Student loan cancellation under the Biden administration
President Biden offered to forgive $ 10,000 for each borrower.
MINNEAPOLIS – Nearly $ 1.7 trillion is the current total of US student debt.
Yeah, it’s a trillion, with you know, 12 zeros behind the 1.
Of that unappetizing debt cake, $ 25.5 billion is Minnesota’s share, according to EducationData.org.
Jonathan McNicholes, president of state for Students United, knows that figure.
“We are a student-run organization, our board of directors is made up of the seven presidents of academic bodies from each of the universities in the state of Minnesota,” McNicholes explained. “All of our officers are students from across the system. We advocate at the state (and) federal system level on student issues.”
McNicholes is also a graduate student at Metropolitan State University.
He said President Joe Biden’s idea to write off $ 10,000 in federal student loan debt to every borrower is a solid first step.
“But many also agree that it’s going to be helpful, but not completely help solve the need that they really see,” McNicholes said. “And you’re going to see a lot of students pushing for that 50,000 as well.”
McNicholes cited productivity after graduation as one of the many reasons why student loans should be canceled.
“You’re going to get a full-time job, start paying it off, start looking for homes, get involved in the housing market, have kids,” McNichles said. “But nowadays for students that is not a reality. Most of them are not going to find a house, most of them cannot even afford to start thinking about taking out a mortgage. with this amount of student debt and it’s delaying this part of our economy. “
McNicholes also added that at this time higher education was slowly becoming compulsory, leaving many people to go into debt with no choice.
“They have a very limited chance of successfully getting the jobs they want to get without a graduate degree,” McNicholes said. “So they’re going to do it, that’s the only way for a lot of students to go.”
However, some oppose the cancellation of the debt, citing the setting of a bad precedent.
Congressman Jim Hagedorn shared in a statement:
“The idea that the federal government should write off student debt is irresponsible and sets a bad precedent. What does this say to all the persevering middle-class Minnesotans who worked so diligently and sacrificed so much to pay off their loans, or those who chose a different educational or professional path to avoid student debt? ? Federal policies should encourage self-reliance and personal responsibility, and also treat citizens equally.
McNicholes said he didn’t think this argument was about the future.
“Would we not house the homeless for people who have escaped homelessness? He asked. “We support people in need. It’s fantastic that people have paid, but that doesn’t mean there aren’t people struggling. Just because you were able to escape, or that ‘others have been able to escape the deprivation of their rights that they have experienced, which is not a good reason not to help those who are still struggling. “
President Biden faces mounting pressure to increase the amount of debt forgiveness by a number of Democratic senators. So far, other than issuing an executive order extending the pause in student loan payments during the pandemic until the end of September, Biden has not indicated any legislative action.