"Like the “welfare queen,” the lazy, profligate and irresponsible student loan borrower of Republican rhetoric is a myth. And the point of the myth, as I said earlier, is to spread cultural resentment. The fact of the matter is the Republican Party does not have anything to offer the millions of working- and middle-class Americans who labor under the burden of student debt." - Jamelle Bouie, NY Times, 'Republicans Would Like To Offer You Some Resentment'
Polls circulated as recently as last month showed significant numbers of young voters disaffected with Joe Biden and unlikely to be motivated to vote in the midterms. This is no longer on, in any dimension of reason, given President Biden came through on Wednesday, announcing an executive action that will help up to 23 million college students reclaim their lives from ginormous student debt. A lot of that is from negative amortization, whereby the unpaid interest on loans is added to the balance of unpaid principal. The condition over time becomes one of the classic "losing wicket" where the debtor finds it damned near impossible to catch up and ends up deeper and deeper in debt. That change alone has the reactionary Right screeching like stuck pigs, as we knew they would.
The Wall Street Journal editors are already bellowing about a "coup" for example, e.g.
Biden’s Half-Trillion-Dollar Student-Loan Executive Coup
The President who never says no to the left did their bidding again with this act of executive law-making, er, breaking. The government will cancel $10,000 for borrowers making less than $125,000 a year and $20,000 for those who received Pell grants. The Administration estimates that about 27 million will be eligible for up to $20,000 in forgiveness, and some 20 million will see their balances erased.
But there’s much more. Mr. Biden is also extending loan forbearance for another four months even as unemployment among college grads is at a near record low 2%.
But pause and catch your collective breath which the WSJ editors have not. While they bark and snark about "an abuse of power that favors college grads at the expense of plumbers and FedEx drivers", that is pure political gamesmanship and wordplay. This as described by student debt expert Tressie McMillan Cottom - featured as a guest on ALL In last night. As she put it, all this knee-jerk class war bluster is totally disingenuous. It is actually the sons and daughter of plumbers and FedEx drivers who need the debt relief the most. The wealthy don't need it since they don't need loans. And those that do, in some way, make use of loans, do it for tax write off purposes - according to Ms. Cottom.
The reactionaries like the WSJ of course will yelp because those lower on the wealth totem pole are getting a small leg up to help them. Which the rich and powerful do not want. They'd prefer to make that $500 billion package part of another tax cut if they get back into political power - which Biden and other Dems recognize cannot be allowed to happen. Why? For starters they will have their knives out to cut not only Social Security but Medicare if they snatch the House . And you can bet your sweet bippy they will try to undo Biden's executive order on student loan relief too. Hell, in the WSJ editorial piece they even waved the threat openly e.g.
'The Supreme Court recently underscored in West Virginia v. EPA that Congress must provide clear authorization to agencies taking action on major questions. Canceling so much debt is beyond major to a mega-ultra-super question."
Students who are the beneficiaries of this Biden loan relief ought not take the threat lightly, nor should they (stupidly) look down on "only $10,000 relief". (Never ever look a gift horse in the mouth anyway!)
Because mark me if the Reepos take the House back it will be zero relief and likely no generous terms for repayment. As the WSJ editors noted: "Congress authorized none of Mr. Biden’s loan relief and appropriated no funds for it."
That "congress", btw, refers to Reeps in the Senate. But a Repuke takeover of the House - even if they don't get the Senate - will send student loan debtors on an even more perilous downward financial path, via GOP use of the SC decision. The WSJ editors are correct about one thing when they write:
"With the cancellation precedent, progressives will return to this vote-buying exercise every election year. The only antidote will be if Democrats conclude this gambit boomeranged politically by mobilizing an opposition coalition of Americans who are tired of being played for saps by progressives. The test arrives in November."
But that merely highlights the real question: How long will Americans tolerate being played for saps by the wealthiest 0.1%? If they vote Reep in November it will establish 'sap-dom' and on 'steroids' - because the financial hits will now keep coming for years, given how the GOP has rigged voting and amped up voter suppression in so many states. Look not only for student debt benefits to be erased based on the WVa vs. EPA SC decision and a GOP House (in between its bogus investigations of Fauci, Biden and the January 6th Committee) but also a new round of trillion dollar tax cuts.
Yes, the "test" is indeed in November, and if students (and former students, new grads) care as much about their futures as they proclaim, they had better pass that test . Meaning the biggest youth voter turnout ever and not succumbing to any GOP 'rope a dope' nonsense or memes.
— from The New Civil Rights Movement
President Joe Biden Wednesday afternoon announced his plan to forgive $10,000 in student loan debt for people making under $125,000, $20,000 for Pell Grant recipients, and extend the current pause on repayments through the end of the year.
As the President made his remarks, anticipating the GOP’s impending attacks, he explained that his plan to cancel debt is designed to help Americans across many parts of their lives.
“A lot of folks are putting off starting families because of the cost” of student loans, the President said, explaining this will give them a “fresh start.”
He also announced he is fixing the public service loan forgiveness program to will allow Americans who become first responders, teachers, and other public servants to have their loans forgiven.
President Joe Biden just made good on his campaign promise to forgive billions in student debt. Republicans, predictably, have gone nuts.
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