Fresh graduates in America are students who most in debt around the world. So this news comes as a tremendous boon to students all over the country. The total US student loan debt is over a trillion dollars. This policy does not cover this entire amount, only federal loans which are currently valued at 137 bn dollars. They’ve gone a little lower down and put the forgivable loan debt at 108 bn dollars. This plan was detailed in the Wall Street Journal.
These do come with some regulations, though. According to The New York Times, “The plans set monthly payments as a percentage of borrower’s income and extend repayment from the standard 10 years to upto 25 years. After that, remaining balances are forgiven.”
This is basically for students who have been paying their loans regularly and after that specified time period of 25 years they will no longer have to pay their remainder of their loans.
The mainstream media’s reaction to all of this has been quite hilarious as all of them are so confused as how the government is allowing this to happen. If a businessman who goes bankrupt, that’s okay but God forbid if a students who are struggling to make ends meet is forgiven of their student loans. That’s ridiculous.
I think this is a very progressive move to the United States and I hope they increase measures to help the total student debt to be forgiven, but that policy would have a lot of opposition. Maybe a Donald Trump presidency could lead to rebellion and progressive policies being upheld in congress. This is just a start and maybe a one off situation.
In this world of injustice, all we can do is dream.
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