President Biden, Vice President Harris, and the U.S Department of Education have announced a three-part plan to help those working, middle-class, federal loan borrowers. This plan is supposed to help those transiton back into normal payment as the pandemic support is starting to decrease.
Part 1 includes one final extension of the student loan repayment pause. Ever since Biden took office, those with a ferderal loan have not had to spend a single dollar on student loans due to Biden's extensions. Biden is pushing one more extension which puts resuming payments into January 2023.
Part 2 includes the U.S. Department of Education providing up to $20,000 in debt relief to Pell Grant recipients with loans by the Department of Education and up to $10,000 in debt relief to non-Pell Grant recipients. People are eligible for this relief if their individual income is less than $125,000 and if their household income is less than $250,000.
Part 3 includes a "rule" to make the student loan system more manageable for current and future borrowers. This rule require borrowers to pay no more than 5% of their discretionary income monthly on undergraduate loans, raise the amount of income that is considered non-discretionary income, forgive loan balances after 10 years of payments, and cover the borrower's unpaid monthly interest.
I personally think that this plans has both pros and cons. Some people say that this plan might help boost the economy, and others say that it will worsen things by putting the U.S. into further national debt. One of the major concerns is that this plan is just a temporary bandage for inflated college costs. One of the major positives about this plan is that it might help students reach "milestones" and create a much more productive society. Overall, the Biden-Harris Administration is trying to work quickly to implement this plan.
What are your personal thoughts about student loan forgiveness?
If this plan is implemented, would you ever apply for this relief in the future?
Do you have a financial plan if you are planning to continue your education after high school?
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Replies
Good topic choice and well done Addison!
I don't think that Biden should relieve student debt. I think it's a good idea but there are people that have already paid their debt off. I think that it is unfair to the people that paid off their student debt already. I think there is a way to keep both people happy, the ones that paid their debt off and the ones that hasn't yet.
I think this is a bad plan because it will cause our nation to go further into debt. Not all people get student loans because they pay for their own college by working. It is not fair for the students that don't take out loans and I would not apply for the relief. I do have a financial plan for college.
I think it would be nice to have your student loans reimbursed but I think it would cause more problems than not. I think it will cause taxes to go up and it wouldn't be fair to everyone else who has paid off the debt, even if he gives money back to them. I think if it is your loans then you should have to pay them.
I think that it is a good idea because you have to pay a certain amount of money to stay in college and that makes it harder than normal becaue you have to learn make money and not be late on your rent for college. I will not apply because I am not going to go to college because I hate school as it is.
I don't think that college should be that expensive in the first place, but I think that if you make the choice to go, that it is your responsibility to take on the cost. I think that Biden's plan will only be good for the people who it directly effects, but I think that it will cause other people to struggle with the higher taxes. Personally, I think that his plan will worsen the economy because it is still people paying for the overpriced college, and it is just worsening people's taxes. This plan will only be effective for a little bit, and eventually make things worse.
I agree that it's your responsibility to get a financial plan if you're making the choice to attend college.
In my opinion, forgiving student loans is way too short-sighted to be effective. This is because the plan will cost tax-payers and the government way too much money, so eventually the plan will probably just be dropped because of the costs. Instead of loan forgiveness, which could cause inflation of college costs, the government should be putting that money to create colleges with free education. Although the education would be free, they should still charge living expenses for students living in dormatories. This could benefit everyone, the government would get money and students wouldn't be burdened with so much debt. If this plan is implemented, I would probably apply for it, so I wouldn't need to pay so much money for education.
I see the good in it but I do not think it is a good idea because the tax-payers pay too much money. I think that they are just going for a quick fix instead of planning something out to help the future generation.
I agree that they could do something more to help those in the future.
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