Opinion: Student debt relief more important now than ever
In his first few days of term, newly-inaugurated President Joe Biden has made and requested many changes to the United States government. One change, in particular, being the pause on the payments of student loans until September of 2021.
This extension will give struggling students and families time to collect money to repay their loans while Biden works to relieve a majority of Americans’ debt with the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
According to an article by Kate Smith for CBS news, with the help of the Department of Education, the administration can begin addressing the national debt crisis that came to over $1.5 trillion. The new administration also set the national interest to 0% while closing up collections.
Many politicians, including Biden, believe that Americans in low-income households should not have to choose between a paycheck and their health, or the health of their loved ones. The relief package is said to give all 9 million Americans who missed their stimulus checks another chance.
Washington Post writer, Danielle Douglas-Gabriel, expressed the thoughts of notable White House staff members, saying, “Brian Deese, the incoming director of the National Economic Council, said the administration supports forgiving up to $10,000 in debt per person through congressional action.”
Although, many people do not believe that it will be possible for the slim majority of Democrat Senators to pass the bills required to forgive the debt for millions of Americans.
In an article by Annie Nova for CNBC, she talks about the hopes that many Americans have for the president’s promises to forgive debt and give them a chance to get their priorities straight. However, Nova warns that those with debt shouldn’t hold their breath: “Vaccinating people against Covid, reopening schools and getting financial relief to unemployed and food-insecure Americans will likely take priority.”
While relieving debt is a step in the right direction, especially for recent graduates, low-income students/families and racial minorities who suffered before the pandemic, the process towards relief is not as simple as it seems. Despite this, many Americans cannot even start to think about a vaccine or their healthcare plan until their financial security is stabilized.
Taking payments from other government branches, including military, may help to fund the debt relief effort, but the direct effects of the pandemic and development/dispatch of a vaccine are one of the #1 priorities of the administration.
While coronavirus prevents many people from going to work, many companies and services are finding ways around that. And with the increase of testing and treatment plans available, it’s becoming easier for people to find work, specifically online. But the financial crisis has been plaguing long before 2008, and the sooner we act on repairing the system, the easier it will be for students and families to overcome the trials of today.
Despite the challenges that the debt-relief effort will face in the next year, the CARES Act, will help a lot of people in need. Today, even students at USU can apply for the aid online to see if they qualify for relief.
As inflation has increased over the years, the minimum wage gap has not risen to match it. Today, the minimum wage is around $7.25, depending on the state, but according to the increasing pace of inflation since 1968, the amount should be $12 per hour. Taxes and loan rates do not match the salaries of most Americans, especially for women, people of color, immigrants and low-income households such as students and single mothers.
The debt crisis needs to be addressed before things fall apart, like they did in 2008, and millions lose their money and jobs. The administration needs to act now to sustain the livelihoods of students across America in order for our country to get through this pandemic, together.
Megan Cowdell is a freshman opinion columnist studying for a bachelor’s in Communications. She loves music, reading and wants to write books for a living.
megan.cowdell@usu.edu