President Biden last week fulfilled a campaign promise and forgave $10,000 in student loan debt, and $20,000 for students who received Pell grants. Given that the federal government is still receiving $2 billion annually in loan repayments out of a possible $6 billion, some students were still making loan payments even though they were not required to do so.
The average student loan debt is just north of $30,000, with some student debt levels exceeding $200,000, but for about 20 million students, Biden’s loan forgiveness program will completely eliminate all of their student debt obligations. Surprisingly, Biden’s actions have caused an uproar in certain political circles. The President’s critics are claiming that his actions are both inflationary and unfair to others.