In 2008, the world’s economy witnessed an abrupt decline that devasted the financial markets. The Great Recession’s economic crisis caused millions of Americans to lose their homes, jobs, and life savings.
The economic crises opted Americans to go back to schools to learn some new skills. Between 2008 -2018, the economy stabilized gradually in the country. Unfortunately, secondary education funding did not return to pre -2008 levels as the Federal and state governments cut most of the financing to restabilize the economy.
Since that time, education costs started to rise in America, and these soaring costs of college put the students in a difficult situation. College is more expensive than ever before. The average tuition fee for a four-year degree has increased by 24% in all 50 states.
On average, an American student spends $25,396 for one academic year, while the cost is twice for private colleges. As of December 11, 2020, an American student earns $45,242 annually, making it impossible for him/her to afford private colleges.
In this situation, students are left with no choice except to borrow loans to pay their fees. Resultantly, more students and families depend on loans to continue higher education, which is increasing student loan debt.
And what’s about Coronavirus, which rendered most of the students jobless in 2020?
Thanks to the economic crisis unleashed by COVID-19, student loan debt has reached the highest level of $1.465 trillion in 2020, almost double of $675 reported in 2009. On average, college graduates relying on student loans are leaving schools with $29000 in debt.
The matter of increasing student loan debt also remained under discussion during the 2020 presidential campaigns. Enacted on March 27, a law named CARES allowed the US secretary of Education Betsy DeVos to cut interest rates on federally held student loans for two months as a part of the Coronavirus relief package.
After that act, a coalition of over 60 advocacy groups has been emphasizing the congress to annul student debt in the next coronavirus stimulus package.
Advocates of student loan debt cancellation were disappointed as congress fixed only $2.2 trillion in aid. The President of the umbrella association also expressed frustration with the amount, saying it inadequate to fill the gap.
Recently an organization named the “Debt Collective” initiated a movement to convince people to stop paying student loan debts. Even during the movement, dozens of people ignited their student loan bills and demanded the cancellation of loans for free education.
Apart from these organizations and activist groups, Sen. Bernie Sanders and Sen. Elizabeth Warren also pledged to terminate the student loan debt in America.
However, the announcement of Joe Biden as President-elect created hope in students and activists. They think that Biden’s administration might take the initiatives required to address student loan debt in the country.
What people are saying on Twitter
To be clear: @JoeBiden has the legal authority to cancel 100% of student loan debt held by the federal government through powers called "Compromise and Settlement." Congress vested this authority in the Department of Education through the Higher Education Act of 1965.— The Debt Collective (@StrikeDebt) December 24, 2020
Bad news: A continuing freeze on student loans is NOT included in the relief package.— Remington A. Gregg (@ragregg) December 21, 2020
When in office, Biden must continue the freeze, or we’ll face a calamity in February when 44 million are forced to spend money they don’t have.
Better yet, cancel student debt.
#CancelStudentDebt Cancel ALL student debt. Fund paying off non-federal loans. The enormous spending boost that this would create would support job growth for decades. I worked my a** off & paid mine off, so my voice counts: cancel fees fines penalties, wipe the slate clean.— Diamond (@Diamond61845143) December 24, 2020
Here’s what Biden can/should do via executive orders to help U.S. families:— Alyssa Milano (@Alyssa_Milano) December 21, 2020
1. temporarily renew extra unemployment benefits.
2. Raise the minimum wage, beginning with federal contractors.
3. Suspend student loan payments, without interest.
4. Halt evictions on unpaid rent.
Almost half of Americans are demanding the nullification of student loan debt. We want your feedback, though.
Let us know in the comment section.