a report on the racial wealth gap and one of the recommendations was to forgive student loan debt. We estimated that it would cost $350 billion and that it would have a significant impact on closing the racial wealth gap.
Next Tuesday, the Supreme Court will hear oral arguments to determine whether President Biden’s student loan forgiveness plan is constitutional. The plan, announced in August of 2020, would cancel up to $20,000 of debt for borrowers whose income is low enough to receive a Pell grant while in college and up to $10,000 for those who did not. Three experts weigh in on the debate and what the ruling could mean for college cost and student debt in the next five years.
Sandy Baum from the Urban Institute suggests that the case is about more than just the millions of borrowers who were promised debt forgiveness. It is about whether the president has the authority to spend such a large sum of money without Congress. Michael Brickman from the American Enterprise Institute notes that a ruling in favor of the loan forgiveness plan would give colleges and universities the green light to charge whatever they want. Brian Kennedy II from the Joint Center for Political and Economic Studies believes that if the plan is upheld, borrowers will be able to afford basic necessities and save for college and retirement. However, if the Supreme Court overturns the plan, taxpayers may be responsible for footing the bill.
The outcome of the case will have a huge impact on the future of college cost and student debt. Millions of borrowers are counting on the debt forgiveness plan, and the nation is waiting to see what the Supreme Court will decide.
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