Student Loan Debt: The Biden-Harris Administration Weighs In
Student loan debt has been a growing issue in the United States in recent years, and the problem seems to be getting worse at an alarming rate. According to Federal Reserve data, outstanding student loan debt has nearly doubled over the last decade, reaching $1.3 trillion as of Q3 2018.
This has become an issue of concern even for politicians; with more than three-quarters of American college graduates carrying student loan debt, many young voters could be turned off from voting if the parties aren’t able to address the issue somehow.
Updates From John Harris
The Obama administration, in which John Harris served as an advisor, took steps to address the student loan debt crisis. Now that he is advising the Biden-Harris administration, he has been working to implement these same policies but with a new, more aggressive approach.
A lot of people are living paycheck to paycheck, Harris says. We need to do more than just make sure they’re not defaulting on their loans.
He also believes in using innovative solutions such as income-sharing agreements and wage insurance.
Expected Benefits of Reducing Debt
By reducing the interest rate on student loans, students will be abler to afford higher education without having to worry about their future debt. This change in policy could allow a student to graduate with $10,000 less debt than before.
*The average cost of a four-year college degree is estimated at $80,000 for one year’s tuition and living expenses.
*This means that the average student would have an extra $10,000 in income each year and an extra $200 per month.
*This will make it easier for graduates to pay off their debt faster and reach financial stability sooner
Possible Effects of Reducing Debt
A reduction in student loan debt may have positive effects on the economy. For example, more people will be able to start businesses and spend money on goods and services. There are also some negative effects to reducing student loan debt.
One of these effects is that it would take money away from other federal programs and may lead to higher taxes in the future. Another effect is that there may be less competition among graduates with loans who can afford a degree at a higher price because they have loans to pay back.
Quotes from a Former Senator and Secretary of Education
We should be forgiving these loans, as we have in the past for other forms of debt, as a way to make sure that students who have been burdened by debt can get a fresh start, said Sen. Kamala Harris (D-Calif.), a 2020 presidential candidate and former California attorney general. This is not just an issue of college affordability; it’s an issue of economic opportunity.
It has become increasingly clear that they are struggling to pay off their student loan debt. They are having trouble buying houses, starting businesses, or even getting married and starting families because so much of their monthly income goes toward paying off their student loan debt.
While others worry about the federal deficit or ballooning budget deficits caused by President Trump’s tax cuts for corporations and wealthy individuals, it is high time we worry about our future workforce too! There are projections that over two trillion dollars will be owed on federal student loans over the next ten years which is more than double what was owed in 2008 when President Obama came into office.
These numbers are staggering but also show why this administration has taken such seriously as well as making addressing this crisis a top priority during its first term in office.
Key takeaways from the blog post
1) College tuition has been rising for years.
2) Students are forced to take out student loans to cover the cost of tuition and living expenses.
3) Student loan debt is projected to become a trillion-dollar industry.
4) For some students, their student loan debt exceeds what they owe on their mortgage.
5) The average monthly payment for student loans is $400, which can be difficult to make while also paying other bills.
6) The Biden-Harris administration believes that education should be free, but not everyone agrees with this idea.
Key takeaways from John Harris’ posts over time
John Harris, the Vice President of Policy and Executive Secretary at the Office of Management and Budget (OMB) in the Obama administration, has written a series of blog posts on a student loan debt that has been released over time.
In his first post, published on April 4th, he offers hope to those who are struggling with student loan debt by detailing two potential plans for the future: one that would provide relief to borrowers with high balances and another proposal that would help low-income students afford college tuition.
Both plans include a key component that is meant to reduce monthly payments for borrowers who are working hard to pay their loans back. This part of both proposals would allow borrowers to cap payments between 10% and 15% of their disposable income.
For more info Visit Us