$50,000 in student loan forgiveness gets another boost.
Here’s what you need to know – and what it means for student loans.
As President Joe Biden considers student loan forgiveness for millions of student loan borrowers, a new report sent to Sen. Elizabeth Warren (DMA) shows how $50,000 in student loan forgiveness could bring significant benefits. Here are the most important findings:
- $50,000 Student Loan Forgiveness: 30 million borrowers would have no student loan debt.
- $40,000 Student Loan Forgiveness: 28 million borrowers would have no student loan debt.
- $30,000 Student Loan Forgiveness: 24 million borrowers would have no student loan debt.
- $20,000 Student Loan Forgiveness: 20 million borrowers would have no student loan debt.
- $10,000 Student Loan Forgiveness: 13 million borrowers would have no student loan debt.
Warren and Senate Majority Leader Chuck Schumer (D-NY), both of whom have campaigned for forgiveness of up to $50,000 in student loans, are still pushing Biden to cancel that amount of student loan debt for millions of student borrowers . Civil society and social organizations have joined the fight to encourage Biden to consider a higher foreclosure on student loans. According to the latest student loan debt statistics, there are 45 million student loan debtors who collectively owe $1.7 trillion in student loan debt. Therefore, for the vast majority of student loan debt, canceling $50,000 in student loan debt would wipe out all state student loan debt. In contrast, the US Department of Education has said that $50,000 in student loan forgiveness would eliminate all federal student loan debt for 36 million student borrowers.
Student Loan Forgiveness: Key Benefits of $50,000 Student Loan Cancellation
According to researchers from Princeton and the University of California who conducted this analysis, there are several other benefits of larger amounts for large-scale student loan forgiveness. This includes but is not limited to:
- $50,000 in student loan forgiveness would help 95% of student loan borrowers who are in default or in arrears;
- Greater student loan cancellations mostly benefit high-net-worth student borrowers, since wealthier individuals rarely take on or repay student-loan debt faster; and
- Eliminating $50,000 in student loans will greatly reduce disparities and inequalities.
Regarding student loan forgiveness, the authors argue that more student loan foreclosures are better for promoting equity and economic security. Opponents of student loan forgiveness disagree, citing the potential cost of $1 trillion to cancel $50,000 in student loans to borrowers. They also note that potentially millions of student loan borrowers could be excluded from Biden’s student loan writ.
Will Biden Cancel $50,000 in Student Loans?
Will Biden Cancel $50,000 in Student Loans? Biden has now canceled $25 billion in student loans. The White House has denied a report that the President had made a final decision to end student loans. This has sparked renewed hope among progressives and student loan forgiveness advocates. However, Biden has backed the cancellation of $10,000 in student loans. As the authors argue, forgiving $50,000 in student loans would have tremendous social and economic benefits for student loan borrowers. Biden has said he will not call down $50,000 in student loans for borrowers. With consumers grappling with high inflation, record gas prices, a stricken stock market and economic uncertainty, Biden could reconsider and cancel up to $50,000 in student loan debt for borrowers. When the President decides on the next steps, invest the time to think about your next step toward paying off the student loan. Even if the President cancels student debt, you may not qualify or you may still have student loan debt. Therefore, consider all your options to get out of debt and save money. Here are some popular ways to overcome student loan debt: