Why can’t the US pay off student debt already?
The Biden administration has just granted another extension to student loan repayment.
President Biden announced on April 6 that his administration would once again suspend student loan payments until August 31. This is the sixth extension since the start of the COVID-19 pandemic.
This begs the question, why not just forgive student loan debt entirely?
The federal government seems to be doing just fine without the $1.7 trillion in debt held by Americans. Two years without having student debt does not seem to have hurt the federal government in any way that I can discern.
Other Democrats are calling on the Biden administration to wipe the slate clean. Senate Majority Leader Chuck Schumer, along with a few other Democratic lawmakers, issued a press release calling on President Biden to write off student debt completely.
I don’t disagree with them. Student debt is a cloud that follows many people for decades after graduation.
Melanie Hanson of the Education Data Initiative reported in 2021 that the average student borrower takes 20 years to repay their loans.
“The average medical school graduate’s salary isn’t enough to pay off their student loan,” Hanson said.
The first profession that I think of when I think of making money and living comfortably when it comes to finances is the medical profession. If they can’t repay their student loans, how are the rest of us to deal with it?
I’m incredibly lucky to have my parents supporting me through college so I can graduate debt-free, however, there are many who aren’t as lucky as me.
Student Loan Hero reports that up to 46 million Americans have student debt, and about 11.1% of student loans were in default or late payment.
The University of Washington reported that 34% of 2020-21 graduates graduated with student debt.
President Biden campaigned on the promise that he would cut $10,000 per borrower. He still hasn’t kept that promise more than a year into his term as president.
I think it is high time he at least fulfilled the promises he made before he was elected.
Student loans shouldn’t be a dark cloud that follows people for decades after graduation. No one should have to choose between an education and car insurance or any number of things that pile up on student loan debt.