BusinessStudent Debt Forgiveness: How It Benefits Latino Students in the US

    Student Debt Forgiveness: How It Benefits Latino Students in the US

    Student Debt Forgiveness: How It Benefits Latino Students in the US

    The forgiveness of student loan debt granted by President Joe Biden represents an important benefit for the families of Latino students in the United States. This is what Paula Valle, manager for Latin America of WorldRemit, points out exclusively for La Opinion.

    When we say that the impact of this debt forgiveness program is beneficial for Latino families with children studying in the United States, we highlight 3 major aspects that are favored: greater economic stability for these families and development opportunities for the region; an increase in the migratory phenomenon; and finally, stability in the flow of remittances between the US and Latam, and in both directions.

    The fact that Latin American immigrants are also among the group of students whose student debt will be forgiven, generates a direct and positive impact on the financial stability of each household.

    The economy of these families improves by having a debt forgiveness of up to $10,000 dollars, per student. In turn, reducing the economic difficulties involved in studying at an American university is reflected in “more opportunities for individual development” for each beneficiary.

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    On the other hand, the forgiveness of debt for Latino students in the US increases the migratory phenomenon, since it makes it more possible. With this debt forgiveness plan, sending another child to study at an American university is “much more attainable” if a member of that family group obtains the government benefit of “erasing his debt.”

    It should be noted that “Migrants who move to the United States to study, in search of better opportunities, have greater challenges than those who already reside in the country”. Therefore, the debt forgiveness program represents an achievement for the “opportunities” that immigrant students pursue.

    Later, Regarding remittances, the United States is also a beneficiary country of money transfers from Latin Americabut with a specific objective: the payment of study expenses.

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    The cancellation of the debt represents an important relief in the daily expenses of a family that sends money to the US to pay for their children’s studies. This will translate into positive action, improvement in their quality of life, health and probably more investment in education.

    In the opposite case, when remittances go from the United States to Latin America, an international student/worker who has just had his student loan debt forgiven, will maintain or increase sending money to his family in his country of origin.

    In this sense, WorldRemit has presented studies that reflect the change in behavior that immigrants have in order to maintain their financial obligations to their families. Which highlights that without the weight of a debt the situation is much more beneficial for remittances.

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    In general, Paula Valle, as a Latin American, considers that the benefit of the Joe Biden government’s debt cancellation is a clear commitment to the future and development of migrants within the United States.

    The United States has strong numbers in welcoming immigrant and international students into higher education. In total, they represent 38% of the student body enrolled in the country’s universities. There are almost 20 million immigrant and international students.

    Regarding the criticism that this debt cancellation program has generated, the director of WorldRemit for Latam dismisses them and considers that “positive actions like this one and their socioeconomic impact for the region” should be applauded. Even if they seem like a “short-term” decision, it implies a “significant start” for those who wish to continue their studies in the United States.

    Source: La Opinion

    This post is posted by Awutar staff members. Awutar is a global multimedia website. It serves as a source of News, Business, Opinion, Analysis, Sports, Health, Fitness, Technology, Education, Travel, and More. If you want to get in touch with us write via: [email protected]


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