#CancelStudentDebt trends on Twitter, debate reignites over the cost of a college education
Do you think the federal government should help students pay off their college loan debt?
President-elect Joe Biden said he wants to erase student debt “immediately,” and has repeatedly announced his support for the HEROES act, making the federal government pay for up to $10,000 of a students private, non-federal student loans for “economically distressed” borrowers.
Experts at a Harvard law clinic argue it’s up to the president and the education secretary to cancel student loans.
A study at the Levy Economics Institute from 2018 found that student debt cancelations would boost the economy and could encourage young people to start businesses, buy homes and start families.
Elizabeth Warren, former Democratic presidential candidate, made the argument for canceling student debt with the idea that it would reduce the racial wealth gap and allow more people to continue their education.
People with college degrees typically earn more money than those who don’t have them, according to critics, and they say student debt cancelation could be regressive since the aid would be targeting people who are already at an advantage.
Other critics, including conservative commentator Ben Shapiro, have spoken out against the idea, saying canceling student debt could lead to the cancellation of other types of debt, like mortgage debt and credit card debt, which would have negative economic consequences.
Frank Luntz, a Republican pollster and pundit, posted an unscientific poll on Twitter this week asking: “Do you support or oppose eliminating $50,000 from all outstanding student loan debts?” With 117,686 responses, 83% indicated they oppose the move, and only 17% supported it.
A recent study by the Financial Times found that the COVID-19 pandemic is deeply affecting the economic ability of students and young workers, and has amplified trends like low wages, stagnant job markets and rising student debt.
The rising $1.6 trillion in student loan debt held by 44 millions Americans, coupled with the economic effects of COVID-19, have pushed other Democratic leaders to call for some sort of debt cancelation.
“[Borrowers are] having to make choices between paying their student loan and paying their rent,” Biden said.
Peter Fenteany, a UConn senior mathematics major, said he initially made choices in his college career to avoid taking out loans, but after reflecting believes there should be some sort of loan relief program.
“Going to college is a necessity for economic mobility, and for many people, even making the ‘right’ choice financially involves taking out loans,” Fenteany said. “These people especially should not be punished for seeking education and a better life.”
The “student loan cliff,” created by President Donald Trump’s pause on student loan payments through the end of 2020, might push borrowers into more economic distress amid the pandemic.
A Pew Research survey from earlier this fall found 58% of borrowers who had their payments paused would have a hard time continuing those payments starting in January 2021. Many are looking to the Trump administration to extend this program while still in office.
“There’s no indication that we are through the pandemic, and it’s a bit of a mystery why the administration that has extended the benefits already won’t extend them once again,” Debbie Cochrane, executive vice president for The Institute for College Access & Success, told Politico.