Student loans should not be canceled for members of Congress, some critics say.
Here is what you need to know.
Representative Rashida Tlaib (D-MI) delivered a passionate speech speech upstairs in the House on the importance of large-scale student loan cancellation. Like other progressives in Congress, including Senate Majority Leader Chuck Schumer (D-NY) and Senator Elizabeth Warren (D-MA), Tlaib called on President Joe Biden to cancel up to $ 50,000 in student loans for student borrowers. (Biden will not cancel student loans until student loan relief ends). Tlaib shared his own personal struggles with student loan debt while trying to get an education to live the American Dream. “I worked full time, Monday through Friday,” Tlaib said, “and took weekend classes to get my law degree. And again, nearly $ 200,000 in debt. And I still owe over $ 70,000, and most of it was interest. Despite her history of balancing work and school only to end up with significant student loan debt, social media critics were quick to attack the MP over her high salary, which they say should disqualify her from any student loan forgiveness.
Student loan cancellation: reactions on social media are not positive
As a member of the United States Congress, Tlaib earns $ 174,000 per year. This didn’t appeal to some on social media, who hinted that student loan cancellation shouldn’t benefit borrowers earning $ 174,000 a year. While Tlaib did not explicitly say that her own student loans should be canceled, she hinted that a large-scale student loan forgiveness could help borrowers with student loans who are in a similar situation to hers. . On Twitter, for example, Tlaib faced a backlash from several Twitter users who criticized his comments, his salary stance on the student loan cancellation. While some Twitter users supported his arguments for a large-scale student loan cancellation, others were not so kind:
“I worked three jobs and graduated debt free !! I ate grilled cheese and drank kool-aid and wore old clothes! We do not give to get into debt to study. You have to make the right choices and sacrifice things! – Jennifer smith
“My opinion – Nobody cares – if you took out the loan, you have to pay it back.” If you made a bad decision (not satisfied with [Return on Investment]), not my problem, not a government problem. You are making a lot of money in Washington – stop complaining. – BB
“We just had a full year of ZERO interest and no default payment penalties. On top of that, the government just gave us a bunch of money. It was an incredible opportunity that I took advantage of. I made my last student loan repayment yesterday. Stop whining and pay it back. – Chris Ford
Student loans: why this MP wouldn’t be eligible for a student loan forgiveness
When discussing student loan cancellation, most borrowers refer to large-scale student loan forgiveness as benefiting all student loan borrowers. However, Tlaib would not even qualify for a full-scale student loan forgiveness under Congress’ main proposal. (Student loan cancellation won’t be available to everyone, but this plan is available now). Under this proposal, which was championed by Schumer and Warren, only federal student loan borrowers with annual income up to $ 125,000 would be eligible for a student loan forgiveness of up to $ 50,000. (Here’s who qualifies for the student loan waiver right now). Given his salary, Tlaib would not be eligible for a full-scale student loan forgiveness if Congress passed Schumer and Warren’s plan. In practice, Congress does not intend to pass a large-scale student loan cancellation. If Congress were to consider the large-scale cancellation of student loans, it is likely that the income threshold would be reduced. It would be a tough sell to Congress to let student loan borrowers earning six-figure salaries get their student loans canceled, while other Americans affected by the Covid-19 pandemic had an income cap of $ 75,000. (How to qualify for the automatic student loan exemption).
A public service loan discount is possible
Although a large-scale student loan forgiveness is not possible for Tlaib under the main proposal, Tlaib may be eligible for a public service loan forgiveness. The Public Service Loan Forgiveness Program is a federal program created by Congress in 2007 to help student borrowers achieve full federal student loan forgiveness if they are working full-time for a qualified public service or non-profit employer. . Tlaib said she works for Legal Aid and is also a member of Congress. If Tlaib makes 120 monthly student loan payments along with other requirements, she may be eligible for a student loan forgiveness. The US Department of Education last month announced major changes to student loan cancellation to help more borrowers get relief on their student loans, including $ 2 billion in student loans that will be canceled in a few weeks. This could help Tlaib count all past student loan payments that were previously excluded under the old program rules. To qualify, Tlaib may complete a limited waiver for student loan forgiveness by October 31, 2022 (How to request a limited student loan forgiveness).
Student loans: next steps
Tlaib’s arguments about the high cost of education are almost universally shared. College is expensive. Law school is expensive. The quarrel, however, is whether the person who graduates should pay these costs through their own personal sacrifice, or whether other Americans who have already paid off student loans or who did not go to college should be subsidizing. your studies. Biden is unlikely to enact a full-scale student loan cancellation, and don’t expect Biden to cancel student loans until the end of student loan relief on January 31, 2022. This is why he is. essential that you develop a student loan repayment game plan. Start now to be ready by February 1, 2022, when federal student loan payments will begin again. Here are some popular ways to pay off student loans: