In August 2022, President Biden announced a new Student Debt Relief Plan. The program includes forgiveness of up to $10,000 in federal student loans for individuals who earn less than $125,000 a year and twice as much for recipients of a need-based grant (private loans are not forgiven). The plan was controversial as many Republicans see it as a political move to boost election support for Democrats, and it could also fuel inflation. Some Democrats and others on the left were unhappy that it didn't go far enough to relieve federal student loan debt.

Recent estimates indicate that more than 44.7 million Americans currently have outstanding student loan debt, totaling just under two trillion dollars in whole across the country. 100% debt foregiveness would provide an average of $300 per month in flexibility for existing borrowers (as estimated by the medium payment in the United States).

Those who advocate in favor of 100% federal student loan forgiveness believe that canceling student loan debt is a beneficial step in promoting a healthy economy. They say that funds currently being allocated towards the repayment of student loans would likely be poured back into the economy since it would be easier for graduates to obtain mortgage loans with higher credit scores and better jobs. 

In contrast, those who oppose forgiveness programs argue that debt relief merely redistributes debt from a small group of people to everyone in the nation - including those who can least afford it or those who decided to not to go to college. They also believe that forgiving existing loans would result in an increase in the cost of education for future students, a solution that isn’t sustainable long term. 

The question for debate, should the United States forgive 100% of federal student loan debt?