What President Biden and Lawmakers Can Do to Fix the Student Debt Crisis
US student debt has grown to over $ 1.7 trillion since Congress first allowed college students to borrow from the government in 1958. This debt affects students, workers and the economy in different ways.
“We see a student debt crisis when it comes to individual borrowers of student loans. We see student loan borrowers struggling to save for retirement, have urgent savings, buy houses, start a small business, ”he said. Student Borrower Protection Center former chief executive Seth Frothman told CNBC.
In the past few years, however, activists on both sides of the aisle have urged the president to do something about student debt. Many even insisted on a complete abolition.
“It is clear that under a law called the Higher Education Act, the President of the United States has legal authority to cancel federal student debt,” said Rep. Mondair Jones, New York.
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Some argue that debt cancellation is not the answer and will mostly benefit more affluent borrowers who have no problem paying their loans on time.
“If I told you if you would borrow a hundred thousand dollars to go to Harvard Law School, you wouldn’t blink and say yes, it’s definitely a good deal,” said Phil Levin, professor of economics at Wellesley College. “We must not release these people from their debts. They have made huge investments that will really pay off. “
President Joe Biden has remained largely silent on the plan to write off student debt altogether since taking office, even as he campaigned up to $ 10,000 in student debt cancellation for all borrowers. However, his administration has written off student debt for certain groups, such as borrowers with disabilities and active military personnel.
Watch the video above to learn more about the origins of the student debt crisis, the various options the president has explored to reverse it, and many suggestions on how to fix the system in the future.
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