Federal student loan borrowers can expect “the most affordable student loan plan ever”, Biden said in a video address on Tuesday announcing significant changes to the debt from higher education held by over an eighth of the country.
Federal student loan borrowers can expect “the most affordable student loan plan ever”, Biden said in a video address on Tuesday announcing significant changes to the debt from higher education held by over an eighth of the country.
“Most affordable ever” does not mean “most affordable possible.” He tried that. SCOTUS stopped him. He’s doing what he can to make the situation better.
Honestly I think this is better on the whole. Not if you were going to get your loans forgiven - I get that - but for today and tomorrow’s borrowers, this policy will be a positive thing and will still help current debt holders, too.
It can actually end up having the effect of causing tuition to go up.
When student loans became loans that couldn’t get forgiven, and federal student loans became widely accessible for poor students, tuition prices got jacked up because the universities knew that they could get away with it. I imagine a similar thing will happen here.
The only true solution is to have free public higher education like the rest of developed nations do.
The true solution was to not mess with the system we had. Where the state schools were nearly free and debt was easy to discharge. The problem was they made it impossible to discharge.
This program will actually save my family more money than the program shut down by SCOTUS. Our loans were never (and are never) going to be completely forgiven, and that’s fine. We owe collectively ~$90k. This plan is a manageable path to payoff for us, at least.
Fed loans should be scrapped, the reason college is so expensive is colleges see that the gov will give loans to anyone and back them up. The second that this became the norm, these colleges just saw a blank check.
Not sure how effective that would be. It would have to be paired with regulation on the cost of college tuition for it to actually do anything.
And even then, a “more affordable” college education still is unobtainable to many students. Most people have zero savings or even a negative net worth.
https://www.credit.com/blog/average-savings-by-age/