Cancellation of student debt, modification of Title IX regulations
President Joe Biden’s big promises could mean changes for students if his administration follows through.
Prior to his inauguration, Biden promised to write off $ 10,000 in federal student loan debt and repeal Trump-era Title IX regulations. The proposed debt cancellation could greatly benefit students and graduates in the state of Ohio, given that the average Buckeye who graduates with student debt has taken out $ 27,000 in loans, said the president of Ohio State. Kristina M. Johnson University in her State of the University address on February 18.
However, the proposed cancellation would only apply to federal student loans and not to private loans, which are made by a bank or other lending institution, said Mark Seymour, director of loans for Gahanna, an organization based in the United States. ‘Ohio KEMBA Financial Credit Union.
“Some people have federal student loans as well as private student loans, so if we get some of that rebate it will definitely ease the burden,” Seymour said.
Biden said on a February 16 CNN Town Hall that he still supports the cancellation of $ 10,000 in student debt, but that he does not support raising that number to $ 50,000, as some progressives such as US Senators Elizabeth Warren and Bernie Sanders lawyer.
Part of Biden’s reasoning for not supporting a $ 50,000 cancellation was that he didn’t want a lot of money going to “people who went to Harvard and Yale and Penn,” referring to schools in the Ivy League whose names give students an edge over competitors for higher-paying jobs.
However, less than half a percent of federal student loan borrowers have attended an Ivy League school, according to estimates from a higher education expert. Mark Kantrowitz.
The canceled debt is expected to be part of the federal deficit, which means taxpayers would pay it down in the future, said Lucia Dunn, an economics research professor at Ohio State, who specializes in labor market and consumer debt. . She also said that some questioned how fair it was to write off some people’s debt, while others had already paid off their loans or had not gone to college.
Still, canceling student debt would benefit many young people, Dunn and Seymour said.
“They’re consumers too,” Dunn said. “They can’t buy houses, they can’t buy cars, all kinds of industries are suffering, so that’s a good thing.”
While the Biden administration has yet to take action to write off student loan debt, it does extended the break on federal student loan repayments and interest until Oct. 1, so students won’t be required to make payments on federal loans, nor will interest accrue.
Biden too promised to go back Title IX regulations implemented by the administration of former President Donald Trump, as a narrower definition of sexual harassment and limit the responsibility of schools to investigate allegations of sexual misconduct that have taken place off campus.
“Under the Obama plan, he was favored more towards the accusers,” said Joshua Hawley, director of the Ohio Center for Educational Research and professor at John Glenn College of Public Affairs. “As part of the Trump plan, they were more supportive of people charged with offenses.”
Hawley said the Biden administration’s Title IX plan would likely resemble that of former President Barack Obama.
No action has yet been taken to repeal Trump’s Title IX regulations, but it will. probably takes time because the regulations have gone through the official “regulation” process of the Department of Education.