The student loan debate continues

3/22/2021

Quinn Luce

Progressive democrats continue to call on Biden to forgive student loans.

The price of college is rising eight times faster than wages. On average, a four-year degree in 2016 was $100,000. In, 1986 it was $26,000 ($52,000 adjusted for inflation). Today in the U.S., there are 44 million Americans in student loan debt, with an average of $32,000 owed. Student loan debt is the largest source of debt besides housing in the U.S.

The student loan crisis has caught the attention of Democrats in Congress. Senate Majority Leader Chuck Schumer and Senator Elizabeth Warren are leading the push for $50,000 student loan forgiveness. On February 4, Democratic lawmakers started drafting a bill to cancel $50,000 of student loan debt, putting pressure on President Joe Biden to pursue executive action.

Lawmakers late last year concluded that the Secretary of Education could legally cancel student debt according to The Higher Education Act, but many still question the legality of passing this legislation through executive action.

In response to the $800 billion cost, Democratic supporters of this action argue that the bill would ultimately lead to a better economy because financial support results in more spending and economic stimulus.

Republican and centrist democrat opposition argues that the bill would not bring the economic benefit that Democrats describe and ultimately would be a waste of money since it would only result in a small increase in yearly GDP.

The bill applies to all who make less than $125,000 a year. In early February, Senator Warren stated that, “canceling student loan debt is the single most effective executive action President Biden can take to lift the economic prospects of tens of millions of young Americans.”

President Biden’s team has expressed his support for $10,000 student loan forgiveness but in a CNN town hall, he explicitly stated that he does not support the $50,000 version of student loan forgiveness. On February 16th, an attendee told the president, “We need student loan forgiveness beyond the potential $10,000 your administration has proposed. We need at least a $50,000 minimum. What will you do to make that happen?” “I will not make that happen,” Biden quickly responded.

He later elaborated and gave three distinct reasons for why he rejects the idea. First, he argued that the majority of people who would receive forgiveness would be high-income individuals attending “elite colleges.” Second, he said that the money would be better spent on providing early childhood education for low-income families. Third, he simply stated, “I don’t think I have the authority.”

The most recent COVID relief package included a provision that makes some think student loans are still on the president’s radar. Before the most recent package, any student loan forgiveness would have been classified as taxable income. The bill changes this to ensure any potential loan forgiveness does not burden low-income Americans with a sudden spike in their taxes. Shumer and Warren are now continuing to pressure the president through a review on the legality of using executive action to forgive student loans.

Back

B-Line

B-Line students write articles that capture what it means to be part of the Barstow community, and record, review and analyze current events.

B-Line's origins date back to 1897, when students published "The School Paper," from Barstow's Quality Hill campus. It was published under various names in following decades, including "The Cornpatch," when Barstow moved to State Line in 1961. Today, B-Line is primarily a digital publication.

“Success in any line of work demands one know how to communicate with others concisely and persuasively.”

Adviser

List of 1 members.

Lucia Scott
Bio
Ms. Scott is an expert in communications, both spoken and written. Besides leading the staff of student journalists at B-Line, she teaches Advanced Debate and middle school Introduction to Debate, International Studies and Current Events.

She attended high school in the Wichita area where she occupied herself with debate and writing. Ms. Scott obtained her degree in secondary education (speech/ theatre) with a minor in communication studies from Kansas State University. She received her master’s degree in communication from Baylor University in 2018.

She believes every student should be a capable communicator and self-advocate shaping their own future. She finds that both mass communication settings like B-Line and rhetorical settings like debate prepare students for their future.