Here’s why student loans should not be canceled.

Here is what you need to know.

Student loans

Should student loans be canceled? That question is on the minds of 45 million student creditors, some members of Congress, the president and other stakeholders. There are many reasons to cancel student loans. (You can read Part 1 of this two part series on student debt cancellation here: 5 Reasons to Cancel Student Loans). In order to make a more informed decision, the purpose of this series is to present some key arguments on both sides of this important issue. Some members of Congress and President Joe Biden want to cancel large-scale student loans. However, they are different how much Sorry for the student loan. Binding Congress wants $ 10,000 to cancel student loans, Senate Majority Leader Chuck Schumer (DNA) and Senate Elizabeth Warren (DMA) want to cancel $ 50,000 student loans by executive order. Binden said he did not support the cancellation of 50,000 student loans. It is important to understand the arguments that come from all sides, whether they support student loans or not.

Here are 5 reasons not to cancel student loans

1. The cancellation of student loans is well planned

Who benefits from student loan forgiveness? Opponents have always benefited rich student loan borrowers who are focused on poor student loans and do not want their student loans canceled. For example, post-graduate school debt accounts for more than 40% of all student loans. This includes medical school, dental school, business school and law school student loans. Of course, student loan borrowers at these schools can also struggle with student loans, and not all have high incomes. That said, the worry is that many high-income student loan lenders can get student loans even if they can pay off student loans. Schumer and Warren said only borrowers with less than $ 125,000 will be eligible. Opponents believe that the limit is too high and that student loans should be limited to low-income borrowers.