Thursday, December 3, 2020

Biden May Use Executive Action To Relieve Student Debt — Here’s What Experts Say Would Happen; Don't Cancel Student Debt; Teach Students and Graduates to Make Better Decisions

Photo by Stefani Reynolds/Getty Images
Joe Biden May Use Executive Action To Relieve Student Debt — Here’s What Experts Say Would Happen:
President-elect Joe Biden, who promised to relieve some student loan debt on the campaign trail, is facing growing calls from fellow Democrats and activists to do so via executive order soon after taking office.
Biden’s campaign plan called for the elimination of $10,000 in student loan debt for any American who had it, with further reductions for graduates of public colleges or historically black colleges and universities making less than $125,000 per year, per CNBC.
With Democrats needing to win both runoff elections in Georgia to secure a 50-50 tie in the United States Senate, some within the party have begun advocating for steps Biden might be able to take without the help of congress.
Democratic Senator Elizabeth Warren said in a Washington Post op-ed that the Biden-Harris administration should eliminate billions of dollars in student debt via executive action on day one. She joined Senate Minority Leader Chuck Schumer and 11 other Democrats to introduce a resolution in September calling for the next President to eliminate $50,000 of student debt per borrower with executive action, according to the Wall Street Journal. --->READ MORE HERE
Illustration: Linas Garsys/The WA Times
Don't cancel student debt; teach students and graduates to make better decisions:
This misguided policy would dig the taxpayer a several hundred-billion-dollar hole
Everyday people make big financial decisions. Decisions to buy a car, a house, a college degree. Buying a car often requires an auto loan. If an individual takes an auto loan, he is expected to repay it. If the individual buys a home, and takes a mortgage, he is expected to repay that, too. Credit card debt? Of course, he repays it.
But what about a college education? According to Joe Biden, the same responsibilities do not apply.
Prior to the election, former Vice President Joe Biden planned to forgive $10,000 per federal student loan, reported The Wall Street Journal. His plan would also eliminate the debt held by students attending public colleges, those earning under $125,000, and those who “show they were defrauded by for-profit colleges,” according to Josh Mitchell with The WSJ.
In a recent interview with Anand Giridharadas, Sen. Chuck Schumer of New York Democrat, alluded to a more ambitious solution to the student debt problem. Joining with Sen. Elizabeth Warren of Masschusetts, the two top Democrats are proposing that President-elect Biden cancel $50,000 per borrower with an executive order during his first 100 days. --->READ MORE HERE
Follow link below to a related story:

Canceling Student Debt Would Be a ‘Brahmin Bailout’

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