What President Biden and Lawmakers Can Do to Fix the Student Debt Crisis – News Couple

What President Biden and Lawmakers Can Do to Fix the Student Debt Crisis

Student debt in the United States has ballooned to more than $1.7 trillion since Congress first allowed college students to borrow from the government in 1958. This debt has varying effects on students, workers, and the larger economy.

“We see the student debt crisis when it comes to individual student borrowers. We see how student borrowers are struggling to save for retirement, get emergency savings, buy homes, and start small businesses,” former Executive Director of the Center for Student Borrower Protection Seth Frutman told CNN bad.

But in the past few years, activists on both sides of the main aisle have called for something to be done about student debt. Many have even paid for the outright cancellation.

Rep. Mondair Jones, New York, said

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Some argue that debt cancellation is not the answer and will mostly benefit wealthy borrowers who have no problem paying their loans on time.

“If I told you, ‘Are you going to borrow a hundred thousand dollars to go to Harvard Law School,’ you wouldn’t blink and say yes, that’s obviously a good deal,” said Phil Levine, a professor of economics at Wellesley College. “We shouldn’t forgive these people their debts. They made a huge investment that will pay off, really, a lot.”

President Joe Biden has been largely silent about a plan to cancel student debt on a large scale since taking office, even though he has campaigned to cancel up to $10,000 in student debt for all borrowers. However, his administration has forgiven some student debts to certain groups such as borrowers with disabilities and active duty service members.

Watch the video above to learn more about the origins of the student debt crisis, the various options the president has explored for canceling it and many suggestions on how to reform the system in the future.

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