Newsline

Education , Newsline

Biden Forgives Another $4.8 Billion in Student Debt

Posted on Thursday, December 7, 2023
|
by Outside Contributor
|
36 Comments
|
Print
student debt forgiveness

The Biden administration has forgiven another $4.8 billion in student loan debt, with critics saying it’s unfair for taxpayers to pay for other people’s loans.

The Biden administration announced Wednesday that it would forgive an additional $4.8 billion in student loan debt for 80,300 borrowers, bringing the total that taxpayer burden to $132 billion.

“I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams,” President Joe Biden said in a Dec. 6 statement, in which he made clear that his administration is undeterred by the recent Supreme Court decision to block a wide-ranging initiative to cancel up to $20,000 in debt per student.

“In the wake of the Supreme Court’s decision on our student debt relief plan, we are continuing to pursue an alternative path to deliver student debt relief to as many borrowers as possible as quickly as possible,” the president added.

The latest action brings the total number of borrowers whose student loans have been forgiven to over 3.6 million.

“This level of debt relief is unparalleled, and we have no intention of slowing down,” Secretary of Education Miguel Cordona said in a statement.

The latest round of student loan forgiveness includes $2.6 billion for 34,400 borrowers under the public service loan forgiveness (PSLF) scheme and $2.2 billion for 46,000 borrowers under the one-time payment adjustment for income-driven repayment (IDR) plans.

The announcement drew mixed reactions online, with critical comments including calls for the Biden administration to “stop giving out free money to people that willingly took out debt to buy useless degrees.”
Many critics of President Biden’s student loan forgiveness scheme have panned the debt wipeout as unfair to people who sacrificed to pay off their student loans or never racked them up in the first place—but now are being forced to foot the bill for other people’s debts.

Debt Forgiveness In Focus

Amid the president’s long-standing pledge to erase student debt, the Biden administration in August 2022 unveiled a plan to forgive up to $20,000 in student debt per person for about 40 million borrowers.
At the time, the White House said that President Biden’s student loan forgiveness scheme would cost $24 billion per year, or $240 billion over a 10-year period. Projections by the Penn Wharton Budget Model and the Committee for a Responsible Federal Budget put the figure at between $330 billion and $500 billion over a decade, respectively.

Under that sweeping plan, taxpayers would have absorbed up to $10,000 in outstanding student debt for individual borrowers earning less than $125,000 per year or $250,000 for married joint filers.

At the time, Senate Minority Leader Mitch McConnell (R-Ky.) called President Biden’s student loan cancellation scheme “socialism” and a “slap in the face of every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our Armed Forces in order to avoid taking on debt.”

But a lawsuit put a halt to the Biden administration’s $20,000 per student forgiveness plan. In a split decision on June 30, the Supreme Court voted 6-3 to strike it down.

Sixteen million people had been approved for debt relief, and “the money was literally about to go out the door,” according to President Biden’s remarks following the ruling.

“And then Republican elected officials and special interests stepped in,” he continued.

“They said no, no—literally snatching from the hands of millions of Americans thousands of dollars in student debt relief that was about to change their lives.”

Promising to provide further student loan relief by other means, the president said at the time that the “decision has closed one path, and now we’re going to pursue another.”

Presidential Campaign

Some political strategists have said that debt forgiveness actions like the one the White House announced on Dec. 6 could help President Biden as he runs for re-election—even if those actions are blocked by the courts.
“Many average voters are skeptical about student debt relief, but it’s not their top issue. For young borrowers, it is a life-shaping concern that could drive them to the polls,” John Pitney, a political scientist at Claremont McKenna College, told Newsweek earlier this year.
Republican nominees for president—including the frontrunner by far, former President Donald Trump—have voiced opposition to student debt forgiveness.

President Trump reacted to the Supreme Court ruling by saying at a campaign event in June that the debt cancellation “would have been very unfair to the millions and millions of people who paid their debt through hard work and diligence—very unfair.”

Florida Gov. Ron DeSantis, who trails President Trump in second place, has said that it’s wrong for taxpayers to be forced to shoulder the burden of other people’s debts.

Nikki Haley, former U.S. ambassador to the United Nations who’s currently polling in third place, said canceling student debt is unfair for those who worked hard to pay back their loans or make other career choices that didn’t involve going deep into debt.
Voters are generally split on student debt forgiveness, polls show, though people who are still paying off their student loans—understandably, perhaps—tend to favor having their debt canceled.
 
Reprinted with permission from The Epoch Times by Tom Ozimek.
Share this article:
Subscribe
Notify of
guest
36 Comments
Most Voted
Newest Oldest
Inline Feedbacks
View all comments
Theresa Coughlin
Theresa Coughlin
11 months ago

how many courts have to tell Biden that he DOES NOT HAVE THE AUTHORITY TO DO THIS!? If trump had unilaterally done this, he would have been impeached again. Also, the student loan forgiveness plan is blatantly unfair to people who did not go to college and people who diligently sacrificed to pay off their student loans.

PaulE
PaulE
11 months ago

Despite the Supreme Court ruling that the POTUS does NOT have the unilateral authority to forgive student loans, our socialist leader continues to do as he pleases with no real consequences. Just like what you would see in any other authoritarian regime where “rule of law” doesn’t exist and the Supreme leader rules by simple dictate. Yet half the country sees nothing wrong with any of this. Which is why the grand experiment of the Unites States of America has come to an end. When the people of any nation not only tolerate this behavior but actually support it, things like rule of law or rights and freedoms no longer have any meaning. Sheep don’t get to decide what is for dinner, because they are on the menu.

Kim
Kim
11 months ago

Student loan debt forgiveness is one of the most outrageous moves from the democrats and it is designed purely to win votes. Most of us paid back our loans, as responsible citizens would do.

If they’re able to bypass decisions from the Supreme Court, I want to know where my hard-earned tax dollars are going. I demand that each state publish in newspapers and online (as they do for divorces, police reports, court proceedings, etc.) the names of those recipients, where they work, and their income. Public shaming might deter a few.

America is on the brink of serious tumult if we don’t get back to normal politics. In one form of revolt, we might see fewer dollars get to the Treasury as they pass from one person to another under the table. That’s why the dems wanted to double the size of the IRS. Why should any of us be forced to finance someone else’s debts, especially when those recipients make more money than those paying the debt?

For heaven’s sake, kick these radical politicians out of Washington and bring sanity back to politics. I’d ask which side of the brain they’re thinking with, but I’m not sure they have any brains at all.

anna hubert
anna hubert
11 months ago

Does he have a printer in his basement that just prints unlimited supply of money? He sure would be less generous if even a little contribution toward limiting the debt were required from him

Kathy
Kathy
11 months ago

Biden is determined to buy as many votes as he possibly can with our taxpayer dollars! He is letting in illegal aliens every day and he expects us tax paying US Citizens to pay for their housing, healthcare, education and job training. Student loan forgiveness is just another feeble attempt to win gullible voters. It sounds nice, “I’m helping young people by reducing or completely eliminating their student debt “. What Biden is really doing is taking more money out of American taxpayers pockets. Then he has Janet Yellen print more money thereby making the money that we have worth less and less every day! People need to wake up and realize that Joe Biden is turning our beloved country into a socialist’s dream!!! #Show Biden out the door in 2024!

Gabe Hanzeli kent wa
Gabe Hanzeli kent wa
11 months ago

the courts said this was illegal. therefore biden is committed another crime.

all of those leftists who say there is no evidence: guess what? you’re wrong.

put Biden in prison now. PBPN

Tony
Tony
11 months ago

How can this happen? With the Supreme Court saying no this Democrat bunch of communists just goes right ahead anyway. I spent $100K sending my three kids to college by refinancing our home. Here I am at 70 years old and I still have a mortgage. WHERE IS MY MONEY!

Pat R
Pat R
11 months ago

Biden administration is pushing this student loan payoff to buy votes for the 2024 election. At least SCOTUS tried, but really have no authority to stop him. The authority is within Congress who, evidently, has become neutered. Congress holds the purse strings and can simply withhold or withdraw funds from the Dept of Education since Sec’y Cordona is gleeful with “we have no intention of slowing down“. Anything to buy votes to bankrupt the US and destroy credibility internationally – which is gone now under Biden anyway.
Our only hope is Biden and nearly all Democrats (wish it would be ALL of them) are voted out next Nov.

Linda
Linda
11 months ago

According to Biden’s ‘work-around’ once the US Supreme Court ruled against his policy, the Biden again violated our laws. Again against the best interests of American citizens. ????

RogerL
RogerL
11 months ago

Buying votes with taxpayer dollars!

Jackie
Jackie
11 months ago

I am very frustrated with the federal government being in the unconstitutional and unauthorized business of education and student loans!!

michaelR
michaelR
11 months ago

The Crats are great at spending money,…..especially when it’s not theirs. That’s about all they know how to do.

Robert Zuccaro
Robert Zuccaro
11 months ago

Biden has to win back the anti-Semitic vote after his (wavering milquetoast) support of Israel. I like the “Biden forgives..” part as if he’s paying for it.

Elaine
Elaine
11 months ago

It is time for our Congress to step up and do their job. They, as well as, the Supreme Court need to stay on top of this Executive Branch who is going against its authority and trying to run the USA as a dictatorship.
If the Congress doesn’t do their sworn duty then they should be fired with the Executive branch going with them. No job done, means no pay from the taxpayers!
Congress get to work as Congress not as political parties!

Bob
Bob
11 months ago

I paid off my student loans and parent loans for my two kids, so I’m sure Biden is going to send me and everyone else who paid their loans a big rebate check since he’s forgiving all those who received useless degrees, like any Studies program that qualified them to work a fast food drive up window and not be able to pay off their loans, right? $ 4.8 billion will sure buy a lot of votes!

Granny26
Granny26
11 months ago

I couldn’t afford to send my own kids to college but am forced to pay for others that go to college and take moronic subjects like liberal arts, etc where they can’t even get a decent job when they graduate to pay their bills. Leave it to Butthead Biden to think we all want to pay for other peoples kin to get a college degree. Let him pay it out of his own pocket, he’s gotten enough payoffs from China to do it.

Myrna
Myrna
11 months ago

It must be easy to forgive a debt when the load is not transferred to your own account. BIden is giving away what would have been future repayment to tax payers.

Jane
Jane
11 months ago

He is disgusting. He is doing this for votes. I had to pay mine. I didn’t finish college because I couldn’t afford it. This is not teaching young adults a damn thing. You sign your name – you pay the price. the Supreme Court has stated that this debt forgiveness is illegal. Biden is committing a crime. I have heard where the news media is calling President Trump a dictator. Biden is the dictator. The House of Representatives need to remind him that he has no authority.

Brenda13
Brenda13
11 months ago

By forgiving the loans, Biden seems to be saying that the students were sold a bad product and must have their loans wiped out. Many would agree that going to college is a bad deal, but that money is from American taxpayers. The government has mismanaged the money and should not be allowed to make any loans in the future, and must collect on these existing loans.

DJ
DJ
11 months ago

Only if you voted democrat, I believe this administration is totally corrupt

Smike
Smike
11 months ago

Many years ago I worked 10 years for federal service and left. I was forced at the time to take my federal retirement funds, it wasn’t a option – they mailed them to me – $12,000. 30 years later I worked at another federal job for 10 years and retired – total of 20 years federal time. I was told I needed to pay the retirement back so I sent them a check for $12,000. They wouldn’t accept the check. They said I had to pay interest on the $12,000 and they wanted $52,000. I refused and they deduct $400 from my retirement monthly as a penalty. So why is Smokin Joe holding me to the letter of the law and waving it for these slacker student? Not to mention his son who forgot to pay his taxes for a few years – ooops sorry, didn’t think anyone was looking.

Massive Health
11 months ago

How lovely! This is a really fantastic piece of writing. Much obliged for the information you have supplied.

Steve V
Steve V
11 months ago

Dems don’t care how many times the courts reject student loan forgiveness. What matters is the perception and the media will support their failed agenda. It’s all about buying votes (without spending anything). Therefore in-debt idiots will vote D not realizing that they will end up paying the loans for which they signed.

Arlene
Arlene
11 months ago

This is so unacceptable! What can we do? Why can’t someone stop this lunatic Biden?

Gerald
Gerald
11 months ago

This is nothing but pure inflation. Keep doling out fiat money for nothing, and the “HELP WANTED” signs will NEVER come down. Baby boomers worked hard for decades to build a flourishing economy. Now it’s time for the next generation to pick up the stick and get to work,

Scott
Scott
11 months ago

Will Joe show a little respect for those that paid their way through college and send those poor dears a 1099 as it should be considered income.

Laken RIley, a 22 year old nursing student from Georgia who was killed by an illegal migrant.
WASHINGTON, DC - JULY 12: United States Department of Justice sign in Washington, DC on July 12, 2017
The right side of history
Manhattan street scene in New York. Manhattan street scene taken from middle of road in New York City, USA.

Stay informed! Subscribe to our Daily Newsletter.

"*" indicates required fields

36
0
Would love your thoughts, please comment.x
()
x

Subscribe to AMAC Daily News and Games