Editorial: Student loans are on hold – but we need more.

What is perceived as the “golden ticket” to a white-collar job will put the average person in debt about $39,351.

That golden ticket — a college degree — leaves 60.5% of those attending graduate school and 54.2% of undergraduates with often huge federal debts, according to EducationData.org.

And most, about 53%, of those recent graduates are unemployed or underemployed, according to a University of Washington study.

Constant discussions are raised about the excessive cost of higher education, the worrying amount people have borrowed, and people who have a degree but don’t use it.

As students, we run the risk of falling into one or more of these categories.

While it’s easy to simply suggest that our student loans be forgiven, it’s more important to note that education is simply too expensive and inaccessible for most Americans. At the same time, a college degree is necessary to earn a living wage and have desirable career outcomes in today’s economic climate.

The last week in particular has been of great importance for people who have taken out loans to pay for their studies. Millions of borrowers wait in the shadows to hear whether President Joe Biden will extend the pause on federal student loan payments that is set to expire at the end of this month. Student loan repayments have been frozen since the start of the COVID-19 pandemic.

This Wednesday, August 24, Biden announced that he would extend the repayment freeze until the end of the year and that loan forgiveness would be given to borrowers.

Borrowers who hold loans from the Department of Education and earn less than $125,000 per year are eligible for $20,000 loan forgiveness if they have received Pell Grants and $10,000 loan forgiveness $ if they have not received such subsidies.

The president pointed out that about 90% of eligible recipients — middle-class and low-income citizens — earn less than $75,000 a year, insinuating that the income cap would include the two target groups this reform hoped to reach.

The Ministry of Education has promised to announce more details providing information on applications in the coming weeks. The application process is intended to be harmless, merely proving annual income.

The loan forgiveness will be extended to borrowers over a period to avoid a spike in inflation, which is already causing many concerns among the American public.

This seems like a step in the right direction to issue a major reform of the US student loan system. It also fulfills a campaign promise from President Biden.

It can also be comforting to know that the president understands the burden of student loans and can voice the concerns expressed by many Americans.

He believes that education is considered important but over time it has become too expensive for too many people. He also thinks those who graduate may not have access to middle-class life, a once-promised college degree.

While many rejoice, there is still a long way to go to fix a broken system such as the education system and the high payments for higher education.

Most know that to find a solution to a problem, you have to go back to the source. This source is the price of education.

With so many dollar signs on a single price tag, it’s hard to reconcile the excitement of thousands of dollars in loan forgiveness when better results, such as those offered by a degree, come with such a price. high – literally.

@dthopinion

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