Why can’t the U.S. fix student debt already?
The Biden administration has just made another extension on the payment of student loans.
President Biden announced on April 6 that his administration would once again suspend student loan payments till Aug. 31. This is the sixth extension since the COVID-19 pandemic began.
This begs the question, why not just cancel student loan debt entirely?
The federal government has been seeming to do just fine without the $1.7 trillion debt held by Americans. Two years without having student debt doesn’t seem to have hurt the federal government in any way I can discern.
Other Democrats call for the Biden administration to wipe the slate clean. Senate Majority Leader Chuck Schumer along with a few other Democratic lawmakers issued a press release that called for President Biden to cancel the student debt altogether.
I don’t disagree with them. Student debt is a cloud that follows many around for decades after they graduate.
Melanie Hanson from the Education Data Initiative reported in 2021 that the average student borrower takes 20 years to pay off their loans.
“The average medical school graduate’s salary is not sufficient to make their student loan payments,” reported Hanson.
The first profession I think of when I think of making money and living comfortably in regard to finances is the medical profession. If they can’t pay off their student loans, how are the rest of us expected to?
I am incredibly lucky to have my parents supporting me through college so I will graduate debt-free, however, there are many who are not as lucky as I am.
Student Loan Hero reports that as many as 46 million Americans have student debt and that around 11.1% of student loans were delinquent or behind on payments.
The University of Washington reported that 34% of the 2020-21 graduates graduated with student debt.
President Biden campaigned on the promise that he would reduce $10,000 per borrower. He still has not fulfilled this promise over a year into his term as president.
I think it is high time that he, at the very least fulfills the promises he made before he was elected.
Student loans shouldn’t be a black cloud following people around for decades after they graduate. No one should have to choose between an education and car insurance or any number of things that are piled onto student loan debt.