Forgiving loans

During his campaign, Biden endorsed canceling $10,000 per person of student loan debt. Yet, as soon as he won the election, Biden called on Congress to take up the matter. Zack Friedman writes in an article for Forbes, “Biden is deferring to Congress to pass relevant legislation on student loans, rather than act unilaterally as president.”

At a time when partisan gridlock in Congress has blocked most progressive legislation from even getting a hearing, Biden’s suggestion is naïve at best. Even Trump understood the seriousness of the issue when he used his executive power (for once in a positive manner) to extend until the end of the year student loan payment relief that was included in the CARES Act.

Biden is being flanked to the left by Senate Minority Leader Chuck Schumer as well. Schumer – not known as a champion of progressive causes – has joined forces with Senator Warren to demand that Biden cancel $50,000 per person of student loans through executive action. If Biden is shy about using his executive authority in the wake of the Trump presidency, the nation is in deep trouble.

“This is an opportunity for Joe Biden to have his FDR moment,” said Hounanian. His organization Student Debt Crisis has been working on this issue for years and is part of a large coalition of hundreds of organizations calling on Biden to do the right thing. A petition launched earlier this year to cancel student loans has garnered more than 1.3 million signatures. Advocacy groups are optimistic that this may be the closest they have come in years to realizing their goal of eliminating student loan debt.

And yet the voices of opposition are already pressuring Biden to do the wrong thing. Fox Business in a laughably hypocritical piece claimed that canceling student loan debt was regressive and would disproportionately benefit wealthier Americans. The Heritage Foundation, a right-wing think tank, in a typically patronizing tone claimed that loan forgiveness “rewards fiscal irresponsibility,” failing of course to apply those same standards to tax breaks for wealthy Americans or taxpayer-funded subsidies for corporations. Education Secretary Betsy DeVos called the idea of debt forgiveness an “insidious notion of government gift-giving,” simultaneously refusing to see the economic benefits by her department’s policies to wealthy Americans as “gift-giving.”

DeVos also claimed that forgiving student loans was “unfair” to those who did not go to college or those who managed to pay off their loans. In other words, all should suffer because some suffered. This is the conservative logic gleefully invoked to preserve any unfair status quo that maintains wealth inequality. Imagine applying that logic to, say, the 2017 tax reform bill. Why should corporations and wealthy Americans get tax breaks that their predecessors or earlier counterparts did not obtain?

Excerpted: ‘Why Biden Should Forgive Billions in Student Debt’

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