Biden's student loan forgiveness plan sparks conversation about cost of college
NEW YORK -- President Joe Biden's plan to cancel some student loan debt could be a big financial break for millions of people, but there are questions about how the government will pay for the plan.
Some say it doesn't help tackle the major problem facing colleges and universities.
"We are stronger as a society because we have made higher education more accessible," said Dr. Jonathan Koppell, president of Montclair State University.
But Koppell says the country still hasn't made higher education affordable, which is the biggest issue.
Over the years, the cost to attend college or a university has skyrocketed, and the burden to pay the tuition bill has changed.
"We used to have significantly more state investment in higher education, and we have shifted the cost of running university to students," Koppell said.
Koppell also said on our streaming channel CBS News New York that while Biden's new student loan forgiveness program won't solve the affordability issue, it still helps.
"II's a positive step," Koppel said. "It's worth investing in yourself. Higher education is a good bet to place on one's future, and return on investment is good."
On Wednesday, Biden announced he will be erasing up to $10,000 in federal student loan debt for those with annual incomes below $125,000 or couples earning less than $250,000, $20,000 for those receiving Pell Grants due to exceptional financial need.
Thursday, however, the president's press secretary struggled to answer questions from reporters about how the feds plan on paying for the program, saying the Department of Education is going to lead an effort to release the cost estimate of the program going forward.
While the plan is moving ahead, the White House still can't guarantee that all who qualify will see their balance shrink before repayments start up again next year.
Republicans are denouncing the plan as an insult to those who chose not to take on debt.
"And then there's many other people who took out loans and paid them off. So don't you feel like a sucker now that Biden is coming to do this," said Florida Gov. Ron DeSantis.
Some critics of the president's plan are concerned the new spending power for those previously in debt will drive up consumer prices even more.