Why Is Student Loan Forgiveness Happening Now?

The video discusses President Biden's commitment to student debt relief, aiming to cancel $10,000 to $20,000 in student loans for eligible Americans. It highlights opposition from Republican leaders who argue that the plan benefits only a few and could exacerbate inflation. The intent is to support the middle class and those financially struggling post-pandemic. The history of student loans is explored, noting rising tuition costs and economic impacts. Economists express concerns about inflation, while legal challenges create uncertainty about the plan's future.

What is the primary goal of President Biden's student debt relief plan?

• To reduce government spending

• To support the wealthy

• To assist middle-class and financially struggling individuals

• To increase college enrollment

What historical event led to adults returning to school and gaining new skills, impacting student loan debt?

• The 2008 Great Recession

• The 2001 Dot-com Bubble

• The 2020 COVID-19 pandemic

• The 2016 Presidential Election

What was one consequence of the federal government's cuts to Higher Education Funding?

• Increase in private student loan companies

• Decrease in college tuition fees

• Colleges raising tuition to compensate for lost revenue

• More scholarships available for students

What concern do some economists have about the impact of student debt relief on the economy?

• It will only help a small fraction of Americans

• It will cause a recession

• It will significantly boost inflation

• It will lead to a decrease in consumer spending

What legal challenges are associated with President Biden's student relief plan?

• Opposition from Democratic leaders

• Support from all states

• Lawsuits from borrowers

• Legal threats from Republicans