if you earn less than $ 125,000 and attended a historically black college and university (HBCU) or institution serving minorities (MSI).
Republicans are unlikely to support these plans in their current form, and depending on the amount of federal grants, state governors may oppose them as well. However, if the purpose of canceling student loans is to provide financial aid, then it seems Congress should take a holistic approach to tackling the cost of higher education and engage in serious dialogue on a bipartisan path. to be continued.
Student loan cancellation: next steps
It is possible that the President or Congress will cancel student loans – without simultaneously addressing the cost of higher education – because it is the “easier” thing to do. Millions of student loan borrowers would benefit, although opponents cite many reasons why student loans should not be canceled. For example, nearly 80% of adult Americans do not have a student loan or have not attended college. It is also possible that Congress is attacking the cost of higher education sequentially, rather than simultaneously. For now, America will await the results of the legal review from the US Department of Education. The legal review could provide additional guidance on student loan cancellation, including arguments for and against student loan cancellation; the amount of student debt, if any, to be canceled; who may be eligible for student loan cancellation and other means of providing student loan relief in addition to student loan cancellation. Ultimately, a legal review is not a binding law. While the review may contain recommendations, Biden will make the final decision after weighing political and legal considerations. For reference, the Trump administration determined that the president did not have the existing legal authority to unilaterally cancel student loans. If Biden’s education department comes to the same conclusion, Congress will be charged with the next steps regarding student loan cancellation – a task they have so far largely avoided.
If you are waiting for a student loan cancellation, be aware that it is not guaranteed. So make sure you understand all of your student loan repayment options. Here are a few potential options to consider, all at no cost:
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