It is no secret that the biggest set back in any college-graduate millennial is that heavy student loan debt that will possibly be looming over their heads for years to come.
At the beginning of the pandemic, loans were deferred through the end of the year. As we approach the new year, however, borrowers are hoping that the new administration, led by president-elect Joe Biden, can find a way to forgive student loan debt. And perhaps that possibility might not be too far from reach.
President-elect Joe Biden has stated that he’ll forgive $10,000 for all borrowers and relief for all debt for those who attended public colleges or historically Black colleges or universities and make less than $125,000 per year, according to an article by CNBC.
The pressure is on for Biden to go through with his word, and for good reason. Class of 2019 graduates owe an average of $29,000 each in addition to the 44 million Americans that are currently saddled with $1.6 trillion in shared debt, according to The Atlantic.
Not only that, but student loan debt disproportionately affects Black and Hispanic borrowers as well as women who account for two-thirds of student loan debt, which furthers the wealth gap disparity in the long term for minorities.
Despite these outstanding numbers, eliminating student loan debt is a lot harder than it seems in a political stand point.
Many aren’t too hopeful that Congress will aid Biden to diminish student debt. Experts told CNBC that Biden will probably be met with opposition from Congress and might be better off pursuing student loan debt cancellation through an executive order, but even that route could strain the relationship between Biden and Congress for any future endeavors.
Nevertheless, student loan debt is currently higher than credit card debt and the pandemic has exacerbated the chance that these borrowers have of ridding themselves of the debt. Something must be done to alleviate this constant burden.Siguenos: