Biden has been falling short of his campaign promises. There are no free public universities, COVID is still a problem, we have inflation that we just cannot keep pace with, and marijuana is still federally illegal. With the inflation that has befallen America, jobs that claim they are hiring aren’t taking on anyone. Instead, they just keep crying about a lack of employees.
Since people who have borrowed money for school cannot find work to pay for that knowledge, Biden has extended the student loan deferment plan. With an interest-free and no payment-required period now until September, Biden is giving borrowers a chance to pay other bills, find better work, or pay down their balances without worrying about the interest. Yet, for people who took private loans, they are completely out of luck, as the Biden administration cannot impose that rule on private institutions.
When it comes to those in forbearance or default, they have had an even murkier time trying to get back out of this status. While the Biden program can help keep them from being dragged to court, until recently, it had not done anything else for them, nor did it guarantee them the same freedom other borrowers have received until now. Within the passage of this latest extension, he has also introduced a program to get people out of a negative status on their loans.
Through the U.S. Department of Education, thousands of borrowers will be pulled out of default or forbearance and back into a currently on-time status. The repayment problems borrowers have been having predate the pandemic, and they have been trying to find a way around the problems for some time now. From underpaying jobs to skyrocketing housing costs to overinflated education costs, students have been having a harder and harder time paying college off.
As many people of Biden’s generation love to claim that their summer jobs paid for college, the average cost of tuition and fees is three times more expensive now than in 1970. That’s when you consider inflation. On a dollar-to-dollar scale, it is 30 times more expensive. It’s bad enough when inflation has killed the value of a dollar, but when the costs are even outpacing inflation, it gets even worse.
One of these costs comes from the numerous scholarships being given to athletes, foreign exchange students, and legacy applicants. Then, there are the added costs of faculty and staff for completely useless degree programs like Gender Studies, Liberal Politics, and Philosophy. These programs (and many like them) are only worth it if you make it into the 16 or so positions teaching them to academics (which would require a Ph.D.), or if you get incredibly lucky and fill a position for this in politics. Most of which are just handed to people who paid the right contributions to someone’s campaign.
Biden’s steps to help students have time to pay down the debt is one of the very few intelligent decisions he has made since he took office. By allowing students a chance to just focus on the principal, it can allow the federal borrowers a chance to get their money back without expensive litigation. It gives the youth of today some hope in their government and allows those already living on a tight budget a chance to get their bills paid off without needing to take private loans or bug their families. God knows they are already tight enough financially, too.