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Biden Caves to Far Left on Student Debt Forgiveness

Posted on Tuesday, May 3, 2022
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AMAC Exclusive – By Seamus Brennan

In the latest desperate attempt to salvage Democrats’ chances in November’s midterm elections, President Joe Biden announced last week that he is actively looking at ways to forgive most, or potentially even all, federal student loan debt after months of mounting pressure from progressives. But despite what the White House hopes, the move thus far appears to be far from a political slam dunk, and threatens to further mire the country in economic turmoil.

According to a report from the Washington Post, Biden is considering ways in which he can use executive action to give debt relief to “people who earned less than either $125,000 or $150,000 as individual filers the previous year.” Although no “final” decisions have yet been made, the Post reports that, in 2019, 97 percent of all student debt was held by Americans earning less than $150,000 as individuals or less than $300,000 as couples—indicating that Biden’s intention to “limit” relief to individuals earning less than $150,000 would impose hardly any limitations at all, and would in effect constitute nearly universal student loan forgiveness.

The prospect of widespread student debt forgiveness at a time when the country is seeing 40-year inflation highs and Americans are increasingly struggling to afford gas, groceries, and other everyday necessities is a worrying sign for American taxpayers—many of whom did not attend college, did not collect large federal loans, or already paid off student loans of their own, but will nonetheless be forced to shoulder the debt burden of others. Despite what the White House would like Americans to believe, simply forgiving billions of dollars in student loan debt won’t come without adverse economic consequences.

According to the Committee for a Responsible Federal Budget (CRFB), cancelling $10,000 in debt for every student borrower (one potential model floated by the administration) would cost taxpayers approximately $245 billion. Meanwhile, according to the left-wing think tank People’s Policy Project, the poorest 20 percent of Americans account for only eight percent of the nation’s total student debt, the overwhelming majority of which is held by America’s richest and most affluent college graduates. As National Review’s Michael Brandon Dougherty notes, nearly 40 percent of student debt “is held by students who earned advanced degrees—many of them now doctors and lawyers.” Unemployment for the college-educated, he continues, “is less than 2 percent.”

Committee for a Responsible Federal Budget President Maya MacGuineas similarly sounded the alarm. “Full debt cancellation,” she writes, “would be a massive hand-out to rich doctors and lawyers, would worsen our inflation crisis,” and could possibly “cost as much as universal pre-K or a full extension of the expanded [Affordable Care Act] subsidies.”

Last week’s development follows months of mixed messaging from the White House surrounding the issue of debt forgiveness. Despite repeatedly signaling he would “immediately” cancel student loans upon taking office throughout the campaign season, last December, to the dismay of many in his party, Biden refused to extend the student loan payment pause, which was initially set to resume in February. But following an outpouring of intense pushback from progressives, Biden gave in and extended the pause until May 1.

Biden’s recent indication that he will move forward with across-the-board debt forgiveness is the latest episode in a long pattern of Biden submitting to the desires of the most far-left voices in the Democratic Party. Though progressive figures like Senator Elizabeth Warren (D-MA) and Congresswoman Alexandria Ocasio Cortez (D-NY) have vocally urged Biden to move ahead with student debt cancellation, only 38 percent of young Americans and 19 percent of all voters support such measures. Even people in Biden’s own camp have claimed that the president does not possess the legal authority to cancel student debt. House Speaker Nancy Pelosi, for instance, waved off the possibility last July, claiming it was “not even a discussion.”

As such, should Biden follow through with his stated intention of cancelling student debt on a broad national scale, he would be opening both himself and his party up to yet another massive political liability that could make this November’s midterm elections even more humiliating for the already crisis-ridden White House.

The White House also appears to have devoted little to no effort to actually address the root of the student debt crisis – namely, skyrocketing tuition costs and predatory lending practices. Even if every penny of student loan debt is forgiven, that will do nothing for the students currently racking up tens of thousands of dollars in debt right now, or students that will head to the same high-priced colleges in the future. At a press conference last week, White House Press Secretary Jen Psaki dismissed a reporter’s question about lowering tuition costs, saying that she “didn’t know” if lowering costs was as important as forgiving debt in terms of reaching a long-term solution to the student debt problem and quickly referred the reporter to the Department of Education. If Americans needed any more evidence that Biden’s debt forgiveness scheme was nothing but a political ploy to motivate turnout among young voters in November, they need look no further than Psaki’s comments.

But perhaps even more concerning, if Biden manages to succeed in implementing his plan, he would be actively worsening the inflation crisis that he is ostensibly trying to end, while at the same time effectively awarding government handouts to his progressive base of voters—much of which is already financially well-off.

As Dougherty of National Review observes, “The plan being mulled by the Biden administration” is “a brazen act of class warfare by the affluent against everyone else.” The plan, he continues, would amount to “a politically, and cosmically, unjustifiable robbery that offers yet more rope for the decadent and totally indefensible American college system to become even more decadent and indefensible.”

But if current polling is any indication, the further Biden drags himself and his administration to the left, the more unpopular he and his party will become with the American people. No matter how much money the President doles out in misguided attempts to placate angry voters, it’s unlikely that he or any other Democrat will be able to erase the stain of their failed policies.

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Elaine
Elaine
2 years ago

… student debt forgiveness is an Elizabeth Warren thing. Now we definitively know that, behind the curtain, pulling strings on Joseph Biden, one of them is, senator Elizabeth Warren –

Patriot Eric
Patriot Eric
2 years ago

These people are nuts!! Inflation at a 40-year high, cost of food, gas, etc. through the roof. Sure let’s print more $$ to guarantee a destroyed country! #FJB #MAGA

TPS
TPS
2 years ago

So, guess that puts the taxpayer on the hook for student’s bad decisions. What’s next, forgive all those who can’t manage their credit card debt, or bought a car they can’t afford or house. Where does it end?

J. Farley
J. Farley
2 years ago

This cancelling the student debt, for the most part only helps rich Doctor’s and Lawery’s and aids College and Universities that pander to the Left, and average Jane and John America, will end up paying the debt through higher taxes.
Here’s a thought, Kiss my back side!

Dave H
Dave H
2 years ago

My concept of a government sponsored student loan program would have the payment on outstanding loans go back into the “pot” for funding future loans. Such a program should require minimal annual government expenditure as there would always be loan repayment monies being returned to support future loans.

Of course such a program would be a state program as the Constitution gives the federal government no authority over education.

The very thought of loan forgiveness is Un-american as our culture is built upon individual responsibility. .

As taxpayer, I would consider allowing re-negotiation of these government guaranteed loans. That is the interest rate could be set lower in accordance with current interest rates or the re-payment period could be extended to lower the monthly or quarterly payments BUT the entire loan amount plus interest would be paid.

Texas Resister 64
Texas Resister 64
2 years ago

Any relief for student debt would leave the former student borrower with a better credit-worthiness than our federal government. This is utter madness, but we have an utterly mad administration.

Charles Kyle Brown
Charles Kyle Brown
2 years ago

Of course, Bidin caved, he’s controlled by the Easter Bunny!

anna hubert
anna hubert
2 years ago

I have no problem helping students who are worth it they are a benefit but all those useless illiterate loosers NO

Granny26
Granny26
2 years ago

I don’t think the loan itself should be forgiven but the ridiculous interest they charge should be forgiven. Should be illegal the interest the charge and the way they keep adding it on. My daughters $1500 loan for beauty college ended up over $5000.

elysummers
elysummers
2 years ago

THis madness cannot go on. We are spiraling into a very unhappy place.

C Thomas
C Thomas
2 years ago

So, government’s granting me a Carte Blanch incentive to breach my fiduciary agreements?

R.Thomas Guth
R.Thomas Guth
2 years ago

I’m not sure, but I don’t think the president has the authority to cancel student debt. If he tries, it will surely go to court.

jocko
jocko
2 years ago

WELL, THAT WILL MAKE THE BANKS HAPPY AND TAKE IT OUT ON TH REST OF US TO PAY HIGHER FEES. AND SCREW UP THE ECONOMY EVEN MORE. A DOUBLED EDGED SWORD. ALL libs ARE A CANCER

USN Retired
USN Retired
2 years ago

I already paid for my college. How about Biden pays off my credit cards?

Jerry
Jerry
2 years ago

If the government was paying for college, I would have gone. It isn’t fair to the people who have struggled to pay off their loan. The taxpayers need to revolt on this give-away society. The Treasury’s printing press is working around the clock to print worthless paper money.

Patty
Patty
2 years ago

By forgiving federal student loans, Biden will effectively lose the votes of people who worked their way through college, paying those costs themselves, as well as those who worked hard after college to make good on their promise to pay back their loans.
This Administration is “N O T” GOOD FOR AMERICA IN ANY WAY, SHAPE OR FORM !!!

Tim Toroian
Tim Toroian
2 years ago

And the right is going to get his ass.

Jerry Bangs
Jerry Bangs
2 years ago

Can one person (biden) do this??? This amounts to a huge tax increase on all taxpayers. Primarily to benefit the already rich families that have most of the loans. What is the purpose of congress?!? Do we even have a congress anymore??? Are we now ruled by a dictatorship??!!

Patrick LaCross
Patrick LaCross
2 years ago

I do agree that you should you borrowed the money and got your degree you should have to pay it back. But I do know people that went to ITT Tech school. One went there and told them that he wanted to be an engineer. they sold him a degree in Construction Management. Telling him that all of the credits would transfer to a state college where he could finish his degree. They change the name of the degree to project management, none of the credits are transferable, and ITT Tech is now out of business. So there is no one to be held accountable. A seventeen or eighteen year old is taken advantage by a salesman that just wants a commission and doesn’t really care about the student. is nothing more than a scumbag, land our government finance this school.

Becky
Becky
2 years ago

Charge every demonRat in this country their entire salary until this is paid off….In Full..
No taxpayer should be billed.
Just like sending all the illegals to DC and politician’s homes.
Let those who want this insanity bear the brunt of it.

DonS
DonS
2 years ago

How about Joe Biden paying for Hunter’s prison term as “education?” Joe can pay for Hunter’s prison term and satisfy a few of us!

Hal
Hal
2 years ago

I guess Joe Hidin’ Biden is so far out of touch to some extent as to the political purpose of buying the votes and support of academia (Administration, Faculty, Students, Parents with Children in College level schools, etc.) The DumbocRats are holding Joe Hidin’ Biden to the precepts of the Dumbocrat Party …. which is bribe a segment of the voters with their own money (since they don’t realize it will eventually be paid with INFLATION coverage of debt. Look out, Nation … I feel a big recession coming on … and that means getting the Nation’s military in action to cover for it and get out of it. That’s what LBJ did with the Viet Nam War, and Roosevelt did with the European Theater of WWII.

Rodewaryer
Rodewaryer
2 years ago

As if, the people this affects aren’t already grossly entitled in their own spoiled brat brains, this debt relief would be pouring fuel on a RAGING fire. They’re impossible as it is, whiney brats in adult bodies that ‘know’ we didn’t land on the moon, that don’t know what gender ‘really’ is, can’t drive manual transmissions and really can’t hardly drive at all let alone turn their own lights on. Now pour ‘this’ fuel on this worst generation fire….

VoterAnn
VoterAnn
2 years ago

Let’s not forget the role universities have played in this whole scam. Many of them, while possessing HUGE endowments, have grossly overcharged their students, while indoctrinating them with Marxist philosophies with which to infect younger children in our schools and pampering and further developing their activist hive mentalities about America’s founding, our democracy , free speech, and the right to life.
( And exactly of what value to us is a Marxist wielding a degree in “woman’s studies”?). Here’s a thought: since these students were scammed with “degrees” from these colleges, whose endowment amounts are so vast, the SCHOOLS should forgive their debt, NOT the taxpayers!!!

TIKA
TIKA
2 years ago

THAT will NEVER happen. it’s simply a vote gathering ploy. you may conclude, “What do i have to lose? it would be great to get rid of my loans.” it’s on the top of the list of lies to make the election about something voters dream about that just to get their votes. THAT is exactly how we’ve gotten American Communism.; THAT’S what you have to lose!

Samuel
Samuel
2 years ago

… anyone in agreement to receive a student loan bailout should be made to permanently sign away their FICO; anyone taking bailout money for their student loan should automatically be laden a permanent sub-700 FICO; if you take bailout money for your student loan, your FICO should be permanently **** asterisked –

Linda
Linda
2 years ago

Do we get the money back that we paid for our kids student loans?
I want my mortgage paid off!

Candy Reid
Candy Reid
2 years ago

If they do this I feel they should then pay off all my credit card debt and my car loan. Especially since I have already paid my student loans off and my daughter has paid hers off as well. Why should this entitled young generation get all this free money while the rest of us did not and we are in debt in other ways now part being from us having to pay off our student loans and trying to stay afloat during this “Plandemic” and the clueless destructive executive orders (one being shutting down our energy independence) and policies of this so called president that now inhabits the White House. EVERY TAX PAYING AMERICAN should get free money in the amounts of these entitled student loan borrowers. We should ALL get a hand out then – SEEMS ONLY FAIR!

Linda2
Linda2
2 years ago

We paid for our University bills and our children’s (3). If they can’t pay for their school they shouldn’t be going. They qualified for those loans or they would not be going, Make them pay as we did. Or refund what we paid!

Harry
Harry
2 years ago

Class action lawsuit by taxpayers. We need our houses paid off , our Cars, but most of all money to pay for food and fuel. Snd retirement money lost!!

Jose Flores
Jose Flores
2 years ago

Another desperate attempt by this administration to save a rapidly sinking ship. It won’t work. The American people are fully aware of their latest scheme.This is going to be tough sell for the Democrats. It’s just another way to harvest votes for their party.

Jack
Jack
2 years ago

This doesn’t help those who have had their “Federal Loan” sold to other companies such as Navient.

William Smith
William Smith
2 years ago

Just another one of the Biden administration cluster F***, and of course the people are gonna belive more of their lies , I don’t belive a word that comes from the white house unless its negative. Pretty darn sad

A. Grace
A. Grace
2 years ago

If he uses an executive order to do this, I think executive orders should be limited to how many a president could write during their 4 year term. This is a major expensive decision for one man to make. One man!

Brian
Brian
2 years ago

I chose to work and not attend a brain washing university. If they do this everyone will want something of similar value from the government. I would like to withdraw the money from my IRA without paying any taxes. But that still won’t make me vote democrat.

Graham Taylor
Graham Taylor
2 years ago

Try being a dedicated teacher for the last 30 years with an initial debt of 63,000 that has multiplied into 140,000 in student loans at present.
While earning on average income of less than 50,000
Not all degrees are equal whether it be a doctor or an associate. My spouse is an education doctor (EdD) underpaid and not appreciated. Unfortunately we are not rich and we’re not able to pay this off.
She has been making minimum payments for 20 years and still owes 140.000.
Maybe she would’ve been a better off not getting a degree as some would suggest. In the meantime students from all over our area approach her as they grow older and give praise.
She will soon go into retirement maybe with and even keep this burden to the end of her life.
Nonetheless she loves her job and always will believe that she made a difference.

Denise
Denise
2 years ago

They should instead grand some amount of loan forgiveness for jobs that are needed like nurses and teachers after a student graduates and works in the field for a determined number of years forgive a certain dollar amount of their loan. This could change with what jobs are needed to be filled in the country.

Steve
Steve
2 years ago

And what about the future? Will it all be free from now on? They’ve lost their minds. No common sense left. They all need some serious therapy, starting with sleepy creepy joe.

Lisa Skinner
Lisa Skinner
2 years ago

Let’s start with getting rid of interest for all student loans. Banks should not be profiting off people getting a higher education if that’s what they want to do.

Sid
Sid
2 years ago

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