Despite the political backlash and uncertainty for the macroeconomy brought upon by their plan, the Biden Administration remains steadfast in its argument that it is a vital step for Americans in the ultimate goal of solving the student debt crisis. Moreover, they believe it to be an efficient and sustainable solution — they maintain that because of the high default rates for student loans, the actual cost of the debt forgiveness plan will be lower than the theoretical expectation; however, the specifics of that value have proven to be difficult to calculate.
Downward trends in enrollment have had a ripple effect at institutions across the country. As decreases in enrollment continue, schools are feeling pressure to keep tuition affordable. Although inflation has pushed up the prices of most goods and services, the necessity for more students has incentivized institutions to keep tuition prices relatively low.