Who will be upset if President Biden cancels some student debt?
WASHINGTON — Will he or won’t he? The countdown is on for whether President Joe Biden will forgive student loan debt.
A decision is expected soon.
In 1988, if we adjust for inflation, the average cost of tuition at a public college was around $3,190, according to a College Board analysis.
Currently, it is around $10,740.
Private universities are close to four times more.
That rising tuition rate is well above inflation and is one reason why the typical graduate who borrows has around $30,000 in college debt when they leave college.
“I am considering some debt reduction,” President Biden said recently.
After years of saying he would never forgive debt with an executive order, the president is seriously considering some cancellation.
According to the White House, the exact amount of forgiveness being considered is unclear.
The latest discussed plan includes forgiveness applying to those making under $125,000 a year.
That number may change.
The president said he is expected to announce his decision in a few weeks.
In Washington, progressives say debt forgiveness will be popular and help a lot of people.
While that may be true, it’s also true that many people won’t benefit from the policy and, in turn, won’t view it as favorably.
Some uncertainty will exist over the legal authority regarding the cancellation.
According to data from the Federal Reserve, only around 40% of Americans over the age of 25 have obtained a college degree.
That means 60% of the country has not.
How will those Americans feel about this use of taxpayer dollars?
A recent survey by the Federal Reserve reported that 47% of Americans who had borrowed at one time had completely paid off their loans.
President Biden’s plan is not expected to include any back pay for those that have already finished their payments.
Of course, when you chat with those currently in school, you realize how much of a burden all this pending debt is.
Patrick Milkey worries about life post-law school. He currently attends school in Ohio.
“It is kind of a worry. When I get out, will I make enough money to pay those loans back?” Milkey said.
Even if the president does take action, it will not end the debate.
Critics are expected to sue the president over his authority, which means years of student loan uncertainty may be on the horizon.