In what has seemed like a long time coming, the Supreme Court has struck down President Biden’s student loan forgiveness plan. This ‘promise’ to young voters came from the commander-in-chief as he was campaigning for the 2020 presidential election.
President Biden’s plan focused on canceling up to $20,000 of student loan debt for over 40 million Americans, roughly wiping over a quarter of the country’s $1.7 trillion in outstanding federal student debt.
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The plan, announced by the Biden administration, stated that it would cancel $10,000 in federal student loan debt for those earning less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, typically from lower-income households, were expected to receive an additional $10,000 in debt forgiveness, for $20,000.
According to the White House, less than a month after its initial announcement, more than 26 million people applied, with over 16 million of those applicants having been approved by the Department of Education.
Had it been approved, the debt forgiveness would have gone to borrowers holding general student loans, not private loans.
We here at Valuetainment have actively discussed possible solutions that could help students without making American taxpayers because nothing is free – someone must pay for this student loan “relief,” and it always goes back to the everyday American.
If our current administration cared about students’ loans, then eliminating interest rates from lenders could be a more realistic option.
Cancelling the loans altogether isn’t really feasible given that loans are already implemented within the lenders’ expected revenue. Funds will still be expected – the only difference is that the student who paid asked and used the loan wouldn’t be the one picking up the check.
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