President Biden wants to cancel student loans for people, both democrats and republicans are on opposite sides to this question. Should Biden cancel student loans? Biden’s administration is using strategies such as student debt relief which is to help flaws in the system. Another strategy is the SAVE plan which will improve student loan costs for other students. Requirements for Bidens plan is the borrower has to have paid 5% of their income monthly on student loans.
President Biden would like to cancel student loans in order to get higher education, he says “From day one of my Administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity. I will never stop working to cancel student debt.” The plan would help lower – middle class people be more inclined to getting a higher education due to the financial help that could be received. It also allows a “smooth transition” from effects of the pandemic, this plan is meant to help ease people into repayment of student loans.
However there are some doubts about this plan. For example , an economics professor says that if we approve student loan forgiveness when “consumer spending is already high, it could lead to more inflation.” Another con about Biden’s plan is the forgiveness act doesn’t apply to people that have already paid their debt, which people find unfair. This plan could also make it easy for anyone to sign up, including people who don’t actually need help paying for student loans. People are fairly split on whether or not student loan forgiveness is a good plan.
