Student Debt Emergency Relief

The house Democrats have been targeting student loans for a while now, and the coronavirus pandemic has only strengthened their efforts. They're now calling for $30,000 of federal student loan debt to be forgiven for all borrowers, and for the government to make the payments for all borrowers with remaining debt after that. This could be hugely impactful and would completely wipe out the student loan debt for many borrowers.

On top of that, it would save many others hundreds or even thousands of dollars throughout the remainder of the coronavirus crisis. As someone who's student loan payments total over $1,000 each month, I would be ecstatic if something like this passed. But a small part of me hopes that it doesn't, and it's the same reason why I think the republican party should jump all over approving this bill.

The root-cause of the student loan debt crisis is multifaceted, but it essentially boils down to the cost of college tuition greatly outpacing the increases in wages. Since the cause hasn't been addressed, this problem only gets worse each year as the gap between the cost of school continues to grow faster than the corresponding wages for graduates. That's why I think the republican party should be acting quickly to get this bill approved.

If this bill gets approved, it will help a large number of student loan borrowers during a massive economic downturn, and will likely satiate the Democrats appetite for student loan debt relief for the time being. The approval of the bill would also buy a little time to correct the problem at the source by setting limits on how much schools can charge for specific degree programs, or decreasing the amount that schools can increase their tuition prices.

If the bill doesn't get approved, it simply prolongs the problem, and puts more strain on the already stressed economy. The longer the student loan debt problem gets delayed, the larger the eventual windfall will be. That's why a small part of me actually hopes the most recent proposal gets shot down. I would love to have the government pick up a few of my qualified student loan payments while we're dealing with the coronavirus, but forgiving $30,000 of my $300,000 student loan balance would have a very minor impact on my overall strategy I would much rather have someone like Elizabeth Warren end up as Joe Biden's running-mate, win the 2020 presidential election, and find a way to forgive all student loan debt. That would end up saving me around $180,000 in student loan payments, and would net me much more as I could invest $1,000 more each month. Regardless, I'm hoping for big economic changes for student loan debt. The writing is on the wall. Now we just need to see how the government wants to deal with it.