Student loan repayments are set to restart on Feb. 1. Democrats are warning of the consequences of that, saying “student debt is policy violence.”
Summary
The White House is set to resume student loan payments for federal student loans on Feb. 1 despite pushback from democratic interest groups to continue the pandemic-driven forbearance.
- Massachusetts Sen. Elizabeth Warren is warning the impact it will have on borrowers’ finances while the Biden administration maintains its ability to unilaterally cancel student loan debt only extends to limited circumstances, such as those with permanent disability or whose schools are no longer operating.
- The issue of canceling student loan debt is worrying Democratic officials who argue the Biden administration’s unwillingness to cancel debt is breaking a campaign promise.
- The Biden administration has made changes to the Public Service Loan Forgiveness program and is mulling over further changes.
- For new borrowers, their student loan debt will be impacted by predicted interest rate hikes by the Federal Reserve next year.
- Newsweek reported on a “heavily redacted” Dept. of Education memo obtained via the Freedom of Information Act on the agency’s ability to further extend the student loan repayment moratorium, noting the wave of Democratic politicians pushing Biden to take action the President (and Speaker Pelosi) believe he doesn’t have.
- MSNBC’s Hayes Brown lamented Biden’s inaction, though admitted he has yet to break any campaign promises because Biden pledged to sign legislation that forgives $10,000 in loans, but argues people don’t care about “process arguments” and just want the government to get it done.
- NBC News highlighted the impact student loan debt has on Latino graduates and students, saying “sometimes the lack of knowledge about loans” affects borrowers after graduation.
- Libertarian magazine Reason blasted the American Civil Liberties Union for their push to “cancel up to $50,000 in student debt per borrower”, saying the ACLU is straying far from its mission statement when it argues student loan debt is “a direct result of systemic racism.”
- The Blaze zeroed in on comments made by Massachusetts Rep. Ayanna Pressley who said “student debt is policy violence”, as well as the criticism Pressley faced on Twitter for such a ridiculous statement.
- Townhall reported on remarks from Squad leader Rep. Alexandria Ocasio-Cortez who argued Democrats cannot win the 2022 midterms if they do not cancel student loan debt.
Author’s Take
So far, Biden is actually doing the right thing. He has admitted he does not have the authority to unilaterally cancel any amount of student debt and is waiting for Congress to pass legislation he can sign. Of course, that has not stopped him from attempting to implement policies he said he does not have the authority in the past.
With the Feb. 1 deadline, it remains to be seen if the Biden administration will attempt a last-minute Hail Mary on the issue.
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© Dallas Gerber, 2021
