Biden Has Canceled $17 Billion In Student Loan Debt, Without Scoring A Political Win, CNN

[appalachiablue]

- As college students around the country graduate with a massive amount of debt, advocates display a hand-painted sign on the Ellipse in front of The White House to call on President Joe Biden to sign an executive order to cancel student debt on June 15, 2021 in Washington, DC.
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- CNN/MSN, March 27, 2022. ~ Many important points are brought up in this lengthy article.

Joe Biden has canceled more student loan debt than any other President -- a notable fact that's flown under the radar. Taking a piecemeal approach, the Biden administration has expanded existing loan forgiveness programs for borrowers who work in the public sector, those who were defrauded by for-profit colleges and borrowers who are now permanently disabled.

Those moves have delivered significant relief to more than 700,000 borrowers, totaling more than $17 billion.

Yet some voters feel misled by the President, who had supported canceling $10,000 for each of the 43 million federal student loan borrowers while on the campaign trail. "He's not delivering on his promise," said Jennifer Lewis, a 57-year-old nurse practitioner in Washington state who has about $80,000 in student loan debt. "If he were to run again, I would think twice about voting for president at all," added Lewis, a self-described "super progressive."

Biden is also facing a drumbeat of pressure from some key Democratic lawmakers who are urging him to do more and cancel $50,000 per borrower. That puts Biden in a tough political spot as federal student loan payments are set to resume May 1 after a two-year, pandemic-related pause. Biden could decide to extend the pause again, a move that could please borrowers in a midterm election year who are struggling with rising inflation.

But not every Democrat thinks it's a good idea to broadly cancel student debt, and some economists warn that extending the payment pause could make inflation worse.

"I think it's important to keep in mind that there is far from a consensus viewpoint among Democratic members of Congress and Democratic voters that large sums of debt should be canceled," said Michelle Dimino, an education senior policy adviser at Third Way, a think tank that promotes center-left ideas. - Pandemic, inflation set back some borrowers: Sandeep and Tom Berry were hoping Biden would cancel some of their student debt but have lost hope of that pledge coming to fruition. The North Carolina couple, who both identify as moderates, have $160,000 in student loan debt borrowed to pay for Tom's MBA...

- Read More,
https://www.msn.com/en-us/news/politics/biden-has-canceled-dollar17-billion-in-student-loan-debt-without-scoring-a-political-win/ar-AAVylu0
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- TIME, 'Why Federal Student Loan Payments Probably Won’t Restart This May,' March 25, 2022.
https://time.com/6160275/student-loan-moratorium-expiration-may/

[Me.]

2. What A Guy!

[childfreebychoice]

3. Do those of us who have repaid our loans, get a refund

To not vote for pres Biden because he hasn't cancelled all debt...ideologues, a la hrc haters. SMH

[3Hotdogs]

4. In the OP, we have a nurse practitioner with 80K in debt. If she is any good at being a

nurse practitioner, she is making more per year than most of us will make per year in our lifetimes. She should be able to pay it off in 5 years or less. Regarding the other people, they signed for the loans.


On the other hand, free tuition would benefit the entirety of our society. Much of our prosperity in the 50's and 60's came from the free college GI benefits.

[LetMyPeopleVote]

5. Debt cancelled so far was due to fraudulent schools-Biden needs legislation to cancel regular debt

President Biden does not have the power to cancel student debt

Link to tweet

Advocates of debt cancelation by executive order point out that the Higher Education Act gives the Secretary of Education power to “enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired.” This provision would seem to give the Secretary broad power to cancel student debt.

But as financial aid expert Mark Kantrowitz notes, another part of the statute limits the secretary’s authority. He only has the power to cancel obligations owed to the U.S. government “in the performance of, and with respect to, the functions, powers, and duties, vested in him by this part.”

In other words, the Secretary of Education only has the power to forgive student debt when Congress gives it to him.

When President Biden has canceled student debt, it has always been under the authority of a specific program authorized by Congress. Borrower defense is one example: Congress gives the Secretary of Education authority to cancel debt after instances of outright fraud. Congress also allows the secretary to cancel debt when borrowers experience a total and permanent disability. Borrowers who work in public service for ten years can also receive a loan discharge.

In each of these circumstances, Congress created a specific provision for loan cancelation, and required borrowers to meet certain conditions before receiving forgiveness. If the Secretary really had the broad authority to cancel student loans whenever he saw fit, Congress wouldn’t need to create specific programs such as Public Service Loan Forgiveness. The very existence of those programs proves the limits of the executive branch’s authority.....

The debate over whether the President Biden can cancel student debt with the flick of his pen is a distraction. He can’t, but there are better solutions on the table. Congress and the Department of Education should work together to put them into practice.

[global1]

6. Biden Should Forgive All Student Debt....

The money that those in debt would use to pay down their loans - would now all go into the economy and provide a great stimulus. These former students have been sacrificing their everyday lives because they can't afford to get married; by a house; furnish a house; buy a car; have kids; etc.

With not being saddled with a debt that they'll probably never be able to pay off because of compounding of loan interest - that money would go into the economy.

Everyone would be able to breathe easier.

Do it Joe!!!

[tirebiter]

7. Can you follow a conversation?

[appalachiablue]

9. Whatever it is you want to discuss, make a note. If I'm around

I'll reply but if not, others may respond.

[dugog55]

8. I have posted about this before, my son had a student loan debt of $140K @7.5% interest

for Veterinary School. He graduated in 2009, just in time to be able not to get a job anywhere because of the Bush Recession. Five years later after working as a part-time Vet and other jobs his debt was almost $200K. He was and still is on an Income Based Repayment plan, known as IBR or in debt forever plan. In 2014 I paid down $50K with a second mortgage loan to keep it from getting completely out of control. He now owes $85K in interest and still the $140 in student loans.

I think for student loans, any accrued interest should be forgiven entirely, part of the loan should be forgiven, and the rest of the loan refinanced at 2% with a generous loan length. The lending companies get money from the Fed for less than 1%, .75%, then loan it out at up to 8%. That is criminal. It is not uncommon for Vet students, I use them as an example because they do not make the big money medical doctors or lawyers make, because some of them now owe $300K to $600K for their loans. With that much debt they have trouble getting apartments, home loans, and borrowing money for just about anything else. They are living in a modern day debtors prison.

This whole system of college costs and repayments needs to be seriously looked at so any young adult can go to college if they want, without worrying about crippling debt.