Almost 50 million Americans are in debt because of their student loans. These loans can take years, and even decades, to fully pay off. With many people wanting a higher education, loans are the only viable option to pay for the tuition and expenses that come along with getting a degree. 

President Joe Biden has crafted a student debt plan to help tens of millions of Americans wipe out or help lessen their debt. Many think it is a good idea, but those who oppose the bill say it will worsen inflation. Some argue that it is also unfair to people who have worked hard to pay for their education before this plan was put into effect. 

The government has attempted to relieve student debt by giving Pell Grants, but with the exponential increase in tuition costs, they haven’t been able to keep up. They went from covering up to 80 percent of the cost to only a third. With Biden’s new plan, he says they will forgive $10,000 for families earning less than $125,000 and up to $20,000 for low-income families receiving the Pell Grant. 

Although 8 million people already qualify for loan forgiveness, more borrowers will apply. The relief is implemented four to six weeks after a borrower submits their application. This will not increase federal taxes because the American Rescue Plan makes all student loan forgiveness tax-free since March 2021.