NEW Fox News articles can now be heard on audio! On Wednesday, President Biden unveiled a plan to essentially use government funds to pay down up to $10,000 of school debt for each borrower earning less than $125,000 annually.
If Biden follows through on the rumored plan and extends a repayment hold until next year, Americans might be on the hook for roughly $300 billion.
Federal student debt in the US has risen steadily for years and currently exceeds $1.6 trillion. According to the most recent federal figures, more than 43 million Americans have federal student debt, with roughly a third owing less than $10,000 and more than half owing less than $20,000.
The Congressional Budget Office predicted in late July that The U.S. federal debt would roughly quadruple the size of the economy by 2051, reducing economic growth and increasing the possibility of a fiscal catastrophe, according to FOX Business.
On Wednesday, Joe Biden is anticipated to announce a $10,000 student loan forgiveness program: REPORT
As a matter of personal responsibility, many hardworking, law-abiding Americans have diligently paid off their college loans. Many others told Fox News Digital that they felt doing so was and still is the proper thing to do since they believe in fulfilling their commitments.
Bruce Paulson of North Carolina said this week, “I am generally wary of what the government does, and I would be quite skeptical of the government canceling all or part of a student debt.”
They would also be breaching contracts, which is bad, he continued, if they did that.
Paulson, 42, a digital marketing expert and the founder of his own business, worked hard for over 20 years to settle his nearly $28,000 in school loan debt.
NC MAN PAYS OFF THE WHOLE $28,000 STUDENT LOAN; HE IS SO HAPPY.
He added of the accomplishment, of which he is still proud, that it took him 19 years to pay it off in full.
Even though that’s a considerable amount of time, he claimed that “it would have taken considerably longer if I hadn’t made the extra payments toward the principal those first few years.”
For any loan forgiveness, “I’d make careful to read the fine print to completely grasp all penalties, repercussions, and taxes that may be required.”
Before it was officially announced, Paulson commented on Biden’s idea to subsidize student loans by saying, “Who loaned the money to these students? Will the government compensate and make whole those organizations? Or do they lose out?
“I find government giveaways exceedingly dubious, and they frequently come with unexpected shackles,” he continued.
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In addition, Paulson advised “reading the fine print on any loan forgiveness to fully comprehend all penalties, repercussions, and taxes that may be due in the future.”
Paulson stated that he is skeptical of government participation in or support of education. The federal government lacks any knowledge in this field.
If one were to accept the government’s offer of loan forgiveness, he added, “it would deprive that “person” of an essential and priceless lesson about the dangers of incurring debt .”
“How much of a mistake will it be for people to take on debt in the future to buy a house or some other expensive thing if they don’t learn the risks of doing so the first time they make that mistake?”
In general, I’d be dubious about the government wiping out all or portion of anyone’s student loan debt.
Basically, he said, “I’d be suspicious when it comes to the government canceling all or portion of anyone’s student loans.
Paulson earned his degree in 2002 from Appalachian State University in North Carolina’s Blue Ridge Mountains. He currently operates Determined Solutions (determinedsolutions.com), a search engine optimization company he started in 2015.
He previously said of his student loans, “Going to college and getting student loans was the biggest financial mistake I’ve ever done.”
But because I committed the error when I was young, I recognized that it was my fault and that it was up to me to make amends.
And, he continued, “it really helped me throughout my life.” It’s been nice for me to accept responsibility for my mistake and finally make restitution.
Parents of two from Ohio receive a significant student loan debt.
In an interview with Fox News Digital this week, Ohioan Josiah Poletta, a teacher, husband, and father of two, said, “My perspective is that partial student loan forgiveness might be a potentially helpful approach for the status of the economy but only if done appropriately.”
He continued, “Prior to forgiving principal, the administration should concentrate on forgiving accrued interest.”
“Interest is money gained by the government, whereas principal is the amount that was agreed to be borrowed and paid back,” he continued. Government should not benefit financially at the expense of its people.
“It is my opinion that forgiven interest payments are not a transfer of debt to the American citizens but forgiven principal could be seen as such,” Poletta continued.