Countless people throughout the United States are facing student loan debts. Before going into college, many young people are encouraged to take on student loans for the purposes of higher education.
They’re also told taking on these loans constitutes an “investment” and that taking these loans on is better than forgoing higher education altogether. However, with student loan debt comes the need to make payments and subsequent interest on top of the original debt.
Many borrowers later feel trapped and financially overwhelmed. As of right now, there is a temporary halt on requirements for borrowers to make loan payments. However, that all ends once January 2022 arrives.
Fox Business reports when that time comes, a lot of Americans are going to be facing some real challenges.
The Reality of Student Loans in the United States
According to a Teachers Insurance and Annuity Association (TIAA) survey, 57% of individuals who work in the public sector and carry student loan debt are facing dues to the tune of $50,000 or higher. Meanwhile, another 24% carries more than $100,000 in owed student loans.
At this time, it is being said that 95% of Americans who owe student loans will struggle to make payments accordingly during the start of the new year. Right now, the White House has a “final extension” in place. This extension grants borrowers until the end of January before they must begin making loan payments again.
Imagine agreeing to decades of debt via student loans only to then live like this: pic.twitter.com/HTLEVVypW9
— Sophia ‘Sophiopath’ Narwitz (@SophNar0747) November 14, 2021
However, even with the extra 30 days, many borrowers are still facing financial problems. Defaulting on student loans owed can furthermore lead to a plethora of additional problems.
Therefore, individuals who struggle with student loans are advised to look into lowering interest rates, filling out formal requests for additional forbearance, and going to the Federal Student Aid’s online website to get started on a repayment plan based upon individual income status.
Can President Biden Do Away with Student Loan Debt?
As January 2022 gets closer, more progressive Democrats are pushing for Biden to end student loan debt altogether. What “ending” student loan debt means is merely passing on the dues to American taxpayers who didn’t willingly sign up for these loans.
Democrat Sens. Chuck Schumer and Elizabeth Warren are just some of the loudest voices calling for Biden to strike down student loans altogether. House Democrat Alexandria Ocasio-Cortez has even declared the 46th president can make this happen via executive order.
Student loan payments resume in 76 days. Today would be a great day for President Biden and Vice President Harris to #CancelStudentDebt.
— Chuck Schumer (@SenSchumer) November 17, 2021
However, the reality is Biden does not have the power to unilaterally save people from having to pay back their student loans. Something of that magnitude would have to be voted on in Congress.
Biden, as president, can issue forbearance timeframes and postpone the date to which individuals must re-commence paying off their loans; however, he does not have the power to erase owed loans by himself.
Are you facing student loan debts? Let us know your situation below in the comments field.