Biden Urged to Forgive Student Loan Debt

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Biden Urged to Forgive Student Loan Debt

When they ran for president, Senators Bernie Sanders and Elizabeth Warren make forgiving student loan debt a major piece of their campaign platforms. Now they, along with other members of the progressive wing of the Democratic Party, are urging Joe Biden to cancel student debt once he becomes president.

 

Under Warren's plan, the president would immediately begin canceling up to $50,000 in debt for 42 million Americans. This would cover about 95% of those who have borrowed money from the federal government. Others have suggested other ideas, such as focusing on borrowers who have incomes under $100,000. 

 

While student loan debt forgiveness is not a new idea, those supporting it now argue that it would help stimulate the economy. They contend that borrowers would see an immediate economic boost from seeing their debt wiped away. Historically, debt forgiveness proponents argue that student loan debt is crushing middle class families and holding them back from achieving the American Dream.

 

Critics say these views are wrong. They note that any student loan debt plan will be an expensive taxpayer giveaway to people who can afford to pay the money they borrowed, since they have an education that should lead to higher-paid work. They point out that people with higher incomes will benefit far more than those with lower incomes. In addition, they dismiss the economic stimulus arguments, contending that this idea would be one of the least efficient ways to provide more money to the economy.

 

Sen. Warren has promoted the idea that the Secretary of Education can unilaterally forgive student loan debt. Others disagree, saying that such a move requires an act of Congress. 

 

Do you support the federal government forgiving student loan debt?

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