The Biden Administration is pushing for a student loan relief plan that could affect about 41 million borrowers.
The nation student loan debt totals nearly $1.6 trillion, with an average borrower owing more than $30,000, according to a 2020 study by Forbes.
"So over 50 percent of that is federal loans. So I mean you're talking half a trillion if they do a blanket loan forgiveness. That money's got to come from somewhere," financial advisor Jeff Nicholas said.
Included in President Biden's proposal, an immediate $10,000 forgiveness on federal loans, free tuition at public colleges if your family income is less than $125,000 and monthly payments would be lowered.
"There's been ideas kicked around that they would put a cap on what they would forgive whether its $10,000 or $50,000," Nicholas said.
More than 200 organizations nationwide have started a petition urging President Biden to cancel student loan debt in his first 100 days. Nicholas said in trying to reduce the national student debt, the burden could lie on taxpayers.
"The long-term implications should they go the route of paying off all these student loans, tax implications are going to be astronomical," he said.
While President Biden has outlined several promises in his plan, it's unclear whether he could completely wipe out student debt.
Shortly after taking office, the Biden Administration issued an eight month extension pausing federal student loan repayments. Nicholas said borrowers should take advantage of the pause.
"If you're in a financial position to continue to make those federal loan payments, I would say continue to make them," he said, "because once you have paid your, you know any interest that was owed, prior to March 2020 everything you make payment wise is going to go to the principle of that loan."
The student debt moratorium was originally supposed to run out at the end of 2020, but will now provide relief through the end of September.