As you most likely already know, Joe Biden has recently announced his new plan on student loan forgiveness. How do people qualify for this, you might ask? The amount of debt forgiven depends on if the student received a pell grant vs. other federal loans to attend college. A pell grant is given to those who show exceptional financial need who haven’t yet earned a bachelors, graduate, or professional degree.
If a person with student loans makes less than $125,000 dollars yearly or couples making up to $250,000, will have up to $10,000 dollars of their debt forgiven or could receive up to $20,000 if they received a pell grant. The application process will be open from November 15th to December 31, 2022. The Department of Education will continue to process applications even after December 31st. After a person with student debt submits their application, the department expects to provide the financial relief within four to six weeks. Since the Department of Education already has 8 million people’s income information available, they would all receive forgiveness automatically.
Biden has already canceled $32 billion dollars worth of federal student debt out of $1.6 trillion dollars. The debt cancellation does come at a price, the cost of raising taxes. Some people think it’s worth it to raise taxes, to provide relief to people drowning in student debt. The debt forgiveness would give individuals and families more financial opportunities. Others think it is the responsibility of the student borrower and not the taxpayers issue to solve.
Do you think student debt should be forgiven?
What is a different solution for the federal student debt to be lower?
https://www.forbes.com/advisor/personal-finance/who-pays-for-student-loan-forgiveness/
https://www.cnn.com/2022/08/24/politics/biden-student-loan-forgiveness-qualify/index.html
Replies
Great topic choice and well done Macy! I would like to have seen more of your thoughts within your summary as well.
bump
I think that student loans shouldn't be forgiven. I believe that it is unfair to those that have paid their debt off because they earned the money to pay it off and students now get to have "free" money to pay it off. If they did choose to forgive student debt they should give at least some money back to those who paid them off.
I totally agree with you, it can be very unfair to people who have already paid their student debt off and recieve no money for that. I also feel like this new plan will entice more people to not pay their student loans off personally.
I think that student loans should not be forgiven because forgiving peoples loans can be unfair if someone has already paid off their debt and they want to be conpansated because others who are not done paying get up to 20 thousand dollars.
You're totally right in my opinion, it's not fair to people who have already paid their student debt off and they recieve no money. Although their classmates could because, they didn't finish paying them off. I think this plan could make lots of people angry who didn't recieve money and others did.
I think that student debt should not be forgiven. If you want to spend money you're paying for it. Other people should not have to pay for it in their taxes. Paying for someones student debt is no different than paying for someones house. It makes no sense, if you want to spend it you have to earn it.
I agree with what you are saying, having the taxpayers pay for someone elses college is like them buying the people with student debt a house. Also it wouldn't be fair, because other people who make less than $125,000 dollars anually who have already paid off their student debt recieve no money back.
I think that this is a bad idea. The money is going to have to come out of someone's pockets. The money will probably come out of the working peoples pockets that have already paid their student debt off. If you can't afford to go to college go to a trade.
I agree with you, other people or taxpayers shouldn't have to pay for someone else's student debt. I also think you're right about if you can't afford college, because it's very expensive people should go to a trade school instead.
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