Biden Reportedly Preparing to Forgive $10,000 in Student Loan Debt Per Borrower
“Some Democrats and activists have insisted that President Joe Biden needs to cancel at least $50,000 per borrower to make a meaningful impact on the country’s $1.7 trillion outstanding student loan balance.”
Joe Biden has been under pressure from the progressive wing of his party to cancel student loan debt. The idea isn’t very popular with anyone else, but it looks like Biden is going to do it.
The current plan is to allow $10,000 per borrower.
Brett Samuels reports at The Hill:
Biden zeroes in on plan to cancel $10,000 in student loans per borrower
President Biden is nearing a decision on student loan debt forgiveness, with the president and his team zeroing in on canceling $10,000 per borrower, with some potential caveats.
White House officials cautioned no decision has been finalized as Biden continues to weigh his options. The president is scheduled to speak at the Naval Academy’s commencement ceremony on Friday and at the University of Delaware’s ceremony on Saturday.
Multiple reports indicated Biden considered using the weekend commencement ceremonies to announce some student debt forgiveness, with The Washington Post reporting the timing was changed in the wake of a school shooting in Uvalde, Texas, that left 19 children dead. A White House official disputed that was the case, however.
“No decisions have been made yet — but as a reminder no one has been required to pay a single dime of student loans since the president took office,” deputy press secretary Vedant Patel said.
Of course, none of this is good enough for the left.
The average student loan debt is over $37k
They're going to try to get away with doing as little as possible, then get offended when it doesn't translate into approval bumps
$10k doesn't address the problem https://t.co/pHKYKArzBY
— Michael Sainato (@msainat1) May 27, 2022
$10k means tested forgiveness is just enough to anger the people against it *and* the people who need forgiveness the most.
$10k relieves most the people who owe the least. What relief is there for the most desperate? For them, interest will undo that 10k fast. We can do better. https://t.co/HhfWbeCf0v
— Alexandria Ocasio-Cortez (@AOC) May 27, 2022
.@DerrickNAACP on reports Biden will cancel $10K in student debt: "President Biden, canceling $10,000 in student loan debt is like pouring a bucket of ice water on a forest fire." pic.twitter.com/CzJNugwBGS
— Ayelet Sheffey (@arsheffey) May 27, 2022
Annie Nova of CNBC has more on that:
As Biden administration leans toward $10,000 in student loan forgiveness, advocates push back
Advocates expressed anger and disappointment on Friday in response to news that the Biden administration is leaning toward forgiving $10,000 in student loans per borrower.
Some Democrats and activists have insisted that President Joe Biden needs to cancel at least $50,000 per borrower to make a meaningful impact on the country’s $1.7 trillion outstanding student loan balance. More than 40 million Americans are in debt for their education, and about 25% of those borrowers are in delinquency or default.
“It’s an absolute insult,” said Thomas Gokey, co-founder of the Debt Collective, a national union of debtors. “This is less than what he promised on the campaign.”
While running for president, Biden had vowed immediate debt cancellation of $10,000 per borrower, and he hadn’t said anything about limiting the relief to people who earn under a certain amount. Now the administration is looking at imposing income caps of $150,000 for individuals and $300,000 for married couples for the relief, according to The Washington Post.
Charles C.W. Cooke of National Review reminds us that even Nancy Pelosi said Biden doesn’t have the authority to do this.
The executive branch has no generalized power to forgive student debt. Asked about the idea last year, Nancy Pelosi confirmed simply that “the president can’t do it. That’s not even a discussion.” https://t.co/eWlSNoJCpU
— Charles C. W. Cooke (@charlescwcooke) May 28, 2022
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Comments
We live in a dictatorship run out of DC. The only question is who the real dictator is?
Well, we know who the blankity blank it isn’t.
Not Biden. He wouldn’t make a good a pox on a monkey’s ass.
Another quarter trillion paid for with higher prices on everything. They should just abolish the student loan program entirely.
It does not escape my notice that rampant inflation doesn’t just help student debtors at the expense of savers and the financially prudent. It’s a big giveaway to anybody who took on ludicrously huge loans to purchase any asset whose value isn’t pre-set in US dollars – like real estate in some of our most expensive cities, or highly leveraged stock portfolios.
Meantime, the GOP will snivel, whine, and wet themselves with their usual impotence.
They’re too busy fucking around with ‘negotiating’ on ‘gun safety’ to bother.
You know, I think this is a good plan for once.
Let the idiot cancel the student debt.
Every time a RINO decides to vote for some gun control gimmickry to get the left out of his shorts, we keep trying to remind them that they are appeasing people who are never going to vote for them regardless, while pissing off people who already voted for them at least once. It’s amazing how many of them just can’t understand that tradeoff, and get burned by it in the next election.
Well, this is exactly what Brandon is doing this time: pandering to all the gibsmes who were never going to vote Republican in a million years, while pissing off a lot of moderate Democrat voters who all paid off their own loans and will be angry they now have to pay off somebody else’s for them.
But it is overkill. Quid Pro Joe Xiden-Hiden, and his party, are already toast. Giving away more taxpayer money to those who don’t deserve it is completely unnecessary and will not save his dead a** in any November yet to come (or his party for at least a November or two)..
“…moderate Democrat voters who all paid off their own loans…”
All three of them.
🙂
Great to be king
Loans are not forgiven. The debt is just passed along.
All loans are paid eventually, whether by the debtor or the creditor. In this case the creditor will be bent over and done dry, and that creditor is the American taxpayer.
Is there anyone here naive enough to think any of this sort of thing will stop if the GOP retakes the houses of congress?
I am not.
The Uniparty of The United States.
Oh I am. I totes believe in Mitch McConnell. He’ll restore constitional order.
Now, is there enough alcohol in the world for me to believe that?
This is hilarious. It’s broad spectrum enough that it will light inflation on fire even more than it already is, and is small enough to be largely irrelevant to the folk who are actually getting screwed by student debt.
I’m trying to think of they could have possibly screwed this up even more? I’m sure there’s a way, and I’m sure they’ll find ot, but I’m just having a failure of imagination trying to figure it out.
They think the recipients will like the gift, and enough remains for more gifts in the future should the recipients vote correctly.
“I’m trying to think of they could have possibly screwed this up even more? I’m sure there’s a way, and I’m sure they’ll find ot”
I already know what it will be.
They will pay millions of dollars to people who, as it turns out, never had any outstanding student loans at all.
NOBODY is being screwed by student debt. They signed a contract to repay the loan. Since when does the Resident have the power to abrogate contracts and let those with current contracts out of part of their obligation?
Yeah, my wife and I both worked to get me through college. With a wife and two children we didn’t have an easy time of it, I worked night shift and she worked weekdays,. When I wasn’t in class during the day, I kept the kids to save on childcare costs, I did have the GI Bill, Married with two children I received the grand sum of $250,.00 per month of full time attendance. I went to a new four year state school which was making sure it would receive full accreditation by only hiring PhDs. During the War in RVN PhDs were almost a dime a dozen. Few classes failed to have a PhD – and with no graduate program, the PhDs taught. I graduated with a decent education and no debt to repay.
This is wrong on so many levels. I have paid for an associates, three bachelors of sciences, a masters of sciences, two masters of education, and a Specialist of education degrees. I be damned if I need to pay for somebody’s education
“ I be damned if I need to pay for somebody’s education.”
But, you will. Or else.
The only way this makes any sense at all is if someone in Biden’s family (or one of his crony’s families) owes exactly $10k.
Otherwise, it looks like just an attempt to generate bad publicity and lose votes ahead of the midterms.
Lose votes? He just got every soft-major student, and the professors’ votes.
Not like he didn’t have them already, but those that normally wouldn’t go to the polls will go.
Griz,
$10K per isn’t a enough to sooth or placate the grifters with Grad school levels of debt. That’s where the big dollar debt resides; not with someone who dropped out of a JC after two semesters.
It’s enough to piss off everyone who paid their own way and helped their kids and grandkids. It’s a slap in the face to every Veteran who risked life and limb and endured hardship to EARN the GI bill.
The politics of this isn’t well thought out. No one thinks this is a good idea as presented nor do I see how it could survive a CT challenge.
Good luck showing standing
If the CT is fine with the executive branch creating authority out of whole cloth then so be it but no whining when DJT or DeSantis choose to use this new, unlimited power for the executive to make law.
I’m sure the Biden crew will take the time to structure it so nobody has standing to challenge it. And this could mean that the borrowers will be required to apply for loan forgiveness. If the forgiveness is automatic and causes some people to incur a debt to the IRS, then some borrower, or the spouse of a borrower will have standing to challenge it. There must be people in special situations where 10K in imputed income causes them to owe more than that amount in extra tax or reduced social security. That is why they are probably so slow in doing it.
I grant your points about being pissed off. But look at the integrity, or lack thereof, of our elections process.
Now look at the verdict in the Sussman case today. Now, with a straight face, tell me we are under a rule of law where said court challenge could possibly win since the purpose of the loan forgiveness is to help Democrats.
Subotai Bahadur
Too easy. ‘Your Honor, if you let Biden do it then DJT or DeSantis will also use this precedent to do things he finds convenient; choose wisely’.
You don’t understand how this works. Biden and puppeteers get to do it. No precedence is allowed to Trump/DeSantis/any conservative.
That’s how corrupt courts and government work.
We have a dual system of law, There’s the Justice system for us and the Just Us system for them.
Would like a breakdown as to percentages by degrees… STEM vs liberal Arts… Functional versus Fluff.
Can I get a tax credit for the $10k of student I already paid back? It’s the only fair way to do it.
Since you worked and paid back the loan, the current regime counts you as a bourgeois exploiter of the masses and they may penalize you for paying it back. Wait for it.
Subotai Bahadur
The U.S. Government now owns 60% of all home mortgages and 92% of all student loans, 48% of all households now receive some type of government benefit. With 40% of all children born to unmarried mothers, these mothers are increasingly marrying Uncle Sam, as the institution of marriage slowly collapses. Without the need to earn a living to support a family and pay off mortgages, males are adrift, working gig and temporary jobs, displaced in their traditional roles, by a growing government. With the Government producing nearly 50% of GDP, we’ve become the new Soviet Union, where Communism rules households and the economy.
Maybe marriage can make a come-back if family court rules and laws were made fair.
Not likely until the welfare benefit is removed.
On the bright side, that $10,000 is taxable income in the year that the loan is forgiven, and they’re not being given any actual money to pay the tax with.
Soon to be waived by congress.
Not according to the IRS:
“Amounts that meet the requirements for any of the following exceptions aren’t cancellation of debt income.
EXCEPTIONS to Cancellation of Debt Income:
6. Any amounts discharged from certain federal, private or educational student loans”
It can get a bit more complex than that. I have 4 kids who survived to adulthood [lost one stepson to a congenital disease]. Of the 4, two went to college and got their degrees, and two went a different route and ended up owning their own businesses, doing well. One daughter actually got two degrees in only 5 years. And yes, there were student loans involved. After her double degree graduation, she came home and was getting ready to start a job in her field. That was stopped by an encounter with necrotizing fasciitis [flesh eating bacteria]. We were able to save her life, but when all was said and done she was 100% disabled, and is living at home on Social Security.
Her student loan payments are suspended because of her disability . . . BUT as far as Social Security is concerned a $`10K forgiveness [or any amount] counts as cash income. Which takes her off of her disability status and eligibility for the minimal income and most importantly medical care.
Subotai Bahadur
You’re incorrect on that. Loan forgiveness, at least any program up to this point, is not taxable income.
Normally you are correct; straight forgiveness without disability or service qualification is taxable. However the ‘American Rescue Plan’ legislation contained a provision that makes federal student loan forgiveness non taxable through 2025.
Pay your own debts. If you can’t afford it, don’t get it. Pick a major that will allow you to pay your own debt.
Why doesn’t the media go after the superinflationary tuition increases?
Why can’t the $10K be pulled from the huge endowments of the college that come from the giant tuitions and donations from alumni?
Why does a person smart enough to go into a trade have pay for some snowflake studying Gender and Old Church Slavonics?
There’s a national union of debtors?
Really? You categorize Old Church Slavonic as a snowflake studies degree? It’s still used in churches and is valuable to linguists; it’s the language Saints Cyril and Methodius used when translating the Divine Liturgy to the vernacular for the benefit of the slavs they evangelized in Moravia and which the used for the Bible, creating the Cyrilic alphabet to do so.
It’s valuable to Eastern Christians both Catholic and Orthodox as it is the language originally used in our Divine Liturgy.
Father used it for a centennial Divine Liturgy, which was wonderful.
I thought the legislature has the power of the purse. Where is Biden going to get the billions of dollars he would need to do this?
It also seems strange that it’s not illegal for a president to hand out money to get votes. This is an obvious scam that says “Vote Democrat, and you won’t have to pay for college!!”
“I thought the legislature has the power of the purse. Where is Biden going to get the billions of dollars he would need to do this?”
The student loan paper is already an asset. He simply tears it up. No actual funds are needed. In essence, he is throwing money he already has, down the hopper. Bypasses Congress entirely.
Then I want a check for $40,000. My wife and I worked hard, scrimped and saved and put four kids thru school with no student loans. We should have spent the money on vacations, a fancy car or a wine cellar, let the kids borrow and then Brandon writes it off.
Ok sure. Now give me back the additional years of Service I had to reenlist to serve in order to qualify to transfer my remaining GI bill to my Daughter.
Years of combat service, on top of the previous combat tours, mind you, that resulted in me being discharged with disabilities. Build the Time machine and get MR Peabody to run it back for all the Veterans who made that decision. Give me my back everything I sacrificed to provide my Daughter’s education.
Thank you for your service, Chief. My late husband, a Vietnam vet, died from illnesses related to his service. As his surviving spouse, I was entitled to a stipend of about $1000 per month for each month when I was a full-time college student. That went a long way toward helping me finish my degree – and I think he would be happy to know I got that.
I’m sure he would. I certainly approve for what’s it worth but that’s a separate VA survivor benefit not the GI bill.
The point though is that forgiveness of student loans taken out by adults to pay for college plays the rest of us for suckers. Folks who couldn’t afford it decided on other options and are expected to live with the consequences.
People who never attended or paid their own way or earned a scholarship or earned the GI bill through service or those like me who reenlist again to deploy again to combat again to be able to transfer their benefits to their child are wondering why they made the effort.
I suspect people will, as always, react rationally to incentives and adjust their behavior and choices to reflect the moral hazard being created.
Sorry Commo, that was not meant to be a down vote!!just a fat finger error trying to upvote
Well, my wife and I paid $800 a month when I worked at a private school and she was a waitress. Makes me think others can pay it, too.
They have to structure it in such a way that nobody has standing to challenge it. If the loan forgiveness counts as income to the IRS, then someone may have standing to challenge it, unless the borrower has to actually apply for loan forgiveness.
Why don’t they just reassign a portion of the debt to every illegal aliens? Perhaps if faced with $20,000+ debt per person it might slow illegal immigration.
Blood from a turnip comes to mind
Those illegal aliens are coming here because they are impoverished in their own countries, so impoverished that they can pay the cartel $5000 to get them across the border. Sure some of them don’t have the money and they smuggle Fentanyl for the cartel, that is the resourceful kind of new American we want!
( Then my tongue went through my cheek!)
When I saw that Brandon wanted to give $10,000 to poor student debtors I could only think of the Central and South American dictators ploy of throwing a pittance at the peasants for their votes
With Brandon’s inflation, that &10,000 will be a pittance soo.
If biden can hand wave away 10K in debt, he can wave away 100k in debt, and he can wave away any IRS tax due.
In fact, he can wave away all the mortgage debt held by the US government… Good thing that’s not held primarily by democraps.
It is not just those who worked their asses off to avoid debt for themselves or so their children would have none who may be mad, but what about the kids starting college this fall? The ones starting in September 2021 get $10K for free, but this fall nothing?
Really shows how incompetent Biden and his whole administration is at doing things.
$10,000?
They really think that will make their supporters happy and mollify the people on the right? It won’t. This could actually hurt them in the midterms as lefties say screw it and don’t bother to vote.
If you’re going to try to “buy votes” you got to go all out. Push hard to relieve all school debt even though you know it will fail. Push, push, and push some more. Blame everything on those stupid GOP idiots when it fails.
What a chump I was. I made the highest monthly payments I could stand and paid my loan off in full.
As a side note, I also took a course in college that would actually earn some money in the real world, I took out as little as possible in student loans and worked.
I have to learn to adjust to the new reality and start living off other people’s money. It would be a lot easier.
Where in the Constitution does this braindead frontman, have the power to loot by diktat? What about all the Democrats squealing, “But our democracy!”
Like the Sussman acquittal this is exactly the kind of immorality I expect to ooze from DC. I’m jealous. Why did I work hard all my life? I could have gone hundreds of thousands in debt getting advanced degrees in Lesbian Tahitian Pottery, moved to Brooklyn or some other place where people are stupid enough to elect a barrista to Congress, and voted myself more and more benefits.
Actually in this case I’m in favor of it. $10k. That will piss everybody off. Not enough for the commies, too much for the rest of us.
^ This.
Biden’s insane plan is the answer to the question,
“How much would you pay to kill Democrat chances for the next ten years?”
I think y’all seriously misunderestimate the marxist left and their penchant for theft.
He’s not “forgiving” debt, he’s transferring that debt from the people who got the $$ but don’t want to pay it back, to people who got jobs to pay back their own loans already.
The travesty is against the folks who did not go to college, started working and pay their debts or started a business and took out loans. They have to pay for these people who could not understand basic math – shame on public education – or ignored the fact that their degree was not going to create an income large enough to live their “lifestyle” and pay their bills.