COVID-19 has caused economic and emotional turmoil for all Americans, especially college students. Not only are students forced to learn online and possibly stay completely at home, many students struggle with paying the tuition fees and taking out student loans.
Almost 6 out of 10 borrowers reported that it would be difficult to pay their loan payments in the next month. The cost of attending a four-year college Increased more than twice as fast as inflation. And while Ohio University students have the Ohio Guarantee In terms of tuition fees and fees, incoming students have to deal with rising prices due to the pandemic.
President Biden announced at a CNN city hall that he would not issue a $ 50,000 student debt cancellation plan. However, he understands the impact that student debt can have and will work out an alternative plan. Biden announced that he will instead write off $ 10,000 in debt because he doesn’t believe he has the authority to do more.
Since the first day of his presidency, Biden has done so outlined forgiveness of loans as part of its emergency action plan to save the economy. The plan states that a minimum of $ 10,000 per person would be forgiven in federal student loans, after being suggested by Senate Leader Chuck Schumer (D-NY) and Senator Elizabeth Warren (D-MA).
Senator Warren disagrees with the president’s position, saying that he has the ability to issue a greater number of student loan forgiveness.
“This is the most effective economic stimulus available through executive action,” said Warren. “Research has shown that canceling student debt would boost gross domestic product, create jobs, boost small business creation, support the housing market and help close the racial wealth gap.”
Some might argue that student loan forgiveness is one thing “Free handout”, but it is a step that must be taken to mend our broken economy and the racial wealth gap. It would also take the pressure off graduating students, who worry about getting a job after graduation.
In addition to his original plan, Biden has too promised to cancel the rest of the debt for those attending public colleges and historically black colleges and universities. 86.6% of black students borrow federal loans to four-year colleges, compared with 59.9% of white students, according to Business Insider. And on average, a black graduate has $ 7,400 more in student debt than his white colleague.
The debt cancellation of student loans would allow black graduates to focus on their studies instead of worrying about loans and help close the racial wealth gap. It would bring graduates of all races closer to a level playing field at graduation.
Student debt affects not just black graduates, but students of all races and ethnicities. CNBC reports that borrowers aged 24 and under have an average balance of about $ 14,807.69. And that number is only increasing as borrowers get older.
These numbers are no different from current student reports. The average debt for a student at Ohio University after graduation is $ 20,909. The cost of tuition and living on campus for students enrolled in 2021 has increased annually to $ 28,602, up from $ 26,254 for students enrolled in 2016. Whether due to a lack of financial aid and scholarships or a lower family income, it is still a burden for students.
The student loan forgiveness plan would be to help many Ohio University students. Since OU is a public university, student loan debt would be forgiven for current and former students.
Biden has taken a big step by canceling a $ 10,000 loan, but we can’t stop doing that. We need to keep going until we hit the $ 50,000 debt cancellation target. Biden has offered alternative solutions for people seeking higher education including offering two years of community college or other high quality training programs without debt, but we need to do more.
It can be difficult for some people to understand why loan forgiveness is so important, especially if they had no problems paying for college themselves or didn’t attend college at all. However, so many students have to work long hours, take out loans, and even transfer from community colleges to find a way to pay for their education. We must fight for our right to higher education. And if you’ve never had to fight before, then lucky you don’t have to.
Hannah Campbell is a freshman journalism student at Ohio University. Please note that the views and opinions of the columnists are not those of The mail. Do you agree? Tell Hannah by tweeting her on @hannahcmpbell
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