Borrowers who started college but never finished will be disproportionately affected by the Supreme Court’s ruling on student loan forgiveness.
They find it particularly challenging to manage their student loans because they do not have the advantage of better earning potential.
Student Loan Forgiveness Proposal Shows Education Debt
The Supreme Court’s upcoming ruling on President Joe Biden’s student loan forgiveness scheme will, at the very least, shed additional attention on the colossal load of student loan debt.
Borrowers are finding it harder and harder to make ends meet due to mounting debt. Borrowers owe a total of $1.7 trillion as of the most recent calculation.
Managing such a substantial amount of debt is particularly challenging for students who begin college but never complete their studies.
The number of students who started college but dropped out increased 3.6% in the 2020–21 academic year, according to the National Student Clearinghouse Research Center, even while total college enrollment losses have stabilized.
More than 40 million pupils are no longer enrolled in school.
According to a Sallie Mae research, the majority of students who postponed their education cited a lack of desire or a change in their personal circumstances as the reason.
Others list financial difficulties first, then problems with their mental health.
However, House Republicans passed a bill this week raising the nation’s debt ceiling, and if it is approved, it will have a direct effect on the tens of millions of Americans whose student loans were promised to be forgiven.
Read more: $78,000 In Student Loan Debt Wiped Out In Court Thanks To Biden Administration Guidance
Raises Debt Limit until 2024
Two key components of President Joe Biden‘s student loan forgiveness plan would be eliminated under the legislation: the one-time debt cancellations for more than 40 million Americans and the updated repayment option, which would have reduced monthly payments by half.
The $31.4 trillion debt ceiling would be raised by the 320-page law, which was approved by a slim Republican majority, until March 31, 2024, or until the debt climbs by $1.5 trillion.
Chuck Schumer, the majority leader in the Senate, however, predicts that the bill would be dead on arrival in the Democratic-controlled chamber.
The GOP proposal, which they claim is a win for taxpayers, criticizes a number of Biden’s tax policies as well as his expansive student loan forgiveness plan.
Although lawmakers from opposing parties agree that the current student loan system is flawed, they take different approaches to fixing it.
Read more: Is There Possibility Of Joe Biden Winning A Second Term In 2024?
