President Biden’s Gift of a Loan Relief Package, to Students
Millions of students in the U.S. are in debt. They have taken out student loans to complete their education. The group includes both, former students, and current ones. The loans are of diverse types.
Naturally, the borrowers are bound to be beset by worries regarding repayment. However, President Biden has decided to come to their rescue. His student loan relief package is all set to wipe out debts to the tune of $10,000-$20,000!
Biden’s Student Loan Forgiveness Package
A rough estimate reveals that around 43 million students are surviving on loans. They are struggling to repay their loans. After all, there are not too many jobs going around, especially in the ongoing pandemic scenario. Therefore, both, students, and observers, are waiting to acquire greater clarity regarding this loan relief plan.
Thus far, this is the substance of the plan, according to the Joe Biden administration. Suppose, a student has received a Pell Grant for completing his/her college education. Then, he/she becomes eligible for a debt reduction worth $20,000.
In case, the student did not receive a Pell grant, the debt reduction would be worth $10,000. At the same time, there is a specific condition in place, too. The student loan forgiveness package is applicable only to students, who are earning less than $1,25,000.
Opinions Regarding the Loan Forgiveness Plan
Mortgages in the U.S. are an example of the nation’s largest consumer debt. Student loans are second in rank. Now, Joe Biden is a democrat. Therefore, the opposing Republicans are challenging the President’s move. They believe that it is not going to work! In contrast, the White House believes that the President’s plan will ensure debt cancellation for at least 20 million students.
Some American states are keen to launch a tax on the student loan forgiveness plan. However, whether this taxation will really go through or not, remains to be seen.
The worst part is that scammers are already going into action! They are ringing up borrowers, randomly. They are urging them to pay for having their respective loans cancelled. The scammers hope to benefit immensely, with around $1.7 trillion involved in student loans!
Bitcoin Could be a Great Alternative to the Forgiveness Plan
The President’s announcement has encouraged cryptocurrency fans to offer an alternative solution. They believe that Bitcoin should be brought into the picture, to take charge of both, lending and borrowing. They could be offering this recommendation after observing Bitcoin’s upswings and downswings on the investment and trading platform, Visit Site.
Dennis Porter is the Co-Founder and CEO of the Satoshi Act Fund. He recently expressed his opinion on Twitter. According to him, it would be better to give each person, who has not received a Pell grant, $10,000 in Bitcoin. These coins may remain locked up, via a Smart Contract, for 10 years. The Contract should enable the paying off the balance amount of a student’s debt, soon after its release. However, his tweet resulted in for, and against, arguments, with no consensus being reached.
The Founder and CEO of HelperWorld, Ashwani Kumar begs to differ. He notes that when a student loan is accompanied by a fixed interest rate, the return becomes clear. This is a positive point, which encourages students to opt for cash loans. In contrast, digital currencies tend to be fickle, offering no guarantees of profits. There could be total or partial losses, at times.
To illustrate, suppose the student leaves college, with a loan of $37,000 in tow. Suppose the fixed interest rate is 6.8%. The student could opt to repay the amount within 5 years, instead of 10. This way, the total interest would reduce, from $14,096, to $6,749. The concerned student may calculate the repayment amount in cash, and savings, too, at the time of taking the loan, itself.
The CEO and Director of Tarality, Abhijit Shukla, believes that colleges/universities must be ready to accept tuition fees in the form of Bitcoin. Similarly, the U.S. Government should be ready to accept Bitcoin as apt payback for student loans. Only then, can Bitcoin assist in lessening the deficit in existence. Otherwise, by itself, Bitcoin cannot resolve the crisis of student debt. After all, students do not possess sufficient disposable personal income, for investing in cryptocurrencies.Follow us on social media