Biden Plans to Cancel 1 Billion Dollars Of Student Loans Debt.
Start writing a post

Biden Plans to Cancel 1 Billion Dollars Of Student Loans Debt.

This legislation demands urgent action.

Biden Plans to Cancel 1 Billion Dollars Of Student Loans Debt.

According to the Associated Press, President Joseph Biden stated last month that he is considering taking executive action to provide federal student loan debt relief to borrowers nationwide. The proposal has full American support but bitterly divides Congress over its passage.

Indebted students in the United States remain hopeful about the eventual cancellation of their debt. They have received the news with a sigh of relief. The passage of this bill will be a milestone. Above all, it will show that the United States bails out Wall Street, College and university students alike.

Yet, politics gets in the way. Democrats proposed student debt relief; Republicans opposed it. The latter claims that the bill is regressive and poorly targeted; it will not stimulate the economy and create the wrong incentive. They also claim that student loan cancellation is unfair and costly because taxpayers will have to pick up the tab.

Democrats, on the other hand, see student loan cancellation as the right step in the right direction. Experts say that student loan forgiveness will stimulate the economy and save a generation of borrowers from financial ruin. It will also benefit minorities and low-income people. American society will become more productive. For instance, the forgiven loan payments get spent or invested in the market, thereby generating a tremendous boost to the economy.

Despite all the predicted economic benefits that student loan forgiveness could provide, the issue that puzzles the critics of this bill is how to make up for such a colossal debt payment. Well, Democratic Senators Bernie Sanders of Vermont and Elizabeth Warren of Massachusetts have a plan. Sanders says he'll create a "Wall Street speculation tax," taxing stock, bond and derivative trades. In turn, Warren suggests taxing the rich.

Meanwhile, New York Sen. Chuck Schumer said: "more than 43 million Americans are crushed under more than $1.5 trillion in federal student loan debt."

But President Biden has rejected the idea of canceling 50,000 dollars in student debt per individual borrower. His plan supports only 10,000-dollar loan forgiveness. It appears that Biden's proposal conflicts with that of Schumer, Warren and Sanders, the three major sponsors of the bill, who advocate for a debt relief five times larger than the president's.

Students from low-income backgrounds struggle the most even before their loans become a problem. They often miss out on the benefits that their degrees should offer. They, sometimes, find themselves doing menial labor, performing security duties, or flipping burgers at some fast-food restaurant. Unable to make ends meet, they get defaulted on their loans or manage their meager income to make student loan payments, which dive them deeper into poverty and debts.

According to Investopedia, 54 percent of college attendees have taken on debt to pay for their education. Also, the average amount of student loan debt per borrower totals 37,584 dollars, and 6.5 percent of student debt 90 days past due or in default.

Until now, nothing is conclusive about student debt relief. In the meantime, while negotiations are underway, borrowers are waiting full of confidence for its passage. If Congress refuses to legislate on this proposal, President Biden has the authority, if the constitution allows it, to use the executive order to pass this bill.

When it materializes, this human gesture, so long overdue, will put the United States almost on track with Western European countries and even Libya, a North African country, where education is free. Unlike the United States, free education in those countries is a right, not a privilege; student debt forgiveness is unheard of; in short, it is a laughing matter. In passing, the United States is the only industrial country that left its indebted students like orphans in limbo.

Ultimately, Democrats and Republicans need to reconcile their differences for the final passage of the proposed student debt relief. This legislation demands urgent action. Senators and Congressmen, act now in the interest of growth, family and the country. What always remains true is that in politics or life in general, "charity begins at home."

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
Student Life

100 Reasons to Choose Happiness

Happy Moments to Brighten Your Day!

A man with a white beard and mustache wearing a hat

As any other person on this planet, it sometimes can be hard to find the good in things. However, as I have always tried my hardest to find happiness in any and every moment and just generally always try to find the best in every situation, I have realized that your own happiness is much more important than people often think. Finding the good in any situation can help you to find happiness in some of the simplest and unexpected places.

Keep Reading...Show less

Remember The True Meaning of Christmas

“Where are you Christmas? Why can’t I find you?”

A painting of the virgin Mary, the baby Jesus, and the wise men

It’s everyone’s favorite time of year. Christmastime is a celebration, but have we forgotten what we are supposed to be celebrating? There is a reason the holiday is called Christmas. Not presentmas. Not Santamas. Not Swiftmas. Christmas.

boy standing in front of man wearing santa claus costume Photo by __ drz __ on Unsplash

What many people forget is that there is no Christmas without Christ. Not only is this a time to spend with your family and loved ones, it is a time to reflect on the blessings we have gotten from Jesus. After all, it is His birthday.

Keep Reading...Show less
Golden retriever sat on the sand with ocean in the background
Photo by Justin Aikin on Unsplash

Anyone who knows me knows how much I adore my dog. I am constantly talking about my love for her. I attribute many of my dog's amazing qualities to her breed. She is a purebred Golden Retriever, and because of this I am a self-proclaimed expert on why these are the best pets a family could have. Here are 11 reasons why Goldens are the undisputed best dog breed in the world.

Keep Reading...Show less

Boyfriend's Christmas Wishlist: 23 Best Gift Ideas for Her

Here are the gifts I would like to ask my boyfriend for to make this season unforgettable.

Young woman opening a Christmas gift

Recently, an article on Total Sorority Move called 23 Things My Boyfriend Better Not Get Me For Christmas, was going around on social media. I hope the author of this was kidding or using digital sarcasm, but I am still repulsed and shocked by the lack of appreciation throughout this article. I would like to represent the girlfriends out there who disagree with her standpoint -- the girlfriends who would be more than happy to receive any of these gifts from their boyfriends.

Keep Reading...Show less
Two teenage girls smiling

The 2000s were a time that many young adults today can look back on, joyfully reminisce and somewhat cringe at the trends and the fads that we all used to love and adore. Here's a list of things from the golden 2000s that will have one feeling nostalgic about all of those times.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments