Article by Elena Yacoben, TPT Staff Writer

In the United States, student loan debt has amounted to just over 1.748 trillion dollars, making it unmotivating to even attend college. However, the statistics show that those who attend and later graduate from college with their Bachelor’s degree earn an average of 22 thousand dollars more annually than those who only graduate from high school. Studies upon studies show the immense benefits of graduating from college. With the expanding number of people accumulating debt, attending college is proving to be increasingly difficult; the question now becomes what Democrats can do moving forward.

In August 2022, Biden announced his plan to forgive over 40 million Americans from at least 10 thousand dollars of their student loan debts. Additionally, the Biden Administration approximated the forgiveness of their remaining student balances of over 20 million Americans. This program targets individuals, who are out of the top 5 percent of earners in the country, make less than 125 thousand dollars per year, or are under federal Pell Grants. The Biden Administration also indicated that the purpose of this plan is to soften the impacts of the pandemic on working families, along with pausing the student loan payments until January 2023. Essentially, the aspiration is that by providing some relief for students, the United States can make higher education more accessible for every person, and further create a more equitable and affordable education system for the next generations of students.

Although the consensus of indebted college graduates are in support of the plan, economists are concerned about the ramifications of its implementation. Some theorize that the rates of inflation will increase drastically, though it depends on which economist is being asked. The Committee for a Responsible Federal Budget (CRFB) projects that the debt cancellation will “boost near-term inflation.” Others have opposing views: Economists at the Democratic-leaning Roosevelt Institute state that the inflation from debt forgiveness is “small” and will be “more than offset by the [student loan] payments restarting” in January of 2023. With some politicians, such as Republican Mitch McConnell calling the forgiveness “unfair” and “a slap in the face”, it's obvious that there is partisan divide among the verdicts;, with the Democratic party with the majority of support, and the Republican party in mass opposition. The obvious partisan divide continues with a potential lawsuit from the Republican party against the Biden Administration, though it appears to be significantly harder than assumed for a number of reasons. Critics are scrambling to find evidence against the Biden Administration, but they first must find standing: In other words, plaintiffs must prove that they have been negatively affected by this plan, but without any substantial evidence, the Republican party is going in circles.

So, is it possible to deliver a final verdict? Simply put: not really. No one can say for certain the ramifications of student loan forgiveness in the long- term. However, it is possible to determine that underserved minorities are benefitting directly at this moment, and it appears Republicans are racing to halt that.

The views articulated in this piece are the writer’s own and do not necessarily reflect the official stances of The Progressive Teen or High School Democrats of America.

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