Where President-Elect Joe Biden Stands on Student Debt Relief

The 2020 election made it clear that the next President has many issues to address. While containment of the coronavirus often took center stage during the campaigns and debates, it was also clear that student debt still reigns high on voters’ minds. Now that the election is over, it is now possible to begin working toward making sure that the incoming administration understands the importance of making the best decisions to help student borrowers.

What Are Joe Biden’s Campaign Promises?

At this point, President-Elect Joe Biden hasn’t promised to do anything specific regarding student debt, but he has made several important announcements.

During his campaign, he repeatedly announced his support for a provision pertaining to student debt in the HEROES Act. This stimulus bill proposes giving economically disadvantaged borrowers $10,000 of immediate loan forgiveness.

It is important to note that Biden has stressed that being economically disadvantaged refers to people who are choosing between being able to pay their student loans or their mortgage. Essentially, this provision is meant to help the most cash-strapped borrowers in America, but it still leaves out many others.

Can Joe Biden Just Erase Student Debt as the President?

A topic that comes up during every election is the question of just how much power the sitting President actually has to make far-reaching legal changes. Technically, the President might be able to cancel student loan debt through an executive action, but it would likely lead to lengthy legal battles.

Instead, Biden has mentioned that he would much rather address the issue of student debt through Congressional action. This could occur through the inclusion of student debt relief in a stimulus package. This might only temporarily resolve the issue, but it could get people talking about more permanent solutions.

Biden might also be able to get his proposals passed through Congressional legislation. This option demands more cooperation between the two main political parties, but it also leads to longer terms for the legal actions.

Why Should the Incoming President Prioritize Student Debt Relief?

When you consider that approximately one in five adults between the ages of 30 and 44 and one in 3 people between 20 and 30 have student debt, it becomes clear why relief matters. These ages are a time when many people are in their prime purchasing time of their life. From buying homes to cars and child-rearing supplies, young adults are struggling to make ends meet when they have high levels of debt.

Lowering the interest rate on these loans to zero makes it possible for these adults to stimulate the economy. They can also begin working on making long term investments in their future earlier, which pays off when they hit retirement age.

Is Joe Biden’s Plan Enough to Relieve the Burden of Student Debt?

There is no doubt that erasing existing student debt for thousands of Americans is an effective way to provide temporary relief during a challenging time in our nation’s history. Yet, the issue still remains that more debt will continue to grow in the future. There are also concerns about the thousands of other people who are left out of the current plan.

Several politicians have also made their claim that the current proposal from Biden is not enough. Senator Elizabeth Warren and Chuck Schumer worked together on a proposal for $50,000 of debt to be forgiven for borrowers, which has a much wider outreach for erasing debt. There have also been other discussions about offering free community college to students, which is a proposal that Biden has shown support for in the past.

January is upon us, and the new year represents the opportunity to make the future brighter for everyone who values higher education. Although President Elect Joe Biden stands for making changes to counteract the growing problem of student debt, it may not be enough. Let’s continue to share our stories, write our politicians, and raise awareness about how zero interest loans can positively impact everyone. We’ve got a great start on making progress, but our job is still not done until every student benefits from interest-free loans.