There’s been a lot of talk about student loans and loan forgiveness over the last several years. These conversations have grown louder ever since loan payments were suspended due to the outbreak of COVID-19 and rising inflation. The 43 million Americans with student loan debts carry over $37,000 on average. Student loan forgiveness is clearly an issue that affects many citizens from all walks of life, but the ramifications of loan forgiveness could also have a lasting impact on our military.
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Will Biden Forgive Student Loans?
Yes, President Biden announced student loan relief for borrowers who need it most, which will provide up to $20,000 in student loan forgiveness for those who qualify.
The measures being used include renewed student loan measurements, reform of the Public Service Loan Forgiveness (PSLF) program, holding schools accountable for price hiking, and more.
In addition to measures aimed at reducing student loan debt, loan payments have been paused for the final time for those eligible through December 31, 2022. Payments will resume in 2023 beginning on January 1.
In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023.
I’ll have more details this afternoon. pic.twitter.com/kuZNqoMe4I
— President Biden (@POTUS) August 24, 2022
There’s a time and place for navigating the political complexities that this will bring on. Many legal avenues may present themselves through actions taken by bodies such as the U.S. Supreme Court, but student loan forgiveness is now a focal point for the Biden administration.
Will the Student Loan Forgiveness Program Affect Military Recruitment?
While there was always going to be a mix of opinions and pushback, this sets the stage for a path of loan forgiveness on student loans. It’s a welcomed sight by millions that may have ripple effects on another problem facing America: military recruitment.
If it was a secret, it was more open than Cooper Kupp on 2nd and short. The U.S. military uses college reimbursement as a point of emphasis in its marketing and as a means of recruitment.
In addition to Pell Grants and work-study programs, there are many different financial incentives available to those who serve in the American Armed Forces:
- Loan Repayment Program (LRP).
- Military Tuition Assistance.
- Reserve Officers’ Training Corps (ROTC) Programs.
- Service Academies.
- The Montgomery GI Bill Active Duty (MGIB-AD).
- The Montgomery GI Bill Selected Reserve (MGIB-SR).
- The Post-9/11 GI Bill.
- Tuition Assistance Top-Up Program.
This mixture of benefits, programs, and educational options are all viable options for those who are serving in the U.S. military while pursuing their education. Often, these benefits are a key selling point to young recruits leaving high school and entering adulthood.
The student loan forgiveness from Biden and his administration comes as the U.S. military is facing the biggest recruiting shortfall in decades. Many military leaders and politicians have expressed concerns about the lack of progress being made to reach the recruitment goals set for the end of this decade.
Student loan forgiveness undermines one of our military’s greatest recruitment tools at a time of dangerously low enlistments.
— Jim Banks (@RepJimBanks) August 25, 2022
Student loan forgiveness comes at a time when the U.S. Army is increasing its enlistment bonuses from $40,000 to $50,000. It’s clear that the measures in place for Biden’s student loan forgiveness initiative will help millions of Americans but hinder recruitment efforts by the Armed Forces.
Polarized Opinions Lead to Mixed Reviews
One of the best things about this country is that everyone gets to have an opinion and express it. The downside to this is that you get to hear everyone’s opinion while they express it.
Many people are welcoming the student loan forgiveness program, as it provides an avenue to pay off what are seen as predatory loans with virtually insurmountable interest rates.
Others oppose the idea, believing it’s a cop-out and could help fuel inflation during one of the worst inflationary hikes seen in the history of the United States.
From a military standpoint, there are also Americans who see the military receiving benefits and free college education as individuals that have earned it, whereas those benefiting from the new measures are seen as having the money handed to them.
A common misconception is that student loans use compound interest, which is not the case for most with debt. Student loans may mostly use simple interest; however, these rates continue to rise each year, leaving many with loan amounts that cost the same if not more than when they first signed.
Regardless of your stance, student loan forgiveness is a reform that will affect the lives of millions, our educational system, national security, and many other aspects of the American public.
How To Apply for Student Loan Forgiveness
For individuals with federal student loan debt making under $125,000 per year and married couples or heads of households making less than $250,000 per year, the U.S. Department of Education will cancel up to $10,000 in debt. An additional $10,000 in relief is available to those who received Pell Grants while attending college.
If the U.S. Department of Education has your income information, there’s nothing more for you to do. Your student loan forgiveness will automatically be applied. If your income information is not available, you’ll need to submit a new form.
Applicants can begin submitting their forms in early October. It will take around four to six weeks before any relief will be applied. You’ll need to submit your application by November 15, 2022, to avoid missing out and any delays in processing.
Before it’s live, applicants can go to the U.S. Department of Education’s subscriptions page for updates. Simply sign up using the first checkbox under the various education topics available to receive “Federal Student Loan Borrower Updates.”
Where we go from here is still a bit of a mystery, but for millions, this could be a huge step towards a more balanced financial outlook. The military will have to also adjust as we continue to watch the ramifications that come from student loan forgiveness.
Related read: Military Recruitment Marketing: Using Video Games to Recruit Troops