Just hours after the U.S. Supreme Court nullified President Joe Biden’s student loan relief program, the president is back on the mic with a new loan forgiveness plan.
The president’s original plan was a clunky mess that distorted the market, did nothing to lower future higher education costs, and was prohibitively expensive.president’s new proposalthe 12-month repayment and late payment waiver program lacks details and won’t be revealed until federal education officials start crafting regulations.
As college costs rise, students take on more debt, accumulating debt that will take decades to repay, if at all. As a result, students are left wondering whether they should borrow money to get a degree, or should they give up on going to college. Even after earning a degree, heavy student loan burdens make it difficult for graduates to buy a home, make other investments, or even save for retirement. In the worst case, students borrow money for their college education, drop out without a degree, and still end up with a lot of debt.
This has to change.About 44 million Americans are in debt Over $1.7 trillion Student loans average $37,338 per borrower, and national policies go beyond debt forgiveness plans to create student loans that aren’t always viable career paths. , degree selection, etc. need to be addressed more directly.
An interesting starting point for change is Act on Rationalization of Responsibilities and Values in Education for Students. The bill, authored by Senators John Cornyn of Texas and Senator Bill Cassidy of Louisiana, Education Cost Reduction and Debt Lawis a broad package of five bills introduced by Senate Republicans to directly address rising costs of higher education and student debt.
Mr. Cornyn’s proposal would make it more difficult for students to pile up large amounts of debt while innocently pursuing an unmarketable college degree. The bill would make loans available to students pursuing undergraduate degrees that have not shown higher earning potential than high school graduates and graduate students with degrees that have not shown higher earning potential than bachelor’s degrees. will be restricted.
Students shouldn’t base their academic choices solely on the marketability of a degree, but neither can they ignore that reality and increase debt for a degree in a field that won’t lead to a high-paying job. Cornyn’s proposal could set in motion a much-needed rethink of the federal government’s role in the student-loan market. For example, whether private lenders should play a bigger role, and whether the federal government can do more to bring down tuition and burdensome loan fees. debt.
Over the course of a lifetime, college graduates are likely to earn more than those without a higher education degree. The federal government and schools have a duty to provide future generations with opportunities to succeed.
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