Almost exactly three months ago, President Biden announced his three-part plan for student loan debt forgiveness for middle or low-income individuals who have received federal loans. Part 1 of this plan was to extend the student loan repayment pause to June 30 of 2023. (It was originally the end of 2022, but changed recently due to court orders regarding the Part 2 plan). Part 3 is somewhat vague at the moment, but nonetheless essential, as it aims to create a more affordable and sustainable repayment plan for student loans. What the media is mainly covering at the moment is Part 2: loan cancellation for up to $10,000, and $20,000 if the individuals have received a Federal Pell Grant during their college education. The application for this debt relief started on October 17, until the Department of Education had to stop accepting the applications on November 11. Why the early closure? Well, because lawsuits are inevitable when big money is involved.
It took about 50 days since Biden announced the debt relief application to officially open, and a lot has happened during that short period of time. The Biden-Harris administration, the Secretary of Education, and the Department of Education have been sued by many, including six states and several other individuals or groups concerned about tax payment and plans. These individuals include Mark Brnovish, attorney general of Arizona, Brown County Taxpayers Association located in Wisconsin, and Myra Brown and Alexander Taylor, a couple of college graduates who were not eligible for the relief and perceived the plan as unlawful. Although many of these lawsuits were initially dismissed, they are creating long-lasting effects after several appeals. The Department of Education continued to invite the applications even during the temporary suspension on October 21, but had to come to a close only twenty days later on November 11 as the U.S. District Court for the Northern District of Texas, blocked the plan the day before. Three days later, another move was made at St. Louis court to stop the student loan forgiveness. Meanwhile, the Biden administration immediately filed an appeal to the Supreme Court on November 10 to overturn the current orders. They also recently extended the student loan repayment pause from December 31st, 2022, to June 30th, 2023, to “alleviate uncertainty for borrowers.”
Regardless of an individual’s position on this matter, it is clear that hundreds and thousands of people in this country are in great financial pain due to debt, and a considerable amount of that comes from student loans. Coming from a country where most public transportation is about a dollar, where $10,000 per year for college tuition is rare and regarded as extremely expensive, attending an academy that cost my middle-income family around $30,000 per year was an excruciating experience. “American Dream” sounded like a big deception or a legendary tale. Nothing seemed possible in this country unless I had money. One might argue that it depends on the region you live in, but living in a place where everything is available means one has the money to afford living there. There is hardly anything you cannot find in New York. But can you pay thousands of dollars per month for your studio apartment?
In a country where means of transportation, housing, education, and many other essential tools to maintain our daily lives can only be acquired from big bucks, where do I find that money if I don’t have a job to pay for it? Banks. Loans. And, of course, most people in many countries get loans during their lifetime. Loans can come in handy during big life events, such as marriage, purchasing a house, or unexpected surgeries or treatments. Loans can also be helpful when building your credits. But the problem in this country is that people find the need to borrow too much money too early in their lives when they do not even have the means to pay them back. This is a master recipe for ruining credits and limiting the options to loans that charge heftier interest rates in the future. (Hello, 2008?)
According to a study by The Brookings Institution in early 2018, two percent of borrowers had more than $50,000 in federal loans when they graduated from college in 1992. The percentage increased to 17% in 2014, and who knows where the statistics will be this coming spring of 2023. And I know I would have added to the number if it was not for the generous scholarship provided by Andrews University and the alums. I also know this is a luxury and privilege given to a few. Yet, life is given to everyone. Thus I believe we all must ask ourselves why this country works in a way that makes life extremely painful for many. Extending the loan repayment date or forgiving $10,000 or $20,000 will not solve this issue, but that is why there is Part 3 to the plan. Also, that money will provide room for breathing for many. If the current administration’s approach has the potential to cause severe economic problems in the future, then different solutions should be proposed instead. This problem can’t just linger around forever. In fact, the problem has intensified so much that youth cannot handle this problem anymore without a radical plan coming from the government. And that is not something that happens in a sustainable society. So I hope that a reasonable resolution will come from the Biden-Harris student debt relief plan, and many other problems present in this country, because problems are rarely problems but more like a crisis to the vulnerable population.
The Student Movement is the official student newspaper of Andrews University. Opinions expressed in the Student Movement are those of the authors and do not necessarily reflect the opinions of the editors, Andrews University or the Seventh-day Adventist church.