If you’re one of 27.7 million Americans who currently owe on federal student loans, you may like the idea of student loan forgiveness. But many others don’t, so you need to offer persuasive reasons for doing it.
This is a hot issue right now. House Democrats want to forgive $30,000 per borrower, and Senate Democrats tried to include a $10,000 per borrower student loan forgiveness program in the CARES Act. But Republicans vigorously opposed these ideas so they’ve not been implemented.
That means this’ll still be an issue in this fall’s political campaigns. Joe Biden calls for forgiving all undergraduate federal student loan debt related to public 2 and 4-year school tuition for borrowers earning less than $125,000 a year. Donald Trump sayshe wants to forgive whatever undergraduate and graduate college debt that remains after 15 and 30 years of payments, respectively. But the Trump plan is fake, because virtually 100% of student loan debts are fully repaid within those timespans.
If student loan forgiveness would help you, now or in the next few years, let your congressional representatives know it. Here are some arguments to make:
- It’ll provide much needed economic stimulus: Federal Reserve economists predict 47 million lost jobs due to coronavirus, causing a 32% unemployment rate by June 30 — worse than that of the Great Depression. Lots of consumer spending is going to be needed to put these people back to work, and forgiving tens of thousands in student loan debt for more almost 28 million Americans will free up plenty of money for such spending.
- It’s the fair thing to do: A recent Student Loan Hero survey found that 46% of Americans feel mass forgiveness would be unfair to students who’ve repaid their college debts. Not surprisingly, 51% of millennials (ages 24 – 39) support student loan forgiveness but only 31% of baby boomers (ages 56 – 74) do. Of course, millennials owe much more than previous generations, largely because their college costs were the highest ever as state taxpayers’ support for higher education fell 50% from 1981 to 2019. Small wonder one baby boomer confesses that his total college expenses in the 1970s were about 10% of what millennials paid in the 21st century.
- It doesn’t reward the most affluent: Professionals like doctors and lawyers average the highest incomes (and $145,000 to $246,000 in student loan debt). As noted, however, the Biden plan would deny them forgiveness once their incomes reach $125,000, and even the most generous of the congressional Democrats’ plans would eliminate only $30,000 of their six-figure debts.
- Taxpayers won’t pay off loans you borrowed voluntarily: First, Federal Direct Loans account for 82% of outstanding federal college loan debt and Washington, which made those loans, doesn’t actually pay itself anything to forgive them, it just stops collecting them. Second, as indicated by the college cost data reported above, it’s not like you borrowed voluntarily.
One way to make college more affordable is to influence government policies governing your student debt. So exercise your constitutional right to “lobby” your U.S. Representative and Senators now, and be sure to vote for candidates who support student loan forgiveness in November!
Struggling to pay your student loan debt? Let College Affordability Solutions use its 42 years of experience in working with such debt help you out. Contact us at (512) 366-5354 or email@example.com three for free consultations.