Biden offers student loan plan

An article from MSNBC says Joe Biden has crafted a proposal that would offer $10,000 in debt relief to those of the 46 million Americans with student loan debt who choose to work in public office. With student loan debt currently the second largest form of household debt in the country, a debt relief proposal could help millions of families.

The proposal states that “individuals working in schools, government and other non-profit institutions will be automatically enrolled in this forgiveness program; up to five years of prior national or community service will also be eligible.

RELATED: Your divorce could cost you more if you have student loans

Forbes listed the current national student loan debt at $1.56 trillion with the average amount of student loan debt per borrower at $32,731. They also list the average student loan payment at $393 per month.

Sandy Baum, a senior fellow at the Urban Institute and professor emeritus of economics at Skidmore College, told MSNBC the policy would be a “positive step.”

“One of the main benefits of this proposal would be that we would incentivize more people to do public service work,” Baum explained.

Since 2019, Workforce listed the total number of employees in the public sector, including federal, state, and local, at 21,697,980. These public sector employees had an average annual salary of $56,870. With the average monthly student loan payment at $393 per month, debt relief could eliminate the average $4,716 that these employees spend each year.

The student debt crisis seems to affect women and people of color disproportionately. According to American Association of University Women (AAUW), women hold about two-thirds of the country’s massive student loan debt, totaling more than $929 billion in student loans. Black women ended up graduating with more student debt than other women. One of the reasons for the student debt crisis we are seeing is skyrocketing tuition and university fees.

the Business Intern explains that the cost of an undergraduate degree increased by 213% for public institutions and 129% for private institutions from the 1980s to 2018. Despite this, the Pew Research Center tells us that real wages have barely budged. This leads families to be buried in student loan debt.

According to Bureau of Labor Statisticsthere was a decrease of 216,000 government jobs in September 2020. Whether because of the pandemic or the loss of funds to support their salaries, it would seem that workers are preparing to leave public sector positions. With an incentive, like canceling student debt, we could see these workers stay in their jobs, resulting in lower overall costs for local and state governments, as well as the benefit for families of not having to pay hundreds of dollars every month for their student. loans.

The Biden proposal, while it won’t necessarily help everyone, would make a big difference for those working in the public sector. As we continue to depend on government employees, like teacherswe need to see how we can encourage more University graduates to choose the public sector. It would also be a step towards solving the student debt problem that millions of families feel.

SOURCES: MSNBC, American Association of University Women, Forbes, Workforce, Business Intern, Pew Research Center, Bureau of Labor Statistics

READ NEXT: I had $10,000 in debt and here’s how I paid it off quickly

Couple exercising

Want to improve your sex life, mom? Researchers Say You Should Train More Then

Read more

About the Author

Comments are closed.