AMAC Exclusive – By Shane Harris
With the midterms just over three months away, Democrats are ramping up the pressure on President Joe Biden to implement mass student loan forgiveness in a ploy to energize the party’s base for the midterms. But even as the Department of Education says it’s prepared to cancel all student loans at a moment’s notice, there are growing signs that mass student debt cancellation – in addition to being a dangerously irresponsible fiscal policy – may not be the political winning issue Democrats think it is.
According to reporting from Politico earlier this week, “top Education Department officials have developed detailed plans to carry out student loan forgiveness for millions of Americans as they wait on President Joe Biden to make a final decision” – a decision that some Democratic insiders believe could be coming in a matter of days. After promising on the campaign trail to forgive at least $10,000 in student loan debt per borrower, Biden has thus far opted to only extend the pause on loan payments that began as a pandemic relief measure in March of 2020. This strategy has frustrated many Democrat officials and voters, who had hoped that Biden would make loan forgiveness a priority immediately upon entering office.
One major reason for the delay appears to be internal debate among Democrats, and even some senior officials within the White House, about what Biden’s student loan forgiveness program should look like. While Biden promised $10,000 per borrower when he ran for president two years ago, some far-left congressional Democrats like Senator Bernie Sanders of Vermont have called on Biden to cancel all $1.8 trillion of student debt held by the federal government. The administration is also reportedly weighing whether or not to place an income cap on who would be eligible for debt cancellation, with one internal Department of Education memo proposing a threshold of $125,000 for individuals and $250,000 for families.
Regardless, Biden’s decision on student loans will have to come in the next few weeks, as the current pause on loan payments expires August 31. Biden could extend the pause again through Election Day, but doing so would miss what many Democratic strategists believe to be a key opportunity to boost their prospects this November. Specifically, Democrats hope that student loan forgiveness will inspire turnout among voters under 45 – a cohort of Americans that collectively holds more than 54% of all student loan debt and voted for Biden 56%-42% percent in 2020, but has soured on him since.
But even if Biden does cancel some or all student loan debt, there is reason to question how much goodwill it will actually earn Democrats with voters. The vast majority of student loan debt is held by higher-income households, meaning that student loan forgiveness is in effect a government welfare plan aimed squarely at the comparatively wealthy – even as poorer Americans suffer more as a result of inflation. A family struggling to afford gas and groceries on the median U.S. household income of $67,000 would be justified in being enraged at the fact that a household bringing in $250,000 receives tens of thousands of dollars in loan forgiveness from the federal government while they receive nothing. For every hypothetical voter that Democrats gain from Biden canceling their student loans, it is not unreasonable to think they might lose one (or more) voters who are resentful of the policy. (If Republicans aggressively prosecute the case, that is.)
Economists have also raised concerns that mass student debt cancellation would likely exacerbate already sky-high inflation rates and could lead to more economic turmoil as the country enters a recession. Even forgiving just $10,000 per borrower would cost some $230 billion – an alarming prospect for a country already suffering from the effects off too much government spending. As Ed Mills, an analyst with Raymond James investment bank, told CBS News, “If you had to put it [student loan forgiveness] in one bucket or another, it’s more in the bucket of contributing versus not contributing to inflation.”
As many conservatives have pointed out, “debt cancellation” is in itself a misleading term; from a financial standpoint, the debt would not be truly “cancelled,” only transferred. The burden of student loan debt would be assumed by the U.S. government, and by extension American taxpayers – many of whom did not go to college precisely to avoid having to pay back student loans.
Even parts of the liberal mainstream media aren’t on board with the plan. The New York Times Editorial Board slammed student loan forgiveness back in May as “legally dubious, economically unsound, politically fraught and educationally problematic.” A Forbes article called it “bad policy and bad politics.”
Yet as with most other issues, the Biden administration seems beholden to a small cadre of far-left activists and politicians who drown out all other voices. With the litany of other crises weighing down Democrats’ electoral prospects, using student loan forgiveness as a political gimmick was never a particularly promising strategy. But given the economic state of the country and the specifics of the Biden plan, it may just be the final nail in Democrats’ coffin this November.
Shane Harris is a writer and political consultant from Southwest Ohio. You can follow him on Twitter @Shane_Harris_
Sure, why not shift of hundreds of billions of dollars of student debt onto the American taxpayers to pick up the tab. Whatever it takes to get Democrat votes seems to be OK with the American Socialist Party. Oops I mean the Democrat Party, because even though they openly support virtually every tenet of socialism, they don’t want to be labeled Socialists because some of their voters might actually understand what socialism leads to.
So sure, lets pick up the student loan debt for all those screaming, ignorant snowflakes, who took out 5 and 6 figure student loans in majors that have absolutely no marketable value in the real world and have been reduced to working at Starbucks or sitting on their parents couch waiting for their 6 figure dream job with a corner office. After all, the motto of the left is whatever is necessary, whatever it takes to get what you want. So what is more billions of debt heaped onto the American taxpayer at this point? Rising inflation is already decreasing the value of the dollar at a faster pace than usual anyway. Lets see if we can trigger real runaway hyper-inflation like so many of the other sociallist Utopias are experiencing. Look at annual inflation rate in Argentia, Venezuela, half of Africa and parts of western Europe. There’s nothing like a bracing rate of annual inflation measured at 20, 30, 40, 50 or even 60 percent to focus the mind on what “social and economic justice” really translates into.
For those that got loans to attend college CAN PAY THEIR LOANS OFF.
Nobody made you take loans.
And NOBODY else should pay for your loans.
Especially TAX PAYERS.
If you don’t want to pay for loans then DON’T get them.
Bottom line: IT’S YOUR RESPONSIBILITY. NOT OURS.
GROW UP!
Promises for votes. That is all it is, kids. You will be paying on that for your entire careers. But that is ok, this is the instant gratification you all have known all your lives. No big deal if you have to struggle to buy your new EV, you will never be able to buy a home anyway.
Forget about student loan debt…all it will do is create more debt fir everyone else..with even higher taxes. This Democrat party needs to change its name…no longer democratic! And stop paying China…by the way…kick the Chinese Government out of our country!
Another ploy to “purchase” votes for the Democrat party (read Socialists) at the expense of the American taxpayers, conveniently overlooking the fact that very few of the bunch that might vote for this does not pay very much in the way of taxes; after all, taxes are for the ‘little people’ and most of Congress have tax shelters and tax free income set up for themselves leaving the ‘little people’ to pay the bill for their actions; whether good or bad or somewhere in between. It is very upsetting. All members of Congress should have to divest themselves of anything that does not have a tax bill associated with it!
If they give these whinny britches student loan forgiveness then I want a refund on all my loans that I paid back. Bet those a assholes won’t provide that to us.
What’s next? Credit card forgiveness? Or is it to pay your car off if you buy electric? Again , screw the people that make their payments! I’m even stupid enough to pay for my goods before I leave the store!
I agree. The blood sucking demorats won’t give us back what we faithfully paid on our student loans
Nobody forgave our generation’s students loan debt! Sure, it costs a way lot more today but it’s all relative to today’s wages too. Hourly wage back then was like $1.10 / hour
Will you also be making sure the student and students parents are registered to vote since this is the carrot??
It’s called buying votes which is supposedly illegal but democrats always find a way and use our money to do it so it costs them nothing.
AMAC quoted the New York Times. Why would anybody cite the New York Times as a legitimate news source? They are no more a legitimate news source than Twitter is a measure of sentiment of the country. They are a rabid liberal Democrat publication they had daily meetings on how to bring down Donald Trump. They also denied that the Holocaust occurred
Why should we pay for what actually turns out to be dem indoctrination and booze/drugs parties? Why should we pay for other people’s college when we couldn’t afford it ourselves? This is outrageous!!!
Democrats know they are in a losing position this November so they are going to cram so much crap at this country before the end of the year. This is so stupid since those who haven’t gone to college, paid their loans off, or paid for their college education themselves are going to be on the hook for all the spoiled woke kids who took out these loans teaching these spoiled woke kids that they don’t need to be responsible adults!!! What happens to these spoiled woke kids when they spend too much on their credit cards? Are we responsible folks going to pay those bills for them too? Our country is catering to a spoiled woke population of immature, immoral, selfish bunch of brats!!!
Never underestimate the Democrats willingness to use YOUR money to buy votes for themselves.
Demcrats love the idea of forgiving students
If JB doesn’t do what the Liberal Left wants, then Hunter is on their list for a hanging. Now JB is too scared to take a chance so he will bend (over).
Also, how about all of the votes they will lose of those who have already paid all or most their loans?
Student loan forgiveness is only good for those who have government loans. All other loans will still have to be paid by the people with that debt. So they’ll be paying twice. Once for their loan and taxes for the others. How does he figure that’s helping anyone.
Calling this “forgiving” just means that all taxpayers will bear the brunt of the cost in order for Democrats to buy off more votes. We must remember that whatever government uses tax dollars for comes directly out of our bank accounts.
This is nothing more or less than “voter tampering” ( in short, it’s still. f r a u d ) …. hoping to BUY VOTES, in exchange for loan forgiveness. One big problem is, these loans are NOT “forgiven” as such. They are “”GIVEN” to US, the citizenry of the United States of America TO PAY … Ultimately, WE pay those loans via higher & more taxes. UNDERSTAND THIS:
GOVERNMENT “GIVES” YOU NOTHING, UNLESS THEY HAVE FIRST “STOLEN” IT FROM “WE, THE TAXPAYERS”.????????
Washington D.C. is such a tiny piece of real estate…. Yet it is “STUFFED BEYOND CAPACITY” with Gypsies, Tramps & THIEVES. Thieves holding the majority of space.
Why is secondary educ so expensive that there must be massive loans considering there is no education at all at the end
Buying votes with taxpayer money. How is this legal?
This is horrible. It’s a slap in the face for me. I worked3 jobs in college to avoid student loan debt. Also, why should the person who didn’t go to college have to pay the debt for someone who did go to college. While the government is at it, how about paying off my house loan and car loan
Not only will student loan “transfer” bust the economy even more than it is now, imagine how much colleges will be reckless in their budgets and increase tuition when they find out the government will end up paying off the loans.
Democrats don’t want to even go this route. They will never win another election because people that went to college and paid for it will never forget this.
If Democrats wanted to really do something they would contact the colleges and find out why it is so expensive these days. It was always expensive but it is outrageous these days. Professors are paid huge salaries is one reason and I’m sure there are other places where they could cut the cost of higher education.
As many conservatives have pointed out, “debt cancellation” is in itself a misleading term; from a financial standpoint, the debt would not be truly “cancelled,” only transferred. The burden of student loan debt would be assumed by the U.S. government, and by extension American taxpayers – many of whom did not go to college precisely to avoid having to pay back student loans.
I don’t think people are understanding this. Read this part carefully. You tax money was used to finance student loans. It was paid to the universities the student signed up with. The program looked very promising initially. Student goes to college, gets degree, gets high paying job, pays lots of taxes and repays loan in a few years. So what happened, why didn’t that simple plan work? Personally, I’d like to hear the stories, what happened? Tell me the story, how did people accumulate $10k,30K,100K in student loan debts that they can’t pay?
Well student loan forgiveness has about 25% support and it is all from young people who know they are being greedy. The other 75% are tax payers who either did not get to go to college or went to college working their way through or have paid off their loans. The result is they know the students could and should pay back their own loans.
This is a lower for the democrats, however all they know is lying, bribery, and corruption. So they will do it.
This will make everyone say hey youbsaid it was treason when trump moved money to pay for the wall and now you are doing it to cover college people’s poor choices.
Criminals all!!
How is this fair to millions of students that worked their tails off to pay off their student loans? I predict this brilliant DemonRAT idea will go over like a turd in a punch bowl!
Perhaps these people should have thought about cost vs benefit BEFORE taking on massive debt. It is completely wrong to expect other people (who paid their tuition) to pick up the tab.
Seems they intend to cause as much damage possible before being tossed from office.
Biden still trying to BUY Votes for the years to come. 102,000 people died from the drugs that Biden, Harris and Pelosie do to the open borders. They want the Illegals to vote.They should never vote until they are Legal and take the test. IMPEACH Biden, Harris And Pelosi. I stand by this.
U.S.M.C. Vet…
We have a generation with no fiscal responsibility…I’m talking about the administration and congress.
Student loan transfer to the American taxpayer. So WRONG! The college should stop charging enormous amounts of money for a questionable education. Blame the universities. Don’t steal $$$ from hard working people, so democrats can get more votes. AWFUL……….
Someone said they wouldn’t forgive the Democrats if student loans are paid. Well , should they be forgiven for the summer of love in Seattle and Portland, for the destruction of history in many cities across America. How about no bail for murders, rape, burglary in all our cities across America. I think not !
If this happens I DEMAND refund of my student loan I paid off in the 1970s!
What is good for the goose is good for the gander.
Equality demands FAIR play, government crooks.
My grandson is starting community college this fall because of costs. He made sure that all of the credits from his major will transfer to university when he gets his masters. He is working and saving his money to pay for his education. No big loans to pay off!! It will take longer, but it will keep him out of debt. Good conservative boy, he had already learned that a democrat in office is bad for his economy!
Vote buying is all about passing a bill that has enough money in it to upfront pay donors and buy votes like students, who can’t add anyway!
Here we go again, Biden played this “Trump card” as a plank in his campaign back then to buy the student vote and hasn’t paid it off yet (??), how dumb does he think college students are???? I will feel VERY cheated having worked hard ( and summer educated in the Lumber Mill business ) substituting for the regular employees going on vacation, to NOT incur a student debt; what is in this handout for ME other than more taxes? Democrats are just alienating everyone who has already paid their loan or never incurred one to start with NEVER to vote for a Democrat until he or she no longer remembers this “slap in the face”; they just UN-BOUGHT my vote; hope all you passed college graduates feel the same way.
Currently reading a interesting novel by John Grisham, “The Rooster Bar” on this topic. Perhaps students were hyped with lies that a degree would insure good jobs on graduation that don’t exist?
Shane Harris/AMAC Take some time and report how much Student Loan Debts these Democrats in the US House have not paid yet? How much do They owe? Their close family members owe? I’m sorry to tell you but just those known as the 5, with AOC, and ilk, it’s over a million dollars!!Good grief American Citizens, WAKE UP
Higher education is a liberal disgrace to call a spade a spade. the hierarchy of ‘notable schools’ are all liberal manure holes, and the idea of more and more education,; and more money thrown at it for at best dubious results. I’m not against education, but as it exist in this country is a financial and social black hole.
the carrot that will never be eaten.