The White House announced that the president will cancel $3.9 billion in student loans, freeing up funds for those who attended ITT Technical Institute to be refunded by Americans creditors.
Democrat’s student Loan forgiveness is finally coming to fruition and this time in a big way
The Western Journal Reports, President Joe Biden is set to cancel $3.9 billion in student loans, announcing that the federal government will discharge all remaining federal student loans for students who attended the ITT Technical Institute.
The student loan borrowers who attended the now-defunct institute will receive a discharge through “borrower defense to repayment” according to Forbes and do not need to apply to have their loans canceled.
Secretary of Education Dr. Miguel Cardona said, “It is time for student borrowers to stop shouldering the burden from ITT’s years of lies and false promises. The evidence shows that for years, ITT’s leaders intentionally misled students about the quality of their programs in order to profit off federal student loan programs, with no regard for the hardship this would cause,” AOC spoke about this issue on the house floor recently,
The ITT Technical Institute was a well-known private technical institute based in Indiana with approximately 140 satellite campuses all over the United States. The institute operated until announcing on Sept. 6, 2016, that it would “discontinue academic operations at all of its ITT Technical Institutes permanently”.
Since taking the White House in 2021 Biden has canceled almost $32 billion in student loans, essentially subsidizing the educational expenses of a combined 1.8 million borrowers spread across “borrower defense to student loan repayment and school closures,” “public service loan forgiveness” and “total or permanent disability”.
Democrats continue to call for Biden to “#CancelStudentDebt“, a move that conservatives believe would obfuscate the transfer of debt from the individual borrowers to the American taxpayer.
Democratic Rep. Pramila Jaypal of Washington urged Biden to cancel all student debt
Student loan payments are set to resume in 16 days. With the stroke of a pen, @POTUS can bring relief to millions of people across the country. Let’s get it done.— Rep. Pramila Jayapal (@RepJayapal) August 15, 2022
Representative Cori Bush of Missouri also joined the refrain saying “Right now, millions of people are living in limbo, unsure if student loan payments will resume in 16 days. Canceling student debt would provide immense relief to numerous borrowers.”
Right now, millions of people are living in limbo, unsure if student loan payments will resume in 16 days. Canceling student debt would provide immense relief to numerous borrowers.@POTUS, now is the time. #CancelStudentDebt— Congresswoman Cori Bush (@RepCori) August 15, 2022
Conversely, Republicans have heavily criticized student loan forgiveness. In an Op-Ed for Fox News, Foxx and Sen. Richard Burr, also of North Carolina, wrote, “By caving to progressives, President Biden is breaking his promise to over 100 million taxpayers without student debt who are subsidizing this boondoggle.”
According to Fox News, The Biden administration is trying once again to save its tanking poll numbers by writing a blank check to student loan borrowers using Americans’ pocketbooks.
Nearly every pandemic relief program has expired as the economy, which the president repeatedly touts as growing at the fastest pace in four decades, recovers and COVID restrictions move further into the rearview mirror.
Americans are finally returning to their everyday lives, balancing the responsibilities of work and family. Yet, according to the president and Democrats in Congress, it is essential that taxpayers continue to fund the largest and most regressive transfer of wealth to the upper-class in modern history, to the tune of $5 billion every month.
Since March 2020, no federal student loan borrower, regardless of income or ability to work, has been required to make a student loan payment – not a single penny in two years.
These deferments were intended to be a safety net at the height of the pandemic. Two years later, the deferments have turned into a $150 billion spending spree predominately benefiting lawyers, doctors, and bankers who racked up their debt in graduate school.
Now, facing a stalled legislative agenda and an inflation crisis exacerbated by his administration’s disastrous policies, President Biden is doing what’s politically expedient and extending, for a second time, the “final extension” of the repayment pause and proposing to cancel tens of thousands of student loans for 44 million borrowers.
By caving to progressives, he is breaking his promise to over 100 million taxpayers without student debt who are subsidizing this boondoggle. President Biden is grasping at straws and putting politics over responsible policy.
The administration justifies this elitist handout arguing that borrowers are simply not ready to pay their monthly bills. And progressives back this flawed argument by citing absurdly biased polling data from a group whose mission statement is to cancel student debt while ignoring the data that further relief is unwarranted – such as the 2.9 percent unemployment rate of college graduates and the less than 1 percent of private borrowers needing emergency relief.
The most troubling excuse for mass cancellation and this permanent pandemic pause touted by progressive policymakers is that it mitigates the impact of the resident’s inflation crisis.
Low-income households are hit hardest by inflation and are the least likely to hold a college degree. Economists across the political spectrum agree that the repayment pause has exacerbated inflation
Some think this move by the President will do more harm than good but only time will tell. What do you think?