Recent law school and medical school grads who will soon earn hundreds of thousands of dollars will benefit from President Biden’s student loan relief.
Even though lawyers and resident doctors frequently earn over $200,000 a year, many of them are eligible for Biden’s loan giveaway because of their initial earnings after graduation. Americans who make less than $125,000 year, or $250,000 jointly, are eligible for $10,000 in relief, while Pell Grant recipients are eligible for $20,000, according to Biden.
Biden said on Wednesday that “an entire generation is now saddled with unsustainable debt in exchange for an attempt, at least, at a college degree.” Even if you graduate, you might not be able to access the middle-class lifestyle that a college degree formerly made possible.
A research by the Committee for a Responsible Federal Budget found that the $500 billion taxpayer-funded handout won’t resolve the long-term structural problem because the total amount of student loan debt is expected to return to its current level of $1.6 trillion within five years. Additionally, it will help those who are expected to make higher salaries.
According to Rebecca Neumann, an economist at the University of Wisconsin-Milwaukee, “just abolishing a particular balance can be regarded by some as unfairly advantaging those who have gone to college at the expense of those who have not.”
Diana Furchtgott-Roth, a professor of economics at George Washington University and a former chief economist for the Department of Labor, continued, “Forgiving student loans is unfair to students who have paid off their loans; unfair to students who have chosen less expensive community college options; unfair to taxpayers whose dollars are paying off the loans and who have no college education; and it will not rescue students from substantial debt.”
According to the American Medical Association, the typical first-year resident physician salary in the United States is around $60,000. After finishing medical school, doctors start their residency.
According on the speciality, a doctor’s salary increases by roughly 3% for each year of residency, which can last anywhere from 3 to 7 years. By the time they complete their residency, doctors might make up to $75,000 annually.
However, according to the Bureau of Labor Statistics, doctors eventually make hundreds of thousands of dollars annually (BLS). For instance, the average yearly salary for oral surgeons, cardiologists, and anesthesiologists is above $318,000.
In addition, the National Association for Law Placement estimates that the average salary of a law school graduate to be over $103,000. Smaller businesses and government organisations pay between $55,000 and $85,000 for positions.
But like doctors, lawyers eventually make far more money than they did when they first started working. According to BLS data, the average lawyer makes $128,000 per year, with lawyers at large firms or corporations earning upwards of $200,000.