President Joe Biden signed an executive order extending the freeze on the Student Federal Loan payments which were enacted by the Trump Administration as part of the COVID-19 relief package.
President Biden authorized his Secretary of Education to cancel the student debt by signing an executive order. Many legal advisers had urged President Biden to cancel out the student loan completely, but he is still undecided about this suggestion.
The critics have slammed this decision of Biden stating that the total forgiveness of loan debt will unfairly benefit the population who are situated in the high-income circle. Conservatives and Liberals, both hold the same point of view that when individual files for a loan, he knows it’s his/her responsibility to return it within the given time frame.
Initially, President Biden was hesitant to cancel the student loan bypassing Congress, but as the pandemic lingers on, it becomes near too impossible for the public to pay the debts as the economy is still trying to cope up with the pandemic.
According to President Joe Biden, the student loans should be given with 0% interest, as the repayment is frozen until September. He canceled the debt for students and expanded the loan forgiveness of students for the public sector.
Unlike the Senate, Congress might not pass the bill of student loan freeze easily.
The same holds for college students. College education expenses have surged as higher education has become more and more unaffordable without loan assistance for many deserving students.
According to Federal Reserve Data, almost $1.7 trillion is reserved in student loan debt.
Previous administrations did provide relief in student debt, but none forgave them completely unlike the current Biden Administration.