What President Biden and Lawmakers Can Do to Solve the Student Debt Crisis

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Student debt in the United States has swelled to more than $ 1.7 trillion since Congress authorized students to borrow from the government in 1958. This debt has varying effects on students, workers, and the economy as well. general.

“We see the student debt crisis when it comes to individual student loan borrowers. We see how student loan borrowers struggle to save for retirement, have emergency savings, buy homes, start small businesses ” Protection center for student borrowers former executive director Seth Frotman told CNBC.

In recent years, however, activists on both sides of the aisle have called on the president to do something about student debt. Many even pushed for outright cancellation.

“It is quite clear that under a law called the Higher Education Act, the President of the United States has the legal authority to cancel student debt held by the federal government,” said Representative Mondaire Jones, D-NY

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Some argue that debt cancellation is not the solution and would mainly benefit the wealthier borrowers who have no problem repaying their loans on time.

“If I told you, would you borrow a hundred thousand dollars to go to Harvard Law School, you wouldn’t blink and say yes, that’s clearly a good deal,” said Phil Levine, professor of economics. at Wellesley College. “We should not absolve these people from their debt. They have made a huge investment that is really going to pay off a lot.”

President Joe Biden has remained largely silent on a plan to write off student debt globally since taking office, even though he campaigned to write off up to $ 10,000 in student debt for all borrowers. However, his administration has paid off some of the student debt for certain groups such as disabled borrowers and active duty members.

Watch the video above to learn more about the origins of the student debt crisis, the various options the president explored to reverse it, and the many proposals on how to fix the system going forward.

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Disclosure: NBCUniversal and Comcast Ventures are investors in Tassels.


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