The Federal Government Owns 92% of Student Debt. Will Biden Wipe It Out?
- Total Posts: 9,978
Washington is abuzz with ideas for actions the Biden-Harris administration could take that would not require Congressional approval. One of the buzziest: cancellation of student debts owed to the federal government.
The U.S. Department of Education owns about 92 percent of the $1.6 trillion in U.S. student loans and many legal scholars say the Department has the authority to wipe these burdens away with the stroke of a pen.
“This is the single most effective executive action available to provide massive consumer-driven stimulus,” Senator Elizabeth Warren wrote in a Washington Post op-ed.
Back in September, Warren joined with Senate Democratic Leader Chuck Schumer to call on the next president to cancel up to $50,000 in federal student debt for every borrower in the United States. That would eliminate loan obligations for more than three-quarters of the approximately 44 million Americans with student debts.
Jesus: Hey, Dad? God: Yes, Son? Jesus: Western civilization followed me home. Can I keep it? God: Certainly not! And put it down this minute--you don't know where it's been! Tom Robbins in Another Roadside Attraction
November 17, 2020 at 11:43 AM #378862Ohio BarbarianModerator
- Total Posts: 21,763
Yes, it would help millions, but would do nothing to make public colleges tuition-free, now would it? So we’d be right back to where we were in just a few years.
Not only that, but think of the resentment of millions more people who decided not to go to college because they didn’t want to get buried under a mountain of debt, many of whom are struggling to keep their heads above water. If the Democrats just cancel student debt and do nothing else–no UBI, no free college, no public banking, no lots of other things–the electoral consequences will be…I’ll just say severe.
It is better to vote for what you want and not get it than to vote for what you don't want and get it.--Eugene Debs
You can jail a revolutionary, but you can't jail the revolution.--Fred Hampton
November 17, 2020 at 12:10 PM #378864djean111Participant
- Total Posts: 6,440
Without free college, for a start. Actually, all the things #ohiobarbarian listed.
Same for the mortgage crisis – yes, Obama just basically paid off the mortgages involved, but the mortgage-holders still owed the money. Fair way to have handled that, and would have been a boon to the economy, would have been to pay off the mortgages involved AND paid off at least a great chunk of all residential mortgages. A set lump sum or something. Because paying off a mortgage does not just erase a debt, it is the gift of equity. That is quite different than paying off a student loan. If someone owes $100,000 and $100,000 is paid off, the person can now turn around and make another $100,000 by selling the house.
And we need a UBI. The economy would soar. But the rich get richer no matter if the economy is in the toilet, and get subsidized if they incur losses, so looks like that is the bipartisan consensus – no UBI.
America is not a country, it's just a business. (Brad Pitt, Killing Them Softly)
Everything I post is just my opinion, and, honestly, I would love to be wrong.
November 17, 2020 at 2:33 PM #378913
- You must be logged in to reply to this topic.