Cancellation of Student Loans: Building Momentum Despite Hurdles

Watered-down or more solid? That's the big question swirling around the idea of breathing more life into calls about forgiving student loans. At the moment, its future remains uncertain due to legal and political obstacles.

Momentum Grows for Debt Forgiveness

Support is growing for wiping out student debt, with both lawmakers and advocates pressing President Biden to do more. Even though the President has expressed his support for forgiving $10,000 of student debt, campaigners are urging him to go as high as $50,000. Such a move could free millions from the burden of debt, opponents argue the cost could be too high and unfair.

The Challenge of Cost

One big problem center stage is the price tag. Student debt cancellation could cost anywhere from $373 billion to almost $1 trillion. It ultimately depends on how much debt gets canceled per person and how many people cancel their debts.

The Legal Battle

The legal route towards student loan forgiveness isn't straightforward either. Some people don't believe the President has the necessary legal authority to forgive student loans on a wide scale. Various lawmakers and legal experts are involved in a debate over whether the president's powers would be overstepped by such an action.

The Issue of Fairness

Another significant challenge revolves around the fairness of student loan forgiveness. Those who disagree with the proposal suggest it wouldn't be fair to people who've already paid off their student loans, or to those who didn't go to college.

A Temporary Fix

While the debate continues, President Biden has provided a temporary fix for many men and women dealing with student loan debt by extending a pause on federal student loan payments. The pandemic induced pause will last until August 31, putting a temporary halt on the financial worry for many.

As the discussion on widespread student loan forgiveness continues to heat up, students should keep an eye out for changing policies and potential relief measures. After all, the education path is a big decision, and money is a significant part of the conversation.