Forgive or Forget? The First Is Better Than Nothing!
Written by: Sushrita Rakshit
Ah, student loans: the elephant in every student’s closet. As a senior inundated with college decisions, cost is one of the first things that comes to mind in choosing top schools. Does one go for prestige, environment, or research opportunities? But, what if ten years down the line, you’re stuck working a 9-5 job trying to pay off the $100,000 you racked up through undergrad? This issue has been a huge let down––this year especially––where rising freshmen were forced to pay the same $20,000 for online courses at local universities when they could get the same college credits from online platforms such as edX and Coursera at more affordable prices. According to current statistics, 43 million borrowers in the U.S. owe $1.6 trillion collectively (NPR). With all the frustration surrounding the entering generation of college freshmen and with current college students stuck paying extra for unavailable facilities, it’s no wonder that so much of GenZ are elated at Biden’s proposed Loan Forgiveness Program.
On January 8th, 2021, President Joe Biden’s officials came out to state that the president was pushing for Congress to immediately cancel $10,000 worth of loans per year for each person struggling with paying existing loans (nerdwallet). Considering the fact that each person may participate in this program for up to 5 years, one may cancel up to $50,000 worth of debt altogether (nerdwallet). According to statistics, Biden’s current proposal is capable of cancelling debt for more than 15 million borrowers, or approximately 30% of the population in federal borrowers (NPR, nerdwallet).
While there are some undecided portions of Biden’s current proposal, here are other ways that one can reduce their student loan debt and through which one may be eligible (nerdwallet):
- Students can attend a public or state university. The exception to this rule is that those attending minority-serving private universities are also eligible.
- Students can use loans to pay off student debt and ultimately get considered for loan forgiveness.
- If you earn less than $125,000 after graduating from university or college.
While the three points listed above seem like the Holy Grail for each student’s federal debt crisis, it’s important to remember that this is only part of the broad student loan forgiveness program. There are smaller subsections that go into much more detail outlining additional qualifications for lessening repayment! Talk about a great deal (nerdwallet)!
Further education is important in the prospect of upward mobility. Students during the pandemic are faced with a harsh choice: do I go to college and drown in debt afterwards, or do I start working now? But even if I do start working now, I won’t earn sufficiently later. Despite all these valid concerns, higher education promotes current generations in attaining higher paying jobs. It is crucial is it can be compared to a grassroots mobilization movement and encourages closing wage gaps between those coming from different racial and socio-economic backgrounds. With Biden's new student loan forgiveness program, students are encouraged to think less about the cost and are able to better focus on their higher education interests and pursue what they want. |
Remember kids, knowledge is power. With old Joe’s new forgiveness program, we might just become the Thanos of our nation.
Sources:
https://www.npr.org/2021/02/20/969800196/biden-tackles-student-loan-debt-forgiveness
https://www.nerdwallet.com/article/loans/student-loans/joe-biden-student-loans#broad-student-loan-forgiveness
https://www.forbes.com/sites/zackfriedman/2020/11/16/biden-student-loan-forgiveness-figures-in-my-plan/
https://www.commercebank.com/personal/ideas-and-tips/2019/got-student-loans-understand-your-repayment-options
https://www.credit.com/personal-finance/average-student-loan-debt/
https://www.nerdwallet.com/article/loans/student-loans/joe-biden-student-loans#broad-student-loan-forgiveness
https://www.forbes.com/sites/zackfriedman/2020/11/16/biden-student-loan-forgiveness-figures-in-my-plan/
https://www.commercebank.com/personal/ideas-and-tips/2019/got-student-loans-understand-your-repayment-options
https://www.credit.com/personal-finance/average-student-loan-debt/