By: Ariana Ceballos
For years, educators and family members have told children that higher education leads to a successful life. This statement ignores the fact that it takes money to get a higher education. Many students take out federal and private loans to pay for their college education, and it’s these same financial decisions that prevent them from pursuing the higher education necessary for their chosen career.
Student loans make life worse for many students by placing a burden on them that they may have to live with for most of their adult life. For this reason, President Biden should stop extending the pause on student loan repayments. He should forgive them and end the decades-long pressure among students and adults.
Since March 2020, people who have received federal student loans have not had to repay loan providers under the CARES Act adopted by the Trump administration. President Biden extended the hiatus in January 2021 after Omicron emerged in the United States, and it was set to end on May 1. Currently, the pause is maintained until August 31, 2022. These enacted pauses were part of COVID emergency relief – as COVID is one of many things preventing cardholders from making payments. While these pauses have been large and significant in this time of need, officials should be aware that many incumbents are dependent on their loans being forgiven.
However, with the recent focus on student loans, it is important to note that federal student loan providers were failing student borrowers long before the pandemic. NPR reports the failures of an affordable student loan program intended to help low-income borrowers. This program, called the Income Contingent Repayment (IDR) plan, is structured to help borrowers who are unable to make large payments each month.
NPR’s survey notes that borrowers with the lowest incomes are most affected by IDR defaults. Based on internal servicer documents, it was stated that “in a 2016 review, officials warned that $0 IDR payments eligible for rebate are not being tracked adequately”, and that people making these payments “would earn less than 150% of federal revenue”. poverty line.”
Representative Persis Yu of the Student Borrower Protection Center says “people with $0 payments are financially troubled people with their payments not tracked” and were “in debt they don’t owe”. Federal student loan providers simply don’t help borrowers or try to make it easy for them. This means that an executive order is needed to resolve this issue.
In an article for Forbes, a representative of the Debt Collective described as “a syndicate of debtors standing up for student borrowers,” Braxton Brewington echoes that Biden should end student debt as a solution to the problem. He said, “Biden repeatedly touted plans to eliminate student debt during the campaign trail… at a time when costs to families are at an all-time high,” the pandemic has increased pressure on ordinary payments. I think it’s a good idea because student loans are a constant threat to maintaining stable finances, and many borrowers are adults who want to maintain their households.
We are living in times of great uncertainty with the pandemic and ever-present inflation fears. What has remained constant is the lengthening of payments, keeping borrowers on their toes. After two years of deciding whether to consider a financial plan that includes how to pay off their student loans, if the extensions continue, it means student debt can be forgiven without affecting much of the country’s economy. .
For a long time, student borrowers have suffered from the repayment of their loans, as evidenced by defaults at the federal level. If no changes are made to improve federal student loan providers, student loans should be forgiven. Borrowers should not suffer from those who are forced to help them in such an important process. After all, education is a need and the opportunity to pursue higher education should be available to everyone.