President Biden to Forgive $6.2 Billion in Student Loans, but Twitter is bursting with these objections.
Here’s what you need to know — and what it means for your student loans.
There’s good news for student borrowers: Biden will forgive $6.2 billion in student loans. While some student borrowers are excited about the opportunity, others have responded on Twitter with less enthusiasm. Here’s a look at some of the criticism surrounding Biden’s latest plan for student loan forgiveness.
Biden to Forgive $6.2 Billion in Student Loans
The US Department of Education has identified 100,000 student borrowers who are now eligible for student loan forgiveness. In total, these student borrowers will get $6.2 billion in student loan forgiveness. These student borrowers will now be eligible to have their student loan forgiven under major changes to the Student Loan Forgiveness Program. As a result, more student borrowers will qualify for student loan forgiveness sooner. Why? The Biden administration will now “count” past student loan payments that were previously deemed ineligible for the $120 monthly payment required for civil service loan forgiveness. For example, this includes payments made for FFELP loans, payments made under the wrong student loan repayment plan, partial student loan payments, and even late student loan payments.
Cancellation of student loan: not everyone is a sympathizer
Here are some of the main objections people raised on Twitter in response to Biden’s announcement to forgive $6.2 billion in student loans:
- “We sacrificed everything to pay our student loans. We didn’t feel like we were entitled to student loan forgiveness.
Some former student loan borrowers disagree with proponents of large-scale student loan forgiveness. Why? These former borrowers may have worked two or three jobs and made significant financial sacrifices to repay their student loans. They may have given up on buying a home, saving for retirement, or starting a family. However, they still repaid their student loans. Their objection is that they sacrificed themselves to pay off student loans, but today’s student borrowers could get a “free pass.”
(Explosive Report Claims This Student Loan Service Deceived Student Loan Borrowers)
2. “Pay off your mortgages instead.
Some people wonder why student borrowers should get their student loan forgiven. Why? They wonder why the federal government does not cancel mortgages or credit card debt. Mortgage debt is the number one consumer debt held by Americans, while student loan debt is a distant second. Credit card debt is also a trillion dollar problem. If the federal government wants to encourage homeownership, the argument is: why not cancel the mortgage debt of borrowers in financial difficulty?
(Biden could extend student loan payment break indefinitely)
3. “Why should people who didn’t go to college pay off the student loans of those who did?”
About 80% of American adults do not have a student loan. This means they have already paid for them or they have never been to college. The argument goes: Why should people who have never gone to college or can’t afford college pay the student loan debt of those who have? Their argument is based on fairness. This riding feels that subsidizing others who have student loan debt is an unfair financial burden when this riding may have its own financial difficulties.
(Cancellation of a student loan does not mean what you think it means).
Student Loan Forgiveness: Next Steps
Progressive Democrats in Congress are pressing Biden to write off more student loan debt. (6 major changes to student loan relief). With this latest announcement, Biden will have forgiven over $21 billion in student loans. However, progressives want Biden to enact large-scale student loan forgiveness — even with these objections from some Twitter users. For example, Senator Elizabeth Warren (D-MA) said canceling student loans can boost the economy, save a generation from the crush of debt, help borrowers start families, save for retire, buy a home and start a business. It is possible that Biden will enact large-scale student loan forgiveness by the end of the year, although there are no guarantees. There are also questions about who would qualify and how much student loan forgiveness for borrowers. The most immediate issue facing student borrowers is the scheduled end of temporary student loan relief. Absent an extension, federal student loan repayments will resume after May 1, 2022. It is essential that you start preparing now so you are not caught off guard.
Here are some smart ways to save money on your student loans: