The government’s student loan forgiveness plan begins in New York. Over 50,000 students who graduated from CUNY will have a cumulative $125 million of unpaid student debt forgiven. And, not only will they be given student debt forgiveness but they’ll also receive financial support.
This move comes as a part of President Biden’s student debt focus. The average CUNY student has a debt of $2,000. The loan forgiveness will go a long way towards their recovery.
The Path to Recovery
New York was one of the earliest hit with the COVID-19 pandemic, with the city shutting down to prevent the rampant spread of the disease. According to Cuomo, Many New Yorkers' lives were affected, and it was students who were among the most to feel it. The relief hopes to help people get back on their feet as Biden's student loans plans begin to take effect.
Many students suffered from issues in employment, income, and housing in the past year. These new plans come with the current government’s implementation to allow universities to use federal stimulus. Students will be able to pursue their education without fear of unpaid tuition.
CUNY is one of the largest university systems in the state, with over 25 campuses. The state government also agrees with the cancellation of outstanding debt as it will help with New York’s recovery.
A Nationwide Approach?
While this move towards student debt forgiveness is a welcome sight, the government still has some divisiveness. With all the plans of stimulus checks and support, hyperinflation is an issue. President Biden also has to account for the country’s outstanding debt of over $1.6 trillion.
Student loans are a big part of the country’s debt. Over half of all university and postgraduate students have to get loans to pay for education. This number has been growing year after year. It can take anyone 10-30 years to pay these loans off fully. For many, the move of forgiveness is a relief.
Some officials are imploring President Biden to be wary when implementing his plans. Others are pushing for more forgiveness and that the government should carry the majority of a load of repayment. Some experts believe that loan forgiveness should not be the only approach.
A Start for Better Solutions
No one can deny that student debt forgiveness will have a positive effect. It will allow people to start families, move forward with their careers, and buy homes. However, there is still the root of the problem. It doesn’t change the fact that college-level education is expensive. Here are some other things that can start to cut down the accumulation of student debt:
- Lower rates for loans.
- Income-based repayment plans to help settle student loans faster.
- Three-year degrees.
- Tuition models that are the same for each class.
The President Biden student debt plan will make waves for the current pandemic-stricken crowd. As long as the federal government remains focused, then a brighter future is possible.
