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Obama Education Secretary Says Biden Should ‘Unilaterally’ Cancel Student Loan Debt

Obama Education Secretary Says Biden Should ‘Unilaterally’ Cancel Student Loan Debt

“All too often, the crushing weight of student debt prevents people from even considering buying a home, beginning a family, or starting a new business”

What’s to stop the next president from cancelling car loan debt or mortgages? How is this different?

FOX Business reports:

Biden should ‘unilaterally’ cancel student loan debt, says Obama’s Education Secretary

Student debt is a costly burden for millions of Americans who will be expected to resume federal loan payments in May. Over the past few months, a growing number of Democrats have called on President Joe Biden to fulfill his campaign promise of canceling student loans before forbearance expires.

The latest is John B. King, Jr., who served as the Secretary of Education under former President Barack Obama and is currently running for governor of Maryland. King urged Biden to “use his executive authority to unilaterally cancel student debt for each borrower” in a recent editorial.

“All too often, the crushing weight of student debt prevents people from even considering buying a home, beginning a family, or starting a new business,” King wrote. “This is indisputably a crisis.”

Despite calls from prominent lawmakers, the Biden administration has not yet announced plans to deliver student loan forgiveness via executive action. The White House recently suggested that the president is counting on Congress to make progress on canceling student debt. And notably, the president didn’t mention student debt cancellation during his first State of the Union address on March 1.

Keep reading to learn more about the likelihood of student debt cancellation, and consider your alternative options like income-driven repayment (IDR) and student loan refinancing. You can compare student loan refinance rates on Credible for free without impacting your credit score.

While student loan debt relief is “a realistic solution that can transform millions of lives,” King said, it’s just one proposal that should be met with “even more bold actions” to address the student debt crisis going forward.

King advocates for debt-free public college for low- and middle-income students, as well as “truly affordable college for all.” That includes tuition-free community college, which has been proposed by the Biden administration.

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Comments

another communist he shoved up our axxes.

“This is indisputably a crisis.”

The crisis is Biden’s cratering poll numbers. They’re hoping that transferring the responsibility for student debt from the borrowers to taxpayers will buy the votes of millions of leftist-indoctrinated soon-to-be dead beats.

Buying votes with tax money? Yep.

henrybowman | March 6, 2022 at 5:15 pm

“Obama education Secretary Says…”

Joe channeled Harry Truman’s advice (over his noisy personal channel) and proceeded to surround himself with people screwier than he was.

“What’s to stop the next president from cancelling car loan debt or mortgages? How is this different?”

Well, one difference is that the Fedguv doesn’t hold car loans like they do college loans, and therefore can’t write them off. But your point on mortgages is taken… and scary.

    Antifundamentalist in reply to henrybowman. | March 7, 2022 at 10:33 am

    I’m fine with cancelling or reducing interest, given some of the predatory practices applied in the student loan industry (personally experience here), but when it comes to the principle, you have an obligation to pay back what you borrowed that should not be waived. If you can’t afford college, don’t go.

Right. Let all the people who paid for their own college education, or who couldn’t afford it, and didn’t go — Let them pay for the snowflakes who spent four years protesting and got a “degree” in Gender Studies.

Definitely a case of buying votes with tax money. Wildly inflationary, and terribly unfair to the blue-collar workers who pay taxes to pay off these loans for more fortunate students.

JackinSilverSpring | March 7, 2022 at 9:00 am

Student loans plus allowing less than qualified students have led to useless “studies” majors. In turn those have led to unemployable graduates. Cancelling student debt would only reinforce the trend in majoring in useless “studies” majors. A better idea would be for the government to get out of the student loan business and let the universities and colleges take over. One stipulation would be that the studen loan borrower can declare bankruptcy. Universities and colleges would then have a tremendous incentive to change their as well as eliminate useless majors.

One approach would be to limit scholarships to just want is raised expressly for that purpose plus the payout of any endowment devoted to scholarships. This would eliminate the widespread practice of raising tuition to create unrestricted funds to provide scholarships. There is no justification for students who are paying their own way to be forced to subsidize the students on financial aid.

The problem with loan forgiveness is that it disrupts the laws of supply and demand.