Biden Considering Another Months-Long Pause on Student Loan Repayments and $10K in Loan Forgiveness
“At least we are all being open about the fact that this is a shameless vote-buying scheme.”
Joe Biden is reportedly considering yet another months-long pause on student loan payments, in addition to student loan debt forgiveness of up to $10,000.
The pause on student loan debt payments began over two years ago, in the spring of 2020.
This is such an obvious ploy to gain favor with young voters through what is essentially a payoff.
Nancy Cook reports at Bloomberg News:
Biden Considers New Pause on Paying Back Student Loans, $10,000 Relief
President Joe Biden is considering extending a pause on student loan repayments for several more months, as well as forgiving $10,000 in student loan debt per borrower, according to people familiar with the matter, as he seeks to appeal to young voters ahead of the November midterms.
The current moratorium on student loan payments expires Aug. 31, and a fresh pause could extend either through the end of 2022 or until next summer, the people said. Biden told reporters last week that he hoped to decide on an extension by the end of August.
Debt forgiveness may follow the extension, but the president hasn’t reached a final decision on either move, the people said. Biden has been weighing appeals from progressives to forgive large amounts of student loan debt almost since entering office, and the extended deliberations have frustrated some advocates.
It’s probably safe to assume this will happen, as student loan services have already been told not to contact borrowers.
NBC News reports:
Student loan servicers told not to contact borrowers as payment pause deadline nears
A little more than a month before the student debt moratorium is scheduled to end, the federal government has told loan servicers not to contact borrowers about resuming payments, a trade group official said Monday.
The Education Department has been telling loan servicers not to reach out to borrowers as recently as “the last couple weeks,” said Scott Buchanan, the executive director of the Student Loan Servicing Alliance, which represents all of the companies that service the federal loans subject to the administration’s moratorium.
NBC News has asked the Education Department for comment.
The Wall Street Journal first reported Monday that loan servicers have been told not to contact borrowers.
President Joe Biden in April extended the pause on federal loan repayments until Aug. 31, saying the nation was still recovering from the coronavirus pandemic.
A White House official said Monday night that “no decision has been made” about whether to extend it again. The official said Biden will make a decision before Aug. 31.
This is all about votes.
At least we are all being open about the fact that this is a shameless vote-buying scheme.
Working families funding student loan debt for disproportionately wealthy and disproportionately white grad degree holders is 2022 Dems in a nutshell. https://t.co/VNnzThuT97
— Matt Whitlock (@mattdizwhitlock) July 26, 2022
People on the left are pushing for even more.
Why cancel $10k in student debt when all of it can be canceled? Why make a conscious decision to keep people in debt?@POTUS can show that he’s working for the people and not loan refinancing companies by canceling every penny of student debt.
— Nina Turner (@ninaturner) July 26, 2022
Biden will keep kicking this can down the road as long as it’s politically advantageous.
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I have no doubt he will extend the “pause” past the mid-terms in order to buy votes. He might be able to pass the $10K in forgiveness, but that depends on how much push back he gets from the blue collar unions whose workers will have to pay for the loan forgiveness.
It’s cute that you think unions care about taxes or what their members may pay in taxes.
He might be able to sell this if he was willing to go after the ed establishment. About 40% of people who begin college don’t graduate. Of the 60% who graduate close to half work in a job that either doesn’t require a college degree or in a different field than their degree. See the bazillion criminal justice majors as one example.
How to sell it:
1. Confirm the rates of employment and drop out at every institution.
2. Require institutions to cosign the loans.
3. Continue Pell grants.
4. Future subsidized loans made only to fields where a shortage exists; Nursing, engineering, any field that Corp are being granted Visa quota to import workers.
5. Focus reform on academic mis match by reviewing the institution’s markers of predictive success; a GPA level and SAT/ACT/GRE score. Allow a 10% deviation max to qualify for a federally subsidized loan. The institution could still admit and offer their own loan to student that didn’t make the cut.
6. Cast a very critical eye over administrative bloat in academia which leads to higher costs. Have the Bobs from Office Space show up and downsize these wasteful positions. ‘What would you say you do here?’
Do that and the admin could get bipartisan buy in. Absent those sorts of reforms? Nope. Not one dime.
Some of this is true and some of it is a bit mis-classified.
There are some jobs that don’t require the degree but you can get ahead faster with one…Fire and police are notable examples.
Also, if one gets a degree and it benefits them, even if not in their field, there really isn’t much of a problem. It’s the ones that have no use for their degree whatsoever or have no business being in college because they can’t handle it that should be the target of reform. That reform should NOT be to dumb down college to make their path easier, as has been the case up to this point.
If there’s a shortage of skilled people in engineering, nursing, etc, be very careful about subsidizing college degrees in these fields. You’re paying for leftist indoctrination and administrative bloat.
The bad stuff is no longer an unwanted by-product of the technical degrees, it has largely replaced the technical skills. We can no longer assume a newly-minted engineering graduate is a competent engineer. Employers who need these skills better be seeking another place to get them, or ramping up in-house training. The colleges have failed in their original mission, and more money will mostly make them worse.
Not sure he can do that without the express will of congress
See West Virginia v EPA
the covid mandate, etc
He can until (months later)..he can’t. The emperor may not have any brains but he has a pen…. Remember the first day? “What is this?” …from back of the room .. “Just sign it”.
Consider the inflationary aspect of canceling or delaying student loans. There too much money circulating now.
Remember, inflation is purely a function of gov’t policy. Biden’s policy is to inflict social pain to preserve Democrat power.
Leftists can afford new Teslas, but they cannot afford to pay back their student loans.
The increase in the availability of student loans starting in the early 1980’s was never to make college more affordable.
It was always a way to increase revenue to the colleges which would filter down to the employees, mostly leftist.
Notice how rarely Ds vote for a bill that would send lots of tax payer money to Rs.
from 1980 to 2005 college BA degrees increased from 900k to 1,400k – approximately a 50% increase
science math, engineer degrees have had approximately a 10% increase
while social science degrees, journalism, have all had 200%-300% increases.
In the 70’s my summer job would have paid for about 40% of my Oberlin costs (3000/7000). For my son, he would only be able to cover about 15% from his job were we to waste money sending him there.
Yeah Joe, that’ll fix the economy and save your political arse.
Not.
Bidencares: delayed responsibility, shifted responsibility in the model of Obamacares.
They should brand it a ‘recalculation’
Huh. I grew up dirt poor. Hand-me-downs, hunting and fishing for food, food stamps, canning a garden, picking berries and wild apples. Wore plastic bread bags in my boots during the winter to keep my feet dry from the holes and home knit mitten and hats. First of my family to go to college. How did I do it? Served my country, got the Army College Bill then went to a public university then worked 2 jobs during the summer as a night greens keeper at a golf course and a brick mason. Worked 2 jobs during the school year as a night/weekend janitor and work study. Graduated Magna Cum Laude Biology/Animal Behavior double major and paid off the $8,000 student debt in one year. I’ve since spent 30yrs+ working 60-70hr weeks as a truck driver to pay the bills.
Tell me why I should pay any of the bill for professional protesters, party animals and grievance study, Black Studies, Woman’s Theory and the like people that hate our country? The hell with them and the hell with you, Brandon.
This. You are the inconvenient truth in the Dem party’s scheme.