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Democrats Already Pressuring Joe Biden to Forgive Student Loan Debt

Democrats Already Pressuring Joe Biden to Forgive Student Loan Debt

“We should also push for tuition-free public colleges to avoid this huge debt bubble from financially decimating people every generation.”

https://www.youtube.com/watch?v=TxoyzfZB2Ec

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:

https://twitter.com/PartymanRandy/status/1328524697533870081

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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Comments

Such a lol

    notamemberofanyorganizedpolicital in reply to 2smartforlibs. | November 17, 2020 at 4:21 pm

    Many will disagree and I fully understand why, but wouldn’t it be sweet for President Trump to beat the DIMS to the draw and issue forgiveness this week.

funny. the biden-harris admin will repeal the horrific (not so much…) muslim country travel ban the obama-biden admin enacted.

Free shit for everybody by executive order, but Trump was the tyrant.

I’ve completely lost any faith I had in the American voter. They’re a bunch of idiots.

Worse than that, it’s punishing those who were self-sufficient, creative, responsible, or whatever that enable us to pay off our debt.

    henrybowman in reply to WestRock. | November 17, 2020 at 7:27 pm

    Bottom line, that is the core principle of all socialism, is it not?
    “From each who toiled for his wealth, to each who would not.”

We are witnessing the effect of letting commies run our public schools. Half the country truly believes you can just tax the other half to get what you want and everything will be fine.

“We should also push for tuition-free public colleges to avoid this huge debt bubble from financially decimating people every generation.”

Instead they’ll be financially devastating people OF every generation — whether they go to some stupidly expensive and useless institution or not.

    Dusty Pitts in reply to Dusty Pitts. | November 17, 2020 at 3:34 pm

    I’d almost be willing to sell back my degrees for what I paid in tuition to get them, if I hadn’t gone to a school that was cheap even by pre-student-loan standards.

    Antifundamentalist in reply to Dusty Pitts. | November 17, 2020 at 7:02 pm

    The way to avoid the debt bubble is to put a halt to most financial aid pro, which will in turn stop Degree Creep – you can’t demand a Master’s Degree for an entry level position if there are not enough useless Master’s Degrees available.

Ha, let me assure you it won’t be the adjunct professors (or even many tenured profs, I suspect) who would benefit from this transfer of wealth – it would be the university presidents and their buddies, along with other useless administratives like campus diversity officers and the like.

I am not an expert in these things. But based upon the past history of similar wacky leftist schemes (the so-called War on Poverty, “Cash for Clunkers”, the savings and loan crisis, the Fannie Mae crisis of 2008, etc) there will be baleful effects on the economy.

    Economics is a tough mistress. $40 government vouchers for digital TV converter boxes in 2009 assured American consumers that no boxes would be offered to sale for under $40 (and vanishingly few were offered at $40). Yet now that the voucher program has expired, WalMart carries them for $20, and it’s clearly not an “economies of scale” effect.

What “forgive”? The lending institutions are entitled to get their $$ – and this is going to come from.

Wait for it…

THE TAXPAYERS…

Biden and Giggles will do to our nation the damage hillary clinton was supposed to have done – if we allow them to steal this election.

We can only hope there is a special kind of hell for Sessions and Barr. And we can only hope they get their first taste while still alive.Those 2 rats alone could have prevented the coming civil war. Instead, they facilitated it.

I guess I’m a sucker.

Took out loans to pay for my college education, BS Civil Engineering. My parents could not afford to pay tuition @ state school.

Got a job and paid off my loans, early and in full, because that’s what I promised to do when I signed the loan papers.

It’s that simple.

    Dathurtz in reply to GLB. | November 17, 2020 at 4:28 pm

    Yep. I married a woman who had $50,000 in student loan debt. I was a long-term sub and my wife was a waitress (thankfully she now uses her degree). We still managed to pay her $800 a month payment. If a sub on $90 a day and a waitress can afford it, then pretty much everybody can.

Well, I’ll get to cancel about 30 or 40k but I’ll likely be out of a job when the whole higher ed ecosystem collapses under enormous downward pressure. Thanks Dems!

The Friendly Grizzly | November 17, 2020 at 6:03 pm

Play by the rules, get screwed. Defend yourself, get arrested. Pay your bills, you are coerced to pay the bills of freeloaders.

This is not my America.

TANSTAAFL. Somebody has to pay.
.

Well, why should we pay for our own indoctrination anyway?

    henrybowman in reply to alohahola. | November 17, 2020 at 7:41 pm

    We aren’t even doing that. We’re paying for other peoples’ indoctrination.

      Dusty Pitts in reply to henrybowman. | November 18, 2020 at 1:44 am

      We’ll be paying to crank out elite-spawn who want nothing more than to take everything away from us and leave us no alternative but to obey their merest whim.

      Hard pass.

If you think administrative salaries, and university budgets generally, were grossly inflated, just wait until universities are “tuition-free”. There is nothing so expensive as “free” college.

    Dusty Pitts in reply to randian. | November 18, 2020 at 1:47 am

    There used to be a slogan on bumper stickers that said, “If you think education is expensive, try ignorance.”

    Our elite colleges and universities accepted the challenge and proved the slogans right. Now people pay hundreds of thousands for ignorance, where I paid a few thousand for an education.

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