The Biden administration announced it would automatically cancel education debt for 804,000 borrowers, for a total of $39 billion in relief.
The Biden administration announced it would automatically cancel education debt for 804,000 borrowers, for a total of $39 billion in relief.
This seems to be on a much smaller scale than the initial plan, if I’m reading this correctly, and targets folks really in need. Mainly this seems to be targeting people who have decades old debt because they literally can’t afford to pay back their loans - which seems totally fair. Many students took out loans with the promise from their peers and guardians that “college will be a worthwhile investment and you’ll make your money back”. That was obviously a lie for these borrowers as the price of tuition and stagnation of wages has guaranteed that promise is dead. This will ultimately be good for the economy and is an example of government working to help the people - so Republicans will hate it.
They should just allow bankruptcy to eliminate student debt like other debt. We have debt amnesty for the needy under virtually any other circumstance except this one.
People go “but people will just go to college then declare bankruptcy!” – I mean, they could do the same for medical debt but most people want to have a credit card, a car, or a mortgage in 7 years if they’re on the path to the middle or upper class so most people try to pay their debt.
Using that process also solves the problem of taking money from the poor who work and never went to college and potentially handing it to the rich who just havent paid off their student loans yet.
I want to agree but at the same time can see a major flaw that we need to think about and fix.in a fair way.
Other loans assess the person taking it out and their ability to repay. Under that assesment who would loan to students who have no job yet (I know both sides are being promised college is good for pay). If you didn’t immediately get a job out of college then you go bankrupt and they can’t reposes the knowledge and so the price would have to go up for those that do get good job and don’t drop out and go bankrupt.