Yesterday President Biden decided to knock $10,000 off student loans and $20,000 off Pell grants. As long as you’re not making more than $125,000 a year. Which, apparently for most of the people this affects, from what I’m hearing, is the case. Considering a large percentage of college attendees drop out before obtaining an actual degree and still have to repay their loans, I can see how this could be helpful.
I know some people were ecstatic over the news. Others, such as a colleague of mine, indifferent. As they said, “Whoopie. I owe $70,000 so now I’ll only owe $60,000”. Well, beggars can’t be choosers.
But in all the hoopla over this decision, there is one demographic that everyone is forgetting: the ones who are yet to go to college. What happens to the student loans of Poor Joe who is setting off to University XYZ this fall? Or to Suzy Q who is planning to attend Community College Variable after she graduates in 2024? The students of 2025, 2026, 2027, etc. What happens to their student loans?
See, the student loan “forgiveness” is only great for the ones who have a student loan now. It doesn’t help the payors of future college students who may need that “forgiveness” as well. Biden has missed the big picture completely. Doing this as a “one time thing” for some is not going to fix the actual problem: making secondary education affordable for everyone.
And to all the borrowers who have been able to defer their payments through the pandemic, be prepared. Because they kick back in at the end of the year. Maybe if you’re lucky it will be $10,000 or $20,000 less.