Student loan debt still growing... even after forgiveness

So Biden forgave more student debt than any other president—$188.8 billion for 5.3 million borrowers. But student loan debt still went up during his time in office. Total debt was $1.59 trillion in 2021 and hit $1.64 trillion by the end of 2024. Some experts say the real issue is the cost of higher education itself. Thoughts?

Yeah, I saw that too. The number of people with student debt didn’t even change—it was 42 million when he got in and 42 million when he left.

Isle said:
Yeah, I saw that too. The number of people with student debt didn’t even change—it was 42 million when he got in and 42 million when he left.

Makes sense. People kept borrowing new loans, and forgiveness couldn’t keep up.

Wait, why did debt go up if so much was forgiven?

Yun said:
Wait, why did debt go up if so much was forgiven?

New borrowing outpaced repayment. More than $300 billion in new loans were taken while Biden was in office.

Ellis said:

Yun said:
Wait, why did debt go up if so much was forgiven?

New borrowing outpaced repayment. More than $300 billion in new loans were taken while Biden was in office.

Oh wow, so even with the forgiveness, people still borrowed more?

Honestly, the real problem is just how expensive college is. Some schools are charging nearly $100K a year now.

Skyler said:
Honestly, the real problem is just how expensive college is. Some schools are charging nearly $100K a year now.

Yeah, even public in-state colleges cost around $25K a year now. No wonder debt keeps piling up.

The pause on student loan payments from 2020 to 2023 didn’t help either. A lot of people weren’t paying anything for 3.5 years.

Adrian said:
The pause on student loan payments from 2020 to 2023 didn’t help either. A lot of people weren’t paying anything for 3.5 years.

True, and interest wasn’t adding up during that time either. Probably made people feel like they didn’t need to rush repayment.

Betsy Mayotte from The Institute of Student Loan Advisors said this was expected. She thinks the only real fix is solving the cost of education.

Perrin said:
Betsy Mayotte from The Institute of Student Loan Advisors said this was expected. She thinks the only real fix is solving the cost of education.

Yeah, she said we’ll keep seeing debt rise until that’s addressed. Makes sense.