Student loan forgiveness debt ceiling refers to the hypothetical situation in which the total amount of outstanding federal student loan debt reaches or exceeds the federal debt ceiling. The federal debt ceiling is a legal limit on the amount of debt that the U.S. government can borrow. If the debt ceiling is reached, the government would be unable to borrow any more money to pay its obligations, including student loans.
Student loan forgiveness is a highly controversial topic. Proponents argue that it would provide much-needed relief to borrowers who are struggling to repay their loans. Opponents argue that it would be unfair to taxpayers who have already repaid their loans or who have chosen not to attend college. The potential impact of student loan forgiveness on the federal debt ceiling is just one of the many factors that will need to be considered when making a decision about whether or not to implement this policy.