Biden's Student Loan Reforms: Forgiveness and Repayment Options

President Biden has implemented two major reforms to address student loan debt. First, he has forgiven up to $10,000 of student debt for individuals earning under $125,000 per year. Second, he has reduced the repayment burden by allowing borrowers to pay only 5% of their discretionary income towards their loans, with no interest accruing. These reforms aim to provide relief for borrowers and reduce the toxic debt that often burdens individuals who drop out of college or struggle to find employment. However, concerns are raised about the long-term consequences, such as colleges potentially using the easier repayment terms to justify higher tuition costs and the lack of systemic reforms to address the underlying issues in the student loan market.