Do you also owe student loan debts? This is a question that a lot of Americans no matter their age will say yes to. Do you think President Joe Biden can still pardon some of your student loans? 6 Experts say it’s unlikely. Hence the need to have a repayment plan for 2022.
Student Loan in the USA.
A student loan is a form of financial assistance given to students to help them go to school. It’s a must to pay it, and the interest keeps piling up until the recipient is done paying.
According to reports from the Federal Reserve Bank of New York, the average student loan debt in 2020 has reached an all-time high of $38,792 and collectively has reached $1.6 Trillion. Over 32% of American Students will go into debt to get through college.
Betsy DeVos, a former Secretary of Education said that “the Federal Student Aid’s portfolio is nearly 10 percent of our nation’s debt.” There are students loans in almost every age bracket. According to reports from the U.S. Department of Education. Borrowers ages 25 and 34 had over $500 billion, Adults ages 35 to 49 had debts totaling $613 billion, even older ones (retirees) ages 50 to 61 owe about $273.7 billion in student loan debt.
But President Joe Biden Promised Us!
Repeatedly, President Joe Boden has said he is in support of the idea of canceling $10,000 per borrower, some democrats even supported canceling up to $50,000 per borrower which the republicans have vehemently opposed.
Net Advisor talked with 6 experts recently who gave their opinions on whether Joe Biden can ever cancel some portion of the student loan. These experts are Dr. Tisa Canady (founder and managing director of educational research and consulting firm), Robert Farrington (Founder and CEO of The College Investor), Leslie Tayne (Founder and Managing Director of the Tayne Law Group), Adam Minsky (Principal and Owner of Law Office of Adam Minsky), Andrew Pentis ( Certified Student Loan Counselor at Student Loan Hero), and Andrew Crowell (Vice Chairman of Wealth Management at D.A. Davidson & Co). What were their points of view?
Dr. Tisa Canady
She said Congress is so divided over the matter of forgiving students loans, she doesn’t see Congress coming together on time on this. She added that the lingering effect of their indecision weighs more on black women, who traditionally face a larger wage gap and tend to borrow more for undergrad and pursue advanced degrees.
He said instead of blanket student loan forgiveness, what may more likely happen is a reform of existing federal loan programs like income-driven repayment plans, and the public service loan forgiveness program.
To go to Law School, Leslie Tayne took a lot of debts plus has five kids in college. Says “wheels are in motion to change how student loans and Educational expenses are structured.”
Minsky believes that there will be a combination of solutions to address mounting student debt, with a particular focus on revamping and fixing several existing federal loan programs.
Andrew Pentis thinks that since Biden has extended the cancellation of student loans to students with disabilities, veterans, and those who are wronged by their schools, there might be no extension to everyone.
In a survey carried out on student loans borrowed by D.A. Davidson & Co, they found out that more than half of all respondents favored the government providing wide-scale student loan forgiveness. Still, only 43% believe it will happen during the Biden administration.