How Soon Can Student Debt Be Canceled In The U.S.?

As the amount of student debt in the U.S. climbs to over $1.7 trillion, students each year are plunged into debilitating debt. President Biden campaigned on a promise of cancelling $10,000 in student debt for every single borrower, but so far his administration hasn’t moved to do so. Economists and activists say, even if he does cancel a portion of student debt, more must be done to prevent student loans from ballooning again in the future.

Student debt in the U.S. has ballooned to over $1.7 trillion since Congress first allowed college students to borrow from the government in 1958. This debt has varying effects on students, workers and the larger economy.

“We see the student debt crisis when it comes to individual student loan borrowers. We see how student loan borrowers struggle to save for retirement, to have emergency savings, to buy houses, to start small businesses,” Student Borrower Protection Center former executive director Seth Frotman told CNBC.

In the last few years, though, activists from both sides of the aisle have called for the president to do something about student debt. Many have even pushed for outright cancellation.

“It is abundantly clear that under a statute called the Higher Education Act, the president of the United States has the legal authority to cancel federally owned student debt,” said Rep. Mondaire Jones, D- N.Y.

Some argue that debt cancelation isn’t the answer and would mostly benefit wealthier borrowers who don’t have a problem paying off their loans on time.

“If I were to say to you, would you borrow one hundred thousand dollars to go to Harvard Law School, you wouldn’t blink and say yes, that’s clearly a good deal,” Wellesley College economics professor Phil Levine said. “We shouldn’t be absolving those people off their debt. They made an enormous investment that’s going to pay off, really, a lot.”

President Joe Biden has been largely silent about a plan to broadly cancel student debt since taking office, even though he campaigned on canceling up to $10,000 in student debt for all borrowers. However, his administration has absolved some student debt for certain groups like borrowers with disabilities and active duty service members.

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How Soon Could Pres. Biden Cancel Student Debt?

[dodgerm]

Regardless of how you feel about the total cancellation of student debt, if system isn’t reformed to get rid of perverse incentives then it is useless and will just lead right back to where we are now eventually.

[TopAutoRepairs]

Student loan interest is higher than current mortgage rate. Learning shouldn't be this expensive.

[markdc]

Mr Sova’s educational debt of $13k is peanuts compared to what most student’s owe at graduation. He can consider himself very lucky.

[julians]

Most people don’t seem to understand that a profit incentive makes it so the education system is skewed against you, its not about education, its about money

[forgotmyname]

Now let’s make a video that explores why college got so expensive as soon as student loans became a thing, and why student loans are given through private lenders with such high interest rates. This is a corporate greed and revolving political door issue, not an issue with irresponsible students.

[yupitsme]

Stop having these unnecessary classes “ prerequisite classes” and just pay for the classes we need for the degree we want . This will save so much money.

[JasmineAvril]

I’d be happy if they’d cancel my interest and stopped the interest from accruing. I’d be able to afford to pay back what I owe. The interest is the issue for real. If they forgive loans, they need to create a way to stop this from happening again.

[duck]

Or stop government funding, and schools would be forced to reduce there extremely high costs

[Jasa]

If there is a student loan crisis, why does the government continue to give out EVEN MORE loans? Aren't they just making the crisis worse?

[alr]

You cancel student debt, then you need to make public universities meet cost quotas. Canceling student debts give these predatory univerisites a blank check that will screw the tax payer over on the long-run

[bruhx]

The plan to cancel student loan debt is absolutely ineffective when the government continues to sign off on 6-figure loans for teenagers every school year.

[topsecrets]

I was laughed out of car dealerships when I attempted to purchase a car. After a month of assistance from *Credit lord*, I walked into a dealership and purchased a car with no money down!

[disorderling]

Any type of student loan forgiveness absolutely has to accompany limits imposed on colleges and universities on what they can charge. Or it will be a huge handout to the higher education industrial complex.

[blsharpley]

I’m still stuck on the fact that we can spend trillions to bail out Wall Street, banks, and corporations, but canceling student loans is just absurd. As a teacher, I’m never going to be able to pay these back without help

[mrspunk]

Employers also feed into the problem requesting a Masters degree for many jobs that most could probably be trained for with a Bachelors degree or even a associates degree. Getting that Masters degree basically doubles your debt level. Guaranteed student loans should be student grants. Colleges also charge you for everything they can think off . Dorms are over priced as well as meal plans.

[jsouth]

i love how the first guy said he had 13k in student loans upon graduating like that was a lot.

[_Alimm]

When I was in HS teachers, counselors and parents alike shamed and berated teenagers for not wanting to take out a lifetime of loans for an education. Many of caved in to the pressure but I saw through the bs and decided to go to community college then transfer to an affordable four year. I have a degree debt free and although living wage and job market is garbage right now it's less bs on my back. If you can not afford a big name college or college at all DO NOT GO! There are other avenues I promise.

[mattjozwiak]

Taking out a loan to pay for something that won’t make money is what I like to call a POOR INVESTMENT

[tdomonique]

I think what needs to be talked about more is how college really isn’t that needed for a lot of careers. I have a bachelors in Human Resource. I haven’t been able to get a job in HR since I graduated. Every job I’ve had since didn’t require a degree. So I basically picked up student loan debt for nothing. Highschool students need to be exposed to trade schools and certifications/Licenses they can get in certain job fields where they can and will make good money without going into debt. I’m currently taking hours as I speak to get my insurance adjuster license.. where again, a degree is not needed.

[steven]

Student loan debt is the finest birth control ever devised.