Many people in New Jersey and around the United States owe thousands of dollars in student loan debt. There have been talks among politicians that have included forgiving up to $50,000 worth of this debt. Student loan forgiveness is crucial for low-income families for a couple of different reasons.
It would allow them to go off of assistance programs
The amount of student loan debt is astronomical for many low income families. Many of them took out this debt in order to try to find a decent job to give their family a better life. Unfortunately, they are often left to pay it back in huge monthly payments. This has caused many of them to need to go on assistance programs in order to keep a roof over their heads or food on the table.
They could attain more affordable housing
Low-income families often struggle to find affordable housing. Many of them would like to own a home, but student loans are the one thing that’s holding them back. These loans might bring down their credit score, make them have a high debt-to-income ratio or keep them from being able to save for a down payment to buy a home.
While almost everyone will benefit from having all or some of their student loan debt forgiven, low-income families will benefit the most from it. By not having to make payments to pay back these loans every single month, they will have a better chance at being able to support their families and live comfortably without having to worry about how they are going to be able to pay back all of this debt.