I have to admit, I’ve never been a fan of canceling student loan debt.
I’ve heard the arguments in favor of it, and they’re valid points. But I’ve heard the arguments against it also, and there’s some validity there, too.
President Joe Biden issued an executive order this week that will cancel hundreds of billions of dollars in federal student loans to help ease the cumulative $1.6 trillion student loan burden in this country.
The Washington Post reported that Biden’s executive order will do the following:
*Cancel up to $10,000 in federal student loan debt for borrowers who earn less than $125,000 per year, or under $250,000 for married couples who file jointly.
*Cancel up to $20,000 a year — using the same income criteria — for those who received Pell grants, which are federal aid for lower-income students from families typically earning less than $60,000 a year. Seven in 10 college graduates with federal loans also received a Pell Grant.
*Extend a pandemic-era pause on federal student loan payments through Dec. 31. It was set to expire Aug. 31.
*Propose creating a new income-based repayment plan to lower monthly bills for undergraduate borrowers. (Remember this one. We’ll come back to it.)
Musings of a Nobody 