Student loan debt in the U.S. currently totals more than $1 trillion, with some predicting it will only get worse as tuition increases continue to outpace inflation. Recently launched federal student loan forgiveness programs were intended to provide relief to some of these borrowers, but the plans’ unexpected popularity has created a new set of concerns.
[,,,]
To address the possible risky behavior brought on by the program, the report authors suggest eliminating the forgiveness program altogether. However, to still provide incentive for students hoping to working in the public sector, they suggest providing direct benefits, such as tax credits, to all workers instead of those who just borrowed to pay for college.
While doing away with the program doesn’t seem to be in the cards just yet, the government is poised to make changes. To stifle the growing tab, the administration is proposing a cap for debt eligible for forgiveness of $57,500 per student and extending the forgiveness window to 25 years.
The Wall Street Journal reports that it is unlikely Congress will pass any of the changes this year, but that the proposals are meant to ensure the “neediest borrowers” continue to benefit from the program.
Still, some opponents of the plans suggest there are other options or programs that could help solve the overarching problems of the trillion dollars in outstanding loans currently held by students and the rising costs of college.
Student Loan Forgiveness Plans Could Be A Victim Of Their Own Success – Consumerist
No comments:
Post a Comment