Sunday, May 1, 2022

America Isn’t Responsible For My Student Loans. I Am; Biden's student debt cancellation plans: Who benefits and who is burdened?; Full Cancellation of All Student Loan Debt Would Cost $1.6 Trillion

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America Isn’t Responsible For My Student Loans. I Am:
When I agreed to take out student loans for college, I did so with the understanding that they were my responsibility to pay back, and no one else’s.
In the latest move of his disastrous presidency, U.S. President Joe Biden announced on Thursday plans to waive a significant portion of federal student loans for borrowers, telling reporters during a White House event that he is “considering dealing with some debt reduction.”
“I am not considering $50,000 debt reduction, but I’m in the process of taking a hard look at whether or not there will be additional debt forgiveness, and I’ll have an answer on that in the next couple of weeks,” he said.
The statement came in response to a question about comments from Democrat Senate Majority Leader Chuck Schumer, who on Wednesday claimed the president was looking at using executive action to “cancel” up to $50,000 for borrowers.
While many of my fellow Gen Zers may think that “canceling” student debt is the greatest thing since sliced bread, it would behoove them to know that such a policy doesn’t exist. When Democrats like Biden and Schumer say they wish to cancel or forgive federal student loan debt, what they really mean is that they want to transfer the responsibility of paying back such loans from individuals who chose to attend college to those who didn’t or those who responsibly paid off their own expenses. --->READ MORE HERE
Biden's student debt cancellation plans: Who benefits and who is burdened?
President Joe Biden’s student debt cancellation plan could end up providing millions of people with relief from monthly payments and be a vote winner ahead of the midterm elections — but it could also offer benefits disproportionately to those who are better off.
Biden said Thursday that he wasn’t considering canceling as much as $50,000 worth of debt per borrower — which would be a significant sum, well beyond what he campaigned on doing — although he said little else about the shape his student debt plan will take.
White House press secretary Jen Psaki similarly offered few details Thursday when pressed about Biden’s forthcoming plan.
How Biden decides to structure the debt forgiveness is especially important in determining the policy's winners and losers.
Biden’s aides are reportedly considering ways to narrow the loan forgiveness effort, such as by imposing income limits on who can get their debts dismissed.
A general student debt forgiveness effort, however, could generate winners and losers that don’t necessarily align with the Democratic rationale for scrapping student debt. --->READ MORE HERE
Follow links below to relevant/related stories:

+++++Analysis: Full Cancellation of All Student Loan Debt Would Cost $1.6 Trillion+++++

White House shrugs off student debt cancellation inflation concerns

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