Forgive Student Debt? I Don’t Think So, Says Biden
posted by Tyjahn Stokes | February 26, 2021 | In NewsThe internet was in an uproar last week when President Joe Biden went to CNN Town Hall in Milwaukee, Wisconsin, where a young woman questioned him about a proposal of canceling student debt and responded to the woman saying: ”I will not make that happen.” Twitter responded with chaos last Thursday with users even using Captain America’s meme at the end of Endgame where the elderly Cap refuses to tell the Falcon about his trip back in time with Peggy Carter by saying, “No, I don’t think I will.”
According to CNBC, President Biden is willing to forgive up to $10,000 of debt forgiveness, and he would much rather use legislation to craft the bill rather than an executive order.
Biden even went on and explained why he wouldn’t excuse the debt by saying, “It depends on whether or not you go to a private university or public university,” said Biden. “It depends on the idea that I say to a community, ‘I’m going to forgive the debt, the billions of dollars of debt, for people who have gone to Harvard and Yale and Penn.”
According to Statista.com, people who come out of ivy league schools usually come out with less debt than those who didn’t. People who came out of Columbia University than Princeton University were $18,150 more in student debt. And according to CNBC, students who graduated from an Ivy League school usually end up with the lowest amount of student debt owed.
President Biden even argues that those funds can help young children that come from disproportioned backgrounds for early education. He even had a $50 billion proposal that will allow him to make community college tuition accessible and four years of public university free for people whose parents that make less than $125,000
On the other hand, House and Senate Democrats would much instead Biden forgive up to $50,000 on student debt.
Any debt forgiveness plan or higher education aid plan could have several consequences for everyone.
One possible negatively effect would be this would raise taxes for everyone in the United States. If it does raise taxes, one could ask: “Why am I paying for student debt cancellation, and I made it through college and never dropped out, and I am paying my loans no issue?” Or on the other hand, for people who did not go to college, one could say, “Why am I paying student debt, and I never had a passion or even wanted to go to college?”
Another issue, according to Forbes, is that this wouldn’t stimulate the economy long-term, if even at all. This short-term plan could mess up the economy for at least ten years.
On the other hand, Biden forgiving the loan would be financial freedom for borrowers, and they can buy a home, buy a car, or start a business which may stimulate the economy.
Second, with anxiety and depression affecting many younger people than they ever did in recent years, this would calm anxiety and depression for people who are worried about their increasing debt.
Lastly, it would give a chance for Democrats to be fair to the “other side of America” since billionaires get bailed out with their businesses, which would help even the playing field and give everyone a chance to start anew.
Biden forgiving the loans would help HBCUs help out the Black community by encouraging more Black students to go to college. CNBC said that compared to those who went to college between Black students and white students, African-Americans usually end up owing back $25,000 more. It is understandable why Black students are discouraged from going to college.
Thus this leaves a burning question that could cause a compromise and middle ground: Should our focus shift from forgiving student debt to lowering tuition for education in colleges?
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