The election has not yet been certified, but Democrats are already making it clear what they intend to do if and when Biden is declared the winner.

Chuck Schumer, Elizabeth Warren, AOC, and other Democrats are pressuring Biden to forgive student debt through executive order.

Lucas Manfredi writes at FOX Business:

Progressives ramp up pressure on President-elect Joe Biden to forgive student loan debt

As President-elect Joe Biden is preparing for his transition to the White House in January, progressives in the Democratic party are ramping up pressure on the former vice president to forgive student loan debt once he takes office.

“Student loan forgiveness is good, actually,” Congresswoman Alexandria Ocasio-Cortez tweeted Monday. “We should also push for tuition-free public colleges to avoid this huge debt bubble from financially decimating people every generation.”

She argued it is “one of the easiest progressive policies to ‘pay for,’ with multiple avenues from a Wall St transaction tax to an ultra-wealth tax to cover it.”

Ocasio-Cortez isn’t the only one calling for student loan forgiveness.

Sens. Elizabeth Warren, D-Mass., and Chuck Schumer, D-N.Y., introduced a resolution back in September, in which they urged the next president to use executive authority through the Higher Education Act to “deliver meaningful relief to struggling Americans and broadly cancel up to $50,000 in student loan debt.”

There is already plenty of push back on this idea:

Robert Verbruggen writes at National Review:

Forgiving Student Debt Is (Still) a Dumb Idea

Some on the left, perhaps most prominently senators Chuck Schumer and Elizabeth Warren, have encouraged Joe Biden to forgive loads of student debt via executive order. I’ve written numerous times about how bad of an idea this is, most extensively in a print piece last year, but here’s a brief overview.

Basically, the student-debt “crisis” is nowhere near as bad as some like to pretend: Most borrowers pay a small share of their income toward their loans, and borrowers who get into trouble can already have their loans delayed or forgiven through various programs. The folks this system neglects are not people with huge debt burdens — who tend to make high incomes and are exceedingly well-covered by existing forgiveness programs anyway — but those with smaller debts, particularly those who didn’t finish college.

Forgiving debt for everyone is a poorly targeted policy no matter how you look at it. It helps the wealthy more than the poor, it’s not fair to people who paid off their debts early, and it’s not a good way to stimulate the economy during COVID. (As the center-left economist Jason Furman points out, the forgiven debt would be taxed, which would cut into any immediate economic effect.)

Colleges and universities should have some skin in this game, but if the higher education implosion continues due to lower enrollment and the pandemic, expect Democrats to ride to their rescue in more ways than one.

 

 
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