I Don’t Know if 10-20K is Enough in Terms of Student Loan Forgiveness

For generations, we have been told that the only way to get ahead in life is to earn a college degree. While there is a certain amount of truth in that statement, the other truth is that college is getting more expensive by the day.

Earlier today, President Biden announced a plan for reducing college debt for earners making less than $125K annually. The details are as follows:

Borrowers who hold loans with the Department of Education and make less than $125,000 a year are eligible for up to $20,000 in student loan forgiveness if they received Pell Grants, which are given to students from low- and middle-income families. Individuals who make less than $125,000 a year but did not receive Pell Grants are eligible for $10,000 in loan forgiveness.

Of course, the Republicans are losing their minds. G-d forbid that a politician (especially POTUS) would do something for the American people instead of themselves. This hypocrisy is disturbing given the fact that many of them accepted forgivable PPP loans during the pandemic.

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Though this is a campaign promise fulfilled (and could help the Democrats in the upcoming Midterms), I don’t know if 10-20K is enough to relieve the financial burden for some people. I understand that it was a compromise, as does Biden, but I have to question if it helps Americans who have triple digits in student loan debt.

“I understand not everything I’m announcing is going to make everybody happy,” Biden said. “Some think it’s too much — I find it interesting how some of my Republican friends who voted for those tax cuts think we shouldn’t be helping these folks. Some think it’s too little, but I believe my plan is responsible and fair. It focuses the benefit of middle-class and working families, it helps both current and future borrowers and it’ll fix a badly broken system.”

The truth is that relieving 10-20K is better than nothing. But I still think that it could have been a little higher.

Student Loan Forgiveness Might be the Key to 2022, 2024, and Beyond

We all know that college is the key to our professional future. Without that degree, our careers would be stuck in first gear and our earning potential is stunted. The problem is that the cost of obtaining that status of college graduate has grown exponentially over the past few years and is unlikely to stop anytime soon.

One of the issues that have come to the political forefront lately is student loans. Several Democrats have proposed that President Biden forgive student loans for those earning under $125,000. While the devil is in the details, I think this is important for two reasons. The first is that it would remove the financial shackle for millions of Americans. The second is that it would give Biden and the Democrats an ace up their sleeve when it comes to the midterm elections in the fall and the presidential election in 2024.

My own loans were paid off a long time ago. I understand why some people disagree with this decision. That being said, I can see the potential in the financial freedom that comes from not having thousands of dollars (if not hundreds of thousands of dollars) to pay off hanging over someone’s figurative head.

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