Name: $10,000? $50,000? What different amounts of student loan forgiveness would mean for borrowers
Brand: cnbc.com
SKU: cnbc-com-115
Availability: OnlineOnly

critic

$10,000? $50,000? What different amounts of student loan forgiveness would mean for borrowers

preview

Key PointsIt whether student loan forgiveness will happen — and if it does, how much of borrowers' loans will be canceled.On the campaign trail,&nbsp;at least $10,000 for all borrowers, and more for those who attended public colleges or historically Black colleges and universities.However, amid the , Biden is under&nbsp;&nbsp;from members of his own party, advocates and borrowers to go further by forgiving $50,000 per person and .More from Personal Finance:"All you need is the flick of a pen," the Senate's top Democrat, Sen. of New York, about forgiving student debt. "You don't need Congress."&nbsp;Meanwhile, Sen. , D-Mass., describes student debt forgiveness as ", including the NAACP, the American Psychological Association and the National Consumer Law Center, are also calling on to cancel student debt through executive action. Close to people have signed a Change.org petition titled, "President Biden: Cancel student loans in the first 100 days."Many on the right argue that&nbsp;&nbsp;since college graduates tend to be higher earners who would likely redirect their monthly payment to savings rather than additional spending. On the other hand, advocates point out that it's low-income borrowers, women and people of color struggling most with student loans -- a pattern the pandemic has only exacerbated.Although Biden has expressed&nbsp; in the past, White House press secretary Jen Psaki suggested this month that the administration hadn't ruled out the possibility."The President continues to support the cancelling of student debt to bring relief to students and families," Psaki wrote in a Feb. 4 Tweet. "Our team is reviewing whether there are any steps he can take through executive action and he would welcome the opportunity to sign a bill sent to him by Congress."She didn't say how much of the debt the president supported canceling, but the proposals would have deeply different impacts.If all federal student loan borrowers got $10,000 of their debt forgiven, the outstanding education debt in the country would fall to around $1.3 trillion, from $1.7 trillion, according to higher education expert Mark Kantrowitz.And one-third of federal student loan borrowers, or 14.4 million people, would see their balances reset to zero.Canceling $50,000 for all borrowers, on the other hand, would shrink the country's outstanding student loan debt balance to $700 billion, from $1.7 trillion.Meanwhile, the $50,000 plan would forgive all of the debt for 80% of federal student loan borrowers, or 36 million people, Kantrowitz said.To be sure, there is&nbsp;&nbsp;and would still be left with large balances even after $50,000 in forgiveness. However, both amounts of debt cancellation — $10,000 or $50,000 — would clear the balances for the majority of borrowers struggling the most and in default.Democrats are pushing to cancel $50,000 in federal student loan debtSome people have been working from home for almost a year now. Do you love or loathe remote work? If you're willing to share your experience for an upcoming article, please email me at annie.nova@nbcuni.com.

Key PointsIt whether student loan forgiveness will happen — and if it does, how much of borrowers' loans will be canceled.On the campaign trail,&nbsp;at least $10,000 for all borrowers, and more for those who attended public colleges or historically Black colleges and universities.However, amid the , Biden is under&nbsp;&nbsp;from members of his own party, advocates and borrowers to go further by forgiving $50,000 per person and .More from Personal Finance:"All you need is the flick of a pen," the Senate's top Democrat, Sen. of New York, about forgiving student debt. "You don't need...

public

Annie Nova

cnbc.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

$10,000? $50,000? What different amounts of student loan forgiveness would mean for borrowers

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS