Biden’s student loan relief plan sparks discussion over college spending – Scot Scoop News

President Joe Biden has announced a plan to eliminate up to $20,000 in student loan debt for middle-income families.

According studentaid.govindividuals earning less than $125,000 and couples earning less than $250,000 can receive up to $10,000 in debt relief.

The students who are PellGrant recipients and financial assistance to offset their low income will be able to forgive up to $20,000 in student loan debt. Apps are accessible on line to any qualified person.

“A lot of people even put off starting a family because of the cost. Dreams of starting or owning a business are distant with debt hanging over so many people,” Biden said in a statement. speech.

In addition to providing relief to borrowers, the plan also aims to introduce more accountability systems for colleges and universities charging higher tuition fees. The Department of Education publish an annual report on the most indebted schools in the country and demand improvements in the tuition of these schools, according to whitehouse.gov.

“I think it’s a great start to trying to help students with tons of debt,” said John Rowe, a business teacher at Carlmont High School. “Pprivate schools are $40,000 to $50,000 more a year, and you can easily rack up hundreds of thousands of dollars in student debt, so just allowing people $10 or $20,000 in student debt is only a tiny fraction of what they owe.

In recent years, university prices have skyrocketed, which means students have to take out bigger loans. Therefore, many students must devote years of their lives to paying off their debts. According to Pew Research, the COVID-19 pandemic has also put economic pressure on many families, with 9.6 million jobs lost during the pandemic.. Combined with inflationthese problems made it harder for students to pay off their debt.

“The problem is that university costs too much. When I went to Cal Poly San Luis Obispo, it was less than $2,000 a year. Now even public schools are between $10,000 and $20,000 and private schools between $50,000 and $60,000,” Rowe said. “The reality is that they shifted the burden of paying for college education onto people. Normally it would be subsidized by the government, but over the years the government has paid less for the university.

Adam Sundermeyer, a freshman at Embry-Riddle Aeronautical University, thought debt relief was a good idea to fix the loan relief system. However, this would increase the amount of inflation in the economy. According to Cable News Network (CNN), the national debt of the United States is more than 30 trillion. He believes the number will increase with the plan.

“The current loan relief system is almost non-existent as far as I know and fails to cover the huge amount of student loans and the massive cost of college education in modern times. The new plan will help many students “, but I’m concerned about how it might affect inflation and the national debt. If 300 million is spent on loan forgiveness, where else could that huge amount of money have gone? says Sundermeyer .

Rather, it is about what to do to make college more affordable for students, especially low-income students? That’s $10,000 for the average American and $20,000 for a low-income person, but why not go even further?

—John Rowe

Aeon Lem, a freshman at University of California, Berkeley, believed that the plan also had good intentions. Yet he did not sufficiently address the fundamental problem.

“The debt relief program is a step in the right direction, but by no means a solution to the student loan problem,” Lem said. The plan does not address the underlying problem: education is so expensive that students often have to sacrifice their standard of living in exchange for a degree.

Lem also claimed that the plan could have the opposite effect of what is intended.

“Another negative thing about the plan is that it may encourage students to take out more loans because they think another relief plan will happen, undoing the effects of the plan,” Lem said.

Overall, the plan will attempt to address the growing student loan problem, but many believe Biden needs to do more to deal with the tuition itself.

“It’s more of a question: what can we do to make college more affordable for students, especially low-income students? That’s $10,000 for the average American and $20,000 for a low-income person, but why not go even further? said Rowe.

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