Student loan debt is just one of the many factors driving economic and racial disparity in the United States . 1 in 7 Americans currently have student loan debt, which decreases their overall spending power in the economy. The average American doesn’t have $30,000 or more to pay for tuition, housing and books per year for a college or university education —so they have to resort to taking student loans.
Student loan debt has been one of the most controversial and talked about topics in recent years.o ease the burden that paying back student loans places on the average American household, the Biden administration sought to implement a Student Loan Forgiveness program that would see eligible borrowers receiving relief of up to $20,000. Persons who earn less than $125,000 or $250,000 in a joint income household may be eligible for student loan forgiveness. Some people however thought the concept of forgiving student loans was unfair.
Many have argued that they worked hard and paid back their loans, so it is unfair now to provide debt relief — however, they need to be mindful of the several other factors that are present when one is unable to repay their loans. Many individuals struggle to repay their loans because the wage that they’re paid is grossly inadequate to rent or own a home, lease or own a car, have kids, buy groceries, spend on leisure activities and then repay loans — sometimes at rates that eat all of their monthly income. Others have argued that the government needs that money that they loaned to them. The government needs money to fund federal programs but it may be a case that the relief that forgiveness provides these households, increases their purchasing power and in turn increases the amount that lower and middle class borrowers pay in taxes, streamlining to fund federal programs anyway.
Since the introduction of the student loan forgiveness program, the plan has been met with a slew of court cases including that of a lawsuit against the Biden Administration by 6 GOP states, stating that executive powers are being abused. Currently the forgiveness program is on pause but hopefully will be able to continue in the future to provide much needed economic relief. Persons who are finding fault with this program, are those that are economically well-off, supported by two income households, rich parents or maybe by luck with businesses. They cry that the program is unfair but don’t stop to think about how unfair it is that the average American is not able to attend college or receive higher education while being economically disadvantaged for the rest of their lives.
By Khadejra Golding, Reporter