For so many students, the weight of having student debt lies heavy on their chest. Some students are lucky enough to go to college for free if they get scholarships, or at some universities, students can go for free if their parents work there. But, a lot of students must live with the burden of getting out of college with student debt that could take years to get rid of. Thanks to the recent move by President Biden to cancel 10,000 dollars of student debt and another 10,000 to students who received pell grants. The question is, however, to who does this apply?
Student debt has been on the rise for years in the United States. Since 2006 student loan debt has more than doubled in that time. According to CNBC, the total student debt in 2006 was $480.97 billion and has increased to over $1.75 trillion. This is affecting a lot of people in America, but there is one group of people that are affected more, and that is Black Americans. When President Biden released his plan to tackle student loan forgiveness, the group of people that he was focused on were people of color. According to ABC news, approximately one in four Black Americans have a negative net worth. By forgiving $10,000, according to the civil rights group National Action Network, the Biden-Harris administration believes that this loan forgiveness will move over half a million from a negative to positive net worth. The Department of Education survey found that Black college graduates owe $25,000 more in student debt on average than white graduates. There is also a point made by President Biden on the White House website that “twenty years after first enrolling in school, the typical Black borrower who started college in the 1995-96 school year still owed 95% of their original student debt”.
The reality of the student loan forgiveness program put forward by President Biden is that many people, no matter what race, class, or gender, will receive help from this program. President Biden claims if all the borrowers use this to their advantage, it will supply relief to up to 43 million borrowers, target relief dollars to low-and middle-income borrowers, and as well advance racial equity. This is the first time the federal government has stepped in to tackle this big issue. There might be some time before people see the loans forgiven, however, because it is likely this Executive Order will be challenged in court. In the meantime, the President paused the payments of student loans until the beginning of next year, which should continue to help take the burden off some people.
To check eligibility & apply for Student Loan Debt Relief visit: Welcome | Federal Student Aid
Sources:
https://www.cnbc.com/2022/09/06/all-we-know-so-far-about-bidens-student-loan-forgiveness-plan-.html
Photo by Tim Gouw: https://www.pexels.com/photo/man-in-white-shirt-using-macbook-pro-52608/
