Student loans are one of the biggest burdens for millions of millennials across the United States. Indeed, the average millennial carries about $28,317 in debt, not including mortgages, according to Experian’s 2021 State of Credit report, which classifies millennials as those born between 1982 and 1995. When including mortgages, millennials’ total debt averages $255,527 per person. This absurd number is not without cause, considering many older millennials who were between 1981 and 1989 lived through major events affecting their adult lives and careers. Some of these events include 9/11, the dot-com bubble, the financial crisis of 2008, the great recession, and most recently, the COVID-19 pandemic. With each of these events marking yet another financial setback for millennials, it’s no surprise debt is such a major issue.
To help alleviate this issue, the Biden administration had previously said they would work to cancel student debt. This claim has seen some truth, although far from canceling everyone’s debt. Most recently, The Department of Education has said they will work on the immediate cancellation of debt for roughly 40,000 borrowers. Those receiving cancellations were part of a past mistake that denied 3.6 million borrowers’ credit toward student loan forgiveness. In addition to this cancellation, the administration has expanded loan forgiveness to those who were defrauded by for-profit colleges and or permanently disabled. What do you think about the move to help relieve student debt? And could we see this cancellation of debt expanding to more people in the future?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.