The president’s loan forgiveness plan is controversial. Some argue that if the federal government has bailed out corporations in the past and provided trillions in pandemic relief, we should be able to afford to forgive some student loans. Others believe if you borrow money, you should pay it back, that gainful employment is the only loan-repayment program needed, and this simply transfers student-loan debt from 13 percent of Americans who have it to the 87 percent who do not.
Regardless of how you feel about it, there are facts about the proposal you should know in order to plan to pay back your own student loan debt or to plan to send loved ones to college. It’s important to first remember the proposal was not passed by Congress and signed into law. Rather, it’s an executive order that could potentially face legal challenges, and that creates some uncertainty.