Need That Money

Student Loan Debt: The Never-Ending Crisis and Possible Solutions

Student loan debt has been an ongoing concern for many Americans, and it has garnered increased attention in recent years. With the commencement of the new academic year, many students and their families are wondering about the current state of student loan debt, as well as the possibility of loan forgiveness.

This article aims to provide an informative overview of the topic, covering the latest developments, trending predictions, and the advantages of student loan debt forgiveness.

Current State of Student Loan Debt

In the wake of the pandemic, the U.S Department of Education put in place the CARES Act, which allowed students’ federal student loan repayments to be paused, and suspended collections and interest. This was welcomed news, as it provided much-needed financial relief for many families who had been struggling with their finances.

However, it was announced in August 2021 that the pause on payments, collections, and interest would cease at the end of January 2022. This means that borrowers will need to begin repaying their loans and interest will start to accrue again.

Predictions of Possible Extension

There are predictions that the Biden Administration may extend the payment pause and offer additional relief to borrowers dealing with the financial aftermath of the pandemic. However, as of now, there has been no official confirmation of an extension.

Some advocates argue that the extension is necessary to allow borrowers to recover from the pandemic’s effects fully. In contrast, others argue that the extension would only delay the inevitable repayment process, which would put individual borrowers’ financial welfare at greater risk.

Will Student Loan Debt Be Forgiven? There are differing viewpoints on whether student loan debt will be forgiven or not.

While some people believe that loan forgiveness is essential, others argue that it is unnecessary and unfair to taxpayers. Advocates of student loan forgiveness argue that it would benefit not only individual borrowers but also the overall economy.

When borrowers’ debt is canceled, a significant amount of money is freed up, which can be directed into more productive investments such as family, home, and retirement. Proponents argue that debt forgiveness would stimulate the economy and boost productivity.

Advantages of Forgiving Student Loan Debt

One of the main benefits of forgiving student loan debt is that it would allow borrowers to achieve their long-term financial goals. Many individuals who are struggling to pay off their student loans are unable to contribute to their 401(k) plans, save for a down payment on a home, or start a family due to financial constraints.

Forgiving student loan debt would allow these borrowers to redirect their finances towards these essential, long-term financial goals. Forgiveness of student loan debt can also reduce the wealth gap between people of different socioeconomic backgrounds.

Borrowing from the government has, historically, been more common among minorities and low-income students. Therefore, forgiving these debts would help level the playing field and help bridge disparities and injustices that persist due to inequality of access to resources.


The current state of student loan debt is challenging, and it requires careful consideration due to the pandemic’s economic fallout. The decision to extend the payment pause is still up for debate.

While loan forgiveness is a hotly contested topic in political circles, it remains popular with many American citizens. Providing full or partial forgiveness may provide a pathway for individuals to achieve their long-term financial goals, reduce the wealth gap, bridge disparities, and offer significant benefits to the overall economy.

The solution to the student loan debt problem is complicated, but it is necessary to continue examining and debating its impact, cost, and advantages. Amid the ongoing pandemic, student loan debt has been a matter of great concern for borrowers, their families, and the government at large.

From the payment pause extension to widespread student loan forgiveness, a lot has been debated and discussed. This article aims to explore some critical considerations related to whether there will be another student loan payment pause extension and discuss the effectiveness of widespread student loan forgiveness.

Will There Be Another Student Loan Payment Pause Extension? The Department of Education had announced that the payment pause on federal student loans would end on January 31, 2022.

However, given the continued challenges associated with the pandemic, there has been much speculation about whether the payment pause extension will continue beyond that date. The good news for borrowers is that there have been signs pointing towards an extension until at least the end of the year.

One sign that the payment pause extension may extend is that several borrowers have reported not receiving repayment notifications from their loan servicers, which typically provide information on the repayment schedule and due date. This could indicate that the servicers are preparing for the possibility of a payment pause extension.

Additionally, Ryan Law Consulting, LLC, an organization that helps borrowers with their student loans, has also suggested that borrowers anticipate an extension of the payment pause. While there is no official announcement yet about the extension, these signs suggest that another extension may be on the horizon.

This could provide much-needed financial relief to borrowers who are still struggling to make repayments.

Widespread Student Loan Forgiveness

Student loan forgiveness has become a popular topic of debate, with some advocating for widespread loan forgiveness, while others are skeptical about its effectiveness. The question of whether widespread student loan forgiveness is a good idea is complicated and requires a thorough understanding of the factors that contribute to the student loan debt crisis.

While forgiving student loan debt may provide immediate relief to borrowers, it does not solve the root cause of the problem. One of the primary reasons for the massive amount of student debt is that college costs have been steadily increasing over the years.

Forgiving the debt does not address why college costs, including tuition, housing, and supplies, continue to rise. In this light, widespread student loan forgiveness could be seen as a band-aid solution rather than a long-term fix to the student debt crisis.

Without addressing the root cause of the high cost of college, loan forgiveness may not provide a sustainable solution. Moreover, widespread student loan forgiveness may not be a financially feasible solution.

The cost of forgiving student loan debt could run into trillions of dollars, which would have to be funded by taxpayers. This may not be a practical or equitable solution as the burden would fall on all taxpayers, including those who did not take out loans.

Instead, a better solution could be to eliminate origination fees and lower interest rates. Origination fees, which are charged at the time of loan disbursement, can be an added and unnecessary financial burden on borrowers.

Lowering interest rates would also help make student loans more affordable and easier for borrowers to repay. Overall, these solutions, coupled with efforts to reduce college costs, could provide a more sustainable solution to address the student loan debt crisis.


As the pandemic continues to impact American life, it is crucial for us as a society to consider how best to help those who are struggling with student loan debt. While another payment pause extension could offer immediate financial relief to borrowers, it is still up in the air.

Forgiving student loan debt widely may not be the best approach, as it only provides temporary relief without addressing the root cause of the problem. Offering better loan terms, eliminating origination fees, and reducing college costs, however, could prove to be more sustainable fixes.

Ultimately, it is important to consider all options to provide financial support to those grappling with student loan debt. This article has explored some of the current issues surrounding student loan debt, including the possibility of another payment pause extension and the feasibility of widespread student loan forgiveness.

While there are signs that a payment pause extension may be on the horizon, student loan forgiveness may not offer a sustainable solution to address the root cause of the country’s student debt crisis. Instead, better loan terms, the elimination of origination fees, and a reduction in college costs may provide a more feasible long-term solution.

As student loan debt carries immense financial implications, it’s essential to keep these solutions in mind and continue to navigate a way forward that represents the best interests of all involved.

Popular Posts