"President Biden has hinted that he is considering relieving at least some of the $1.7 trillion in debt owed to the federal government by more than 40 million student loan borrowers. However, with the final proposal still up in the air, the feasibility of that approach has been questioned by both Department of Education officials and higher education experts," Inside Higher Ed reports.
..."Many higher education officials said although forgiveness would provide temporary relief to borrowers, broad reforms are needed to simplify student loan programs and fix administrative issues to increase transparency between borrowers, the Education Department and loan servicers.
'Absent from the conversation is anything to do with how we are going to reform the system so we’re not back in this exact same position in one year, five years or 10 years,' said Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators. 'Forgiveness without student loan reform would be a pretty big mistake.'
'I think that sort of targeted relief is needed sooner rather than later, but if we’re looking at across-the-board debt forgiveness, to do so without putting forward a comprehensive set of solutions on student loan reform strikes me as politically expedient but pound-foolish,' he continued."
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Publication Date: 5/19/2022