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Meet 27-year-old Paul. He’s dedicated his life to the pursuit of pleasure. Trouble is his finances can’t keep up. Despite earning £1800 a month, his debt has reached a hair-raising £36,000. Paul works as an event and music promoter, but for him, every day is a big event. His dream is to run his own company catering to the jet-set. In reality, he’s heading for skid row.

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As the amount of student debt in the U.S. climbs to over $1.7 trillion, students each year are plunged into debilitating debt. President Biden campaigned on a promise of cancelling $10,000 in student debt for every single borrower, but so far his administration hasn’t moved to do so. Economists and activists say, even if he does cancel a portion of student debt, more must be done to prevent student loans from ballooning again in the future.

Student debt in the U.S. has ballooned to over $1.7 trillion since Congress first allowed college students to borrow from the government in 1958. This debt has varying effects on students, workers and the larger economy.

“We see the student debt crisis when it comes to individual student loan borrowers. We see how student loan borrowers struggle to save for retirement, to have emergency savings, to buy houses, to start small businesses,” Student Borrower Protection Center former executive director Seth Frotman told CNBC.

In the last few years, though, activists from both sides of the aisle have called for the president to do something about student debt. Many have even pushed for outright cancellation.

“It is abundantly clear that under a statute called the Higher Education Act, the president of the United States has the legal authority to cancel federally owned student debt,” said Rep. Mondaire Jones, D- N.Y.

Some argue that debt cancelation isn’t the answer and would mostly benefit wealthier borrowers who don’t have a problem paying off their loans on time.

“If I were to say to you, would you borrow one hundred thousand dollars to go to Harvard Law School, you wouldn’t blink and say yes, that’s clearly a good deal,” Wellesley College economics professor Phil Levine said. “We shouldn’t be absolving those people off their debt. They made an enormous investment that’s going to pay off, really, a lot.”

President Joe Biden has been largely silent about a plan to broadly cancel student debt since taking office, even though he campaigned on canceling up to $10,000 in student debt for all borrowers. However, his administration has absolved some student debt for certain groups like borrowers with disabilities and active duty service members.

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How Soon Could Pres. Biden Cancel Student Debt?

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Senate Republicans blocked a bill to keep the U.S. government open and also prevent a federal debt default, but the Senate could bring the funding measure up for another vote later this week without a debt-ceiling extension, which isn’t needed until mid-October. Congressional Democrats are also hoping to pass at least part of President Biden’s domestic agenda, which contains more than $4 trillion in spending over two bills. CBS News’ Laura Podesta reports on the developments in Washington, and CBS News congressional reporter Zak Hudak joined “CBSN AM” to discuss.

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Sep.21 — China Evergrande Group is one step closer to default after a missed interest payment due on Monday. Bloomberg Economics says a systemic meltdown is unlikely. Bloomberg’s John Liu reports on “Bloomberg Daybreak: Asia.”