The Pros And Cons Of Student Debt

Emily Fischer Writing 122 Mr. CD 08 March, 2024 Student Debt Relief Student debt relief is a SAVE plan policy which provides relief for those who have taken out $12,000 or less in student loans. The Supreme Court recently struck down this bill, stating that, “the Biden administration does not have the authority to wipe out nearly half-a-trillion dollars in student debt.” (CBS News). Student loan forgiveness should be instated as it would benefit millions of people financially, which would help the current economic situation and allow people to purchase houses for the first time in their lives. As prices rise, people are struggling to afford college tuition and the cost of living continues to rise, all while wages have stayed the same. This

$50,000 per borrower with no cap would cost taxpayers around $1 trillion. And forgiving the whole amount would cost taxpayers more than $1.6 trillion” (CATO Institute). Fourth, it links student debt cancellation to potential inflation in higher education prices, citing research suggesting that increased aid leads to higher costs. Lastly, the article raises constitutional concerns, arguing that only Congress possesses the power of the purse, and unilateral cancellation by the president would be a violation. However, student debt relief is crucial because of its contribution to the mental health crisis, housing crisis, and it would help the economy recover. Despite facing legal challenges and Supreme Court setbacks, the Biden administration continues to explore alternative measures, including income-driven repayment plans. The evolving nature of Biden's initiatives and the complexities surrounding debt relief are underscored, emphasizing the pursuit of solutions to address student debt while recognizing the varying economic and social