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Student Loan Forgiveness
3 years ago
So, my brother's wife shared with me, my family, and her family a letter she sent to Biden, and senator Booker and Menendez. It was about student loans. The resulting email chain talked more about 'modest' student loan forgiveness programs but how the 'middle class would be made to pay' (which is true).
I wrote up this email response and shot it off.
Multi-pronged approach;
#1) College affordability. Free access to 2-year degrees and most 4-year degrees from public institutions. Hold for-profit colleges to account for financial predatory behavior. End predatory loans.
#2) Tax the rich and corporations. Enforce laws already on the books equitably; no more underfunded IRS only going after poor and middle income because they are 'easier to audit'. No more billionaires buying Twitter for the combined cost to end hunger and homelessness in the United States.
#3) Work-based learning. Paid internships, on-the-job training programs, and apprenticeships all in partnership with community colleges and businesses that seek a skilled workforce. Work-based learning programs have excellent outcomes for students to both get higher education and a living wage career with advancement pathways.
My role serving a network of nonprofits, community colleges, state agencies, businesses and jobseekers (particularly from Black, Indigenous and People of Color and other marginalized communities) in the largest county in Washington state has afforded me access to hundreds of perspectives on workforce development, the role and affordability of higher education, and barriers people face trying to find a family-supporting career. I have been granted opportunities to listen, learn, and to then speak on their behalf at the state and national levels and use my voice for advocacy.
As someone who is lower-middle class (in Seattle, middle class income is $81k - I make $67k) and has $12k in private, unsubsidized student loans, I recognize that any form of 'cancelling' student debt will trigger a transfer of up to $1.7 trillion dollars from the Dept. of Treasury (through the Dept. of Education) to loan servicing companies. All of us right now pay more in taxes than the wealthiest corporations so without equitably enforced taxation the middle class will shoulder this burden as Lauren suggested. Borrowers like me would have our loan debt wiped out but without college affordability reform future students may end up in even more debt. Work-based learning pathways can further reduce the burden of future debt as students earn an living wage income while working and learning on the job in the career field they enjoy.
The Public Service Loan Forgiveness program will only forgive student loans after 120 months of 'eligible' payments made while working in nonprofit or government. The only Biden action that has affected my loans is that payments made since I began working in nonprofit in 2019 could now be considered eligible; but with loan payment forbearance during the COVID-19 pandemic, I have only 15-20 months that might now qualify. Once forbearance is over, the interest I will accrue will likely be more than what would be forgiven after another 8 years of public service. I will most likely need to pay off the entire loan at once as soon as interest is set to accrue once more.
I do not know what will happen next, but I believe we have enough information to make reasonable predictions. There is a non-zero chance that Biden will cancel/forgive/erase any amount of student loans. It is much more likely that the topic of will-he-wont-he, can-he-should-he, will be dangled in front of us like a set of jingling keys before the midterms. Any action to actually forgive debt would most likely be taken just before or during the midterms. I believe that in the end, no action will actually be taken, no debt will be forgiven, and at best some token bureaucratic imbroglio will make headlines but not significantly alter the status quo.
This does not mean I am pessimistic about our future or the future of millions like me with student loan debt. Change is happening at the local and state level. Community colleges are stepping up as best they can with tuition assistance programs. Businesses are buying into work-based learning programs. Loan-saddled jobseekers are refusing to take low-wage jobs that exploit them and keep them in debt. I am removing barriers for tens of thousands of people so they can get skills training, get educated, get hired, keep their jobs, advance in a career pathway. I see greater opportunities ahead to change processes, fix or replace outdated systems, and create a paper trail for systemic improvements.
Things will get worse before they get better. But they will get better. We will make it better, for everyone, together.
Love,
[Balros & Echoen]
I wrote up this email response and shot it off.
Multi-pronged approach;
#1) College affordability. Free access to 2-year degrees and most 4-year degrees from public institutions. Hold for-profit colleges to account for financial predatory behavior. End predatory loans.
#2) Tax the rich and corporations. Enforce laws already on the books equitably; no more underfunded IRS only going after poor and middle income because they are 'easier to audit'. No more billionaires buying Twitter for the combined cost to end hunger and homelessness in the United States.
#3) Work-based learning. Paid internships, on-the-job training programs, and apprenticeships all in partnership with community colleges and businesses that seek a skilled workforce. Work-based learning programs have excellent outcomes for students to both get higher education and a living wage career with advancement pathways.
My role serving a network of nonprofits, community colleges, state agencies, businesses and jobseekers (particularly from Black, Indigenous and People of Color and other marginalized communities) in the largest county in Washington state has afforded me access to hundreds of perspectives on workforce development, the role and affordability of higher education, and barriers people face trying to find a family-supporting career. I have been granted opportunities to listen, learn, and to then speak on their behalf at the state and national levels and use my voice for advocacy.
As someone who is lower-middle class (in Seattle, middle class income is $81k - I make $67k) and has $12k in private, unsubsidized student loans, I recognize that any form of 'cancelling' student debt will trigger a transfer of up to $1.7 trillion dollars from the Dept. of Treasury (through the Dept. of Education) to loan servicing companies. All of us right now pay more in taxes than the wealthiest corporations so without equitably enforced taxation the middle class will shoulder this burden as Lauren suggested. Borrowers like me would have our loan debt wiped out but without college affordability reform future students may end up in even more debt. Work-based learning pathways can further reduce the burden of future debt as students earn an living wage income while working and learning on the job in the career field they enjoy.
The Public Service Loan Forgiveness program will only forgive student loans after 120 months of 'eligible' payments made while working in nonprofit or government. The only Biden action that has affected my loans is that payments made since I began working in nonprofit in 2019 could now be considered eligible; but with loan payment forbearance during the COVID-19 pandemic, I have only 15-20 months that might now qualify. Once forbearance is over, the interest I will accrue will likely be more than what would be forgiven after another 8 years of public service. I will most likely need to pay off the entire loan at once as soon as interest is set to accrue once more.
I do not know what will happen next, but I believe we have enough information to make reasonable predictions. There is a non-zero chance that Biden will cancel/forgive/erase any amount of student loans. It is much more likely that the topic of will-he-wont-he, can-he-should-he, will be dangled in front of us like a set of jingling keys before the midterms. Any action to actually forgive debt would most likely be taken just before or during the midterms. I believe that in the end, no action will actually be taken, no debt will be forgiven, and at best some token bureaucratic imbroglio will make headlines but not significantly alter the status quo.
This does not mean I am pessimistic about our future or the future of millions like me with student loan debt. Change is happening at the local and state level. Community colleges are stepping up as best they can with tuition assistance programs. Businesses are buying into work-based learning programs. Loan-saddled jobseekers are refusing to take low-wage jobs that exploit them and keep them in debt. I am removing barriers for tens of thousands of people so they can get skills training, get educated, get hired, keep their jobs, advance in a career pathway. I see greater opportunities ahead to change processes, fix or replace outdated systems, and create a paper trail for systemic improvements.
Things will get worse before they get better. But they will get better. We will make it better, for everyone, together.
Love,
[Balros & Echoen]
