On August 25, Biden enacted a Student Loan Forgiveness plan where he planned to cancel student debt up to $10,000. This act plans to give students, or borrowers, a chance to apply for financial aid when they are making less than $125,000 a year.

You may be asking why this is important to you or what type of process you must endure to know if you can qualify for financial help. Forbes said that roughly “eight million federal student loan borrowers may receive student loan forgiveness automatically”, without any need for application.

Individuals who qualify for help should not need to worry about a long, strenuating process of papers and applications, especially full-time students who work in addition to their already long day on campus. 

Colleges are also back to an on-campus format, meaning we all need to book it to class, sit in hour-long lectures, find the time to do our homework and work at a job after class that, typically, does not pertain to our majors. 

We do not have time in a busy schedule to fill out forms and applications for something we may not even qualify for.

There is no clear timeline yet that states when or if this plan will be officially put to action but it allows for over 43 billion borrowers who will benefit from this by the end of the process.

Though this plan seems practically perfect, in theory, and student loan forgiveness would be the solution to many of our problems, there are reasons behind why this cannot, and most likely will not happen. 

The main reason, at hand, coming in at 53% backing is a lack of qualifying payments and weighing in next is ‘missing information’.

Imagine you fill out all of the information required to qualify, you assume that what you stated is going to get approved and then, once it is too late, you find out that this plan does not pertain to you or, almost worse, you send in paperwork only to find out months later that it was considered incomplete.

Those who strongly need this payment plan and are counting on help will have to assess what they can do next and move on because, honestly, there is not much else to do moving forward. 

Another problem with this new plan is that, those who already went to college, finally paid off their own student loans and are working every single day, making hard-earned money will have to pay for someone else while inflation, as is, continues to skyrocket.

The individuals who endured their own financial instabilities will be placed under a spotlight to assist others (who they do not even know personally) and that is money coming straight out of their pocket. We all know that prices for everything have gradually or, even overnight increased and, though it is especially hard on students pursuing a full-time education, it is difficult for everyone regardless of their position or career in society. 

In addition to the controversies faced with the new presented policy, a loan carries interest and interest increases as time progresses.

If a student applies for a loan and finds out later that they do not meet the criteria, they not only must continue down their road to undeniable debt, but they will also have new fees tacked on to the existing, which will only make it more difficult to pay off in the future.

Though the new Student Loan Forgiveness Plan enacted seems like the answer to every student’s prayers, there are severe downsides to it and a cost that might not be worth paying.

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