Student Loan Cancellation Sets Up Clash Between Biden and the Left

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steross

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https://www.nytimes.com/2020/12/10/...6RNF9nbIU71Sl6o2CETr7OLgcnSEe6oaMW6OWvXazYR9M

Democratic leaders are pressing the president-elect to cancel $50,000 in debt per student borrower by fast executive action, but he wants Congress to pass more modest relief.

By Erica L. Green, Luke Broadwater and Stacy Cowley
Dec. 10, 2020
WASHINGTON — President-elect Joseph R. Biden Jr. is facing pressure from congressional Democrats to cancel student loan debt on a vast scale, quickly and by executive action, a campaign that will be one of the first tests of his relationship with the liberal wing of his party.

Mr. Biden has endorsed canceling $10,000 in federal student debt per borrower through legislation, and insisted that chipping away at the $1.7 trillion in loan debt held by more than 43 million borrowers is integral to his economic plan. But Democratic leaders, backed by the party’s left flank, are pressing for up to $50,000 of debt relief per borrower, executed on Day 1 of his presidency.

More than 200 organizations — including the American Federation of Teachers, the N.A.A.C.P. and others that were integral to his campaign — have joined the push.

The Education Department is effectively the country’s largest consumer bank and the primary lender, since 2010, for higher education. It owns student loans totaling $1.4 trillion, so forgiveness of some of that debt would be a rapid injection of cash into the pockets of many people suffering from the economic effects of the pandemic.

“There are a lot of people who came out to vote in this election who frankly did it as their last shot at seeing whether the government can really work for them,” said Representative Pramila Jayapal, Democrat of Washington and the chairwoman of the Congressional Progressive Caucus. “If we don’t deliver quick relief, it’s going to be very difficult to get them back.”

Many economists, including liberals, say higher education debt forgiveness is an inefficient way to help struggling Americans who face foreclosure, evictions and hunger. The working poor largely are not college graduates — more than 70 percent of currently unemployed workers do not have a bachelor’s degree, and 43 percent did not attend college at all, according to a report by the Committee for a Responsible Federal Budget.

While many Black students would benefit greatly from even modest loan forgiveness, debt relief overall would disproportionately benefit middle- to upper-class college graduates of all colors and ethnicities, especially those who attended elite and expensive institutions, and people with lucrative professional credentials like law and medical degrees.
 
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However you feel about this issue, I certainly agree with Joe that is should be done through legislation instead of EO. I get the frustration with congress, but we need to get back to doing things the right way so they'll have some legitimacy past the next election cycle.
 
Jun 20, 2012
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Every single Doc and nurse out there dealing with COVID should have some of their debt forgiven. Maybe swap tax exemptions from churches that are still having mass gatherings to them. I’m definitely for student debt forgiveness instead of corporate CEO bailouts.
 

oks10

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Every single Doc and nurse out there dealing with COVID should have some of their debt forgiven. Maybe swap tax exemptions from churches that are still having mass gatherings to them. I’m definitely for student debt forgiveness instead of corporate CEO bailouts.
If anyone deserves getting at least some of their student loan debt cancelled, it's them. 100% in agreement there.
 

steross

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If anyone deserves getting at least some of their student loan debt cancelled, it's them. 100% in agreement there.
Docs are being offered rates of payment far less than I was offered when I was picking up moonlighting shift while I was in the Air Force in 1998. Seriously, our pay has dropped that much while the cost of healthcare has increased 115%. Private equity and/or big hospital companies have taken the increase in payment away from most docs. I know docs are still paid well relative to many jobs but between the corporate takeover of medical practice and the encroachment of nurse practitioners, it is just not a good place to be right now.

Loan repayment would be a nice token but I am so glad I am near the end of my EM career and not at the beginning.
 
Aug 16, 2012
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Unpopular opinion, but nobody made anyone take out a loan. If you did not vet your current financial situation or bother to look into how you would pay it back, why should everyone else bail you out? It has taken me 27 years to pay off my loans, down to under $2k now. Dozens of programs out there where you can pay a very nominal amount each month while you are younger with them gradually escalating over time. Would not even venture to guess my actual payments as there have been forbearances across many years until I got my license, a banko and a couple unemployment stints when I was younger, and now Covid. Figured out a way to (almost) do it and it really chaps me when I see someone living beyond their means who wants me to bail them out.
 
Aug 16, 2012
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Every single Doc and nurse out there dealing with COVID should have some of their debt forgiven. Maybe swap tax exemptions from churches that are still having mass gatherings to them. I’m definitely for student debt forgiveness instead of corporate CEO bailouts.
Why?
 
Oct 30, 2007
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Power of the purse rests with Congress. If Biden attempts to forgive student loan debt through EO, it will likely be thrown out by the SCOTUS.

I'm all for lowering interest rates and finding other ways to help people pay off their student loan debt, but our federal government is in no shape to forgive anything. They also shouldn't be printing money and bailing out corporations unless they have to pay every dime back with interest.

We'll pay the piper eventually if we continue to act fiscally irresponsibly. Just look at what's happened in Venezuela where it costs $145K to buy a Big Mac at McDonalds.
 

Rack

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College cost are too expensive and the ease of students to take out debt on future earnings is a huge reason for that. The philosophical argument I'm making is that we should NEVER have allowed colleges to perpetuate this scam on the students of our great nation. Now we are in a place where we have to think of forgiveness because it became so common place to take out loans to get a degree. Now, I understand that some degrees are worth the cost and a little debt, but they are few and far between. Just a sad system set up to pander to those with debt and enrich the universities all on the backs of the rest of us out of debt tax payers.
 

Rack

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Unpopular opinion, but nobody made anyone take out a loan. If you did not vet your current financial situation or bother to look into how you would pay it back, why should everyone else bail you out? It has taken me 27 years to pay off my loans, down to under $2k now. Dozens of programs out there where you can pay a very nominal amount each month while you are younger with them gradually escalating over time. Would not even venture to guess my actual payments as there have been forbearances across many years until I got my license, a banko and a couple unemployment stints when I was younger, and now Covid. Figured out a way to (almost) do it and it really chaps me when I see someone living beyond their means who wants me to bail them out.
I just have to re-post this brilliance that is MISSING from our society these days. IF you take out a loan you took a risk on yourself...that's fine, but you need to repay that loan...just as the rest of us do for a home purchase, investment, or a business. It's the same thing and politicians pandering to people with carrots like this don't fix the problem of easy debt given to students without firm foundations to pay them back in the future.
 
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Oct 30, 2007
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College cost are too expensive and the ease of students to take out debt on future earnings is a huge reason for that. The philosophical argument I'm making is that we should NEVER have allowed colleges to perpetuate this scam on the students of our great nation. Now we are in a place where we have to think of forgiveness because it became so common place to take out loans to get a degree. Now, I understand that some degrees are worth the cost and a little debt, but they are few and far between. Just a sad system set up to pander to those with debt and enrich the universities all on the backs of the rest of us out of debt tax payers.
What really needs to happen is the federal government needs to get out of the student loan business. A lot of the problems will correct themselves whenever financial institutions and schools are responsible for the debt.
 

Rack

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Is the work any different then what a soldier in uniform does in combat and they get good veterans benefits
I'm sorry, but Soldiers don't drive to the battle field in their Tesla's....

I'm all for forgiveness to those who cannot pay back, but we aren't talking about the same demographic...Plus those who are doing well aren't the ones in need of debt forgiveness. Heck they aren't even asking for that.

I'm all for rewarding folks who need and don't have the ability to pay it back, and those who sacrifice for the people, but I'm pretty sure your comparison isn't apples to apples. RN's and lower are a different issue and I could get on board with programs for them or others not taking extremely high pay already.
 

snuffy

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I'm sorry, but Soldiers don't drive to the battle field in their Tesla's....I'm all for forgiveness to those who cannot pay back, but we aren't talking about the same demographic...Plus those who are doing well aren't the ones in need of debt forgiveness. Heck they aren't even asking for that. I'm all for rewarding folks who need and don't have the ability to pay it back, and those who sacrifice for the people, but I'm pretty sure your comparison isn't apples to apples. RN's and lower are a different issue and I could get on board with programs for them or others not taking high pay already.
Under normal circumstances maybe, but the last year has been anything but normal. And this does not factor in how parts of the public are acting and adding to the problem.
 

Rack

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Under normal circumstances maybe, but the last year has been anything but normal. And this does not factor in how parts of the public are acting and adding to the problem.
What's next, ethics Police? I work at a health care system, I've not missed a single day...grated I'm not a front line Covid ward employee but I am responsible for the mask/temp station. Certainly nurses and doctors have made sacrifices and many of those deserve that sort of reward, but I'm not sure that's equitable across the board without some sort of preference given to those with actual need like lower pay scale employees in healthcare...MOST doctors should not be in a boat that they need their college debt forgiven...I'd be for some sort of long term medical insurance that is guaranteed for them like the military gets as a reward or something like that. That would be a nice reward.
 
Aug 16, 2012
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Is the work any different then what a soldier in uniform does in combat and they get good veterans benefits
Here is the difference.
A young person walks into the recruiting office, finds out what the job entails, what he will get paid and what the benefits are. At that point, they evaluate the pros and cons and if they are interested, they sign up.

Meanwhile, a doctor, nurse, whomever, goes to a career counselor or something inside them tells them they want to be in the healthcare profession. They evaluate the pros and cons and if they like what they see, they sign up.

Wait. That is the same situation. The jobs are different, but damnit, if someone does not like what their career offers, why did they sign up?

All careers are not equal.

Some have benefits, some do not. I have run my own company for 15 years now. I make 3x what I did when I worked for someone else doing the same thing. I make my own hours, they punch a clock. But in return, my small business benefits suck, vacation is just a song by a bubblegum band and sick leave? Never heard of it. I chose my hours and higher pay over benefits. I am fine with that and do not expect anyone to give me a nickel that I have not earned to make something easier on me.

Sometimes jobs are more difficult. Think the truck driver makes any more per load in the Minnesota January as he does in August? Extremely dangerous in January but they make the same. And they know the pay will be the same.

Does the construction worker building a house make more when they are framing the fourth story roof than when they are framing the first floor walls? Nope.

Do fire fighters make more when they are on a call as opposed to when they are at the house cleaning their rigs or at a site training? Nope.

If you start with medical care professionals because they save lives, are you going to write off the loans of every researcher/scientist associated with developing the new drugs? They have been working overtime trying to save lives. The line worker who will be working doubles while his employer manufactures the drug that will save lives? The truck drivers and warehouse workers that are part of the logistic chain needed to deliver the new drugs that will be working 24/7 to get everything where it needs to be? You could go all the way down the supply chain to the guy who cut down the tree to make the packaging if you really wanted to get into it. They will all be contributing to saving thousands upon thousands of lives and working their asses off to do it.
 
Aug 16, 2012
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#19
Power of the purse rests with Congress. If Biden attempts to forgive student loan debt through EO, it will likely be thrown out by the SCOTUS.

I'm all for lowering interest rates and finding other ways to help people pay off their student loan debt, but our federal government is in no shape to forgive anything. They also shouldn't be printing money and bailing out corporations unless they have to pay every dime back with interest.

We'll pay the piper eventually if we continue to act fiscally irresponsibly. Just look at what's happened in Venezuela where it costs $145K to buy a Big Mac at McDonalds.
Assuming you have the currency that is actually being accepted that week.
 

CocoCincinnati

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#20
So the same members of Congress who kept saying Trump was a constitutional crisis are suggesting president elect Biden do unconstitutional things the minute he steps into office. Freaking Hypocrites.