Financial Aid 101 teaches that student loans are not “free money”. You have to pay it back. But the rules might be rewritten if a coalition of Democratic Attorneys General can persuade President Biden to sign off on forgiving the $1.7 trillion debt. The coalition, which includes Michigan’s Attorney General Dana Nessel, described the burden of student debt as “unmanageable”.
The coalition argues that the debt needs to be fully forgiven for every borrower because the repayment system is “systemically flawed”. The unilateral cancellation of student debt would “reduce stress and mental fatigue”, according to the letter, and enable borrowers with forgiven loans to save for retirement and purchase new homes.
Michigan Attorney General Dana Nessel said, “Hardships created by the pandemic – and the subsequent hold on loan payments – prove we are equipped to cancel student debt once and for all.”
The status of repayment for future borrowers is not addressed in the request, nor is there a plan to reform the student loan system that is characterized as “systemically flawed”.
Reporting for WGRT – Jennie McClelland
