Joe Biden Is Cancelling Student Loan Debt! Here's Why That's A Bad Idea!

Today President Joe Biden said he considering cancelling an amount of student loan debt less than $50,000. Elected leaders like Alexandria Ocasio-Cortez and Elizabeth Warren have been strong supporters of eliminating student loans. Today I give statistics that show why the argument given by democratic lawmakers is actually ill advised, and how forgiving student loans will not only be pointless in terms of economic growth, but how it only benefits higher income earners. Furthermore, I discuss the relationship between Federal Student loans and the Affordable Care Act (ACA) a.k.a Obama Care. #Studentloans #AOC #cancelstudentloandebt #BarrackObama #ElizabethWarren #JoeBiden #Obamacare #ACA #AffordableCareAct #msnbc #foxnews #CNN

Some Statistics Covered in the video:

1) The government took over 92% of the student loan debt in 2010 while passing Obama Care. They cut the banks out as the middle man, and was able to re-allocate the savings to help subsidize Obama care.
2) The amount of undergraduate borrowing from 2010 sky rocketed.
3) At the time the government was borrowing the debt at a 2.8% and lending it out to student borrowers at and average 6.8%. A 4% markup.
4) Currently the government pays an average interest payment of 1.5% and the average federal student loan rate charged to borrowers is 3.73% for undergraduate, 5.28% for graduate, and 6.28% for post graduate student loans
5) 14.3% of the average graduate student debt is from the borrower’s undergraduate study.
6) The average graduate student debt is 141.8% higher than the average debt balance among all student borrowers.
7) 92% of Student loan debt is owned by the federal government.
8) The lowest-income 40% of households hold just under 20% of student loans and make only 10% of the payments.
9) And the 3% of adults with a professional or doctorate degree hold 20% of student loans. The median income in these households are twice as high as the overall median – $106,000 versus $47,000 in 2019.

Video Credits:
https://www.youtube.com/watch?v=upH7KcmXq0U

Informative Links:
https://www.cnbc.com/2021/03/11/student-loan-forgiveness-is-now-tax-free-is-cancellation-coming-.html

https://www.savingforcollege.com/article/who-owes-the-most-student-loan-debt

https://studentaid.gov/understand-aid/types/loans/interest-rates

https://www.brookings.edu/research/black-white-disparity-in-student-loan-debt-more-than-triples-after-graduation/

https://www.youtube.com/watch?v=4m705HMNYoA