Why am I now paying for everyone else? Student loan Debt is their responsibility, not mine- How Did We Get Here August 24, 2022 I paid off my loans, I put my kids through college by work hard. A common sentiment has been: What about those who already paid off their loans? Or didn't take out loans at all? How is this fair to them? The concept of fairness has also come up repeatedly among critics of student debt forgiveness. So debt cancellation, especially one that's broad based, could be seen as, you know, making good on the government's promise to those borrowers." "There's a question of fairness to borrowers who were hoping to rely on those programs in order to see some debt relief," Bass says. We have income-driven repayment, which are both repayment options that promise debt forgiveness or debt cancellation already within the higher education system," he says.īut, he said, the Government Accountability Office and other government watchdogs have found that those programs have not been working. "We have public service loan forgiveness. President Biden's plan forgives up to $20,000 of federal student loan debt for Pell Grant recipients, and up to $10,000 for other qualifying borrowers.Īnd speaking of promises, Bass also points out that debt forgiveness as a concept is not new. And says there needs to be a way to hold colleges accountable when students don't get the promised education that helps them compete in the job market and become economically secure. He also wants to see the cost of college addressed immediately. So it's no wonder that we have a student debt crisis." 1 form of assistance that we provide to students. He says increasing access to grants and cutting overreliance on loans is key. "I think that debt cancellation is the first step," says Jared Bass, senior director for higher education at the Center for American Progress. What about the generation currently planning, applying and packing for college, signing promissory notes as a new school year looms? How can the root causes of the student debt crisis be addressed?
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Pari's PLUS loans highlight the need for a longer view on higher education costs. And I'm hoping that this nightmare ends." At the root of a crisis "The weight of the student loans bears on every other decision that I tried to make," she says. She says she never had a chance to build any savings, so she didn't have another choice.ĭue to crippling interest, some people owe more than when they first took out the loan. Two of her kids are in college now, so she has also taken out two PLUS loans to pay their tuition and expenses. Interest accumulated and she now owes more than she originally borrowed.
As a single mother with one source of income, she's had to pause the payments several times. Pari has student loans more than 20 years old. "Millionaires and big corporations got yet another blank check." "PPP loans, plus interest, were forgiven without question or explanation," she says. And she feels angry when she sees it compared to other government debt forgiveness. Pari, a 51-year-old paralegal who didn't give her last name for privacy reasons, wants to see all student debt canceled, too. He says while he understands how many families will be thrilled with the latest announcement, it wasn't what he was hoping for.Īnd he isn't alone in his disappointment. Or at least cancel the interest and go back to the original borrowing principal." "I really think that our government needs to cancel student loans altogether.
"My monthly payments are at $835 a month," he says.
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