Another Biden promise broken
"The never-ending moratorium on student debt payments is the [Biden] administration's attempt at squaring the circle: It takes the place of forgiveness, attempting to appease the far left-wing of the party, without incurring the political costs that outright forgiveness would incur. The cost to taxpayers, however, is still accruing. Ironically, 'lunch-bucket Joe' is effectively taxing welders, crane operators and assembly line workers to subsidize people who will likely have higher lifetime earnings, a clear violation of Mr. Biden's campaign promise of not raising taxes on people earning less than $400,000 annually. Like the previous pledge not to extend the moratorium, it is a case of promises made, promises broken."
EJ Antoni, research fellow for regional economics
Senate Majority Leader Chuck Schumer, a big advocate of student loan forgiveness, claims President Joe Biden is closer "than ever before" to deciding unilaterally that it's time to forgive federal student loans.
"I have talked personally to the president on this issue a whole bunch of times," Schumer stated in the State of Student Debt Summit on April 13. "I have told him that this is more important than just about anything else that he can do on his own."
For now, the DOE has extended the pause on student loan payments through August and will move millions of borrowers out of default and mark their accounts as current.
According to Schumer, the average student owes a monthly payment of about $400. "How does anybody live, knowing every month, I got to pay this $400?" Schumer argued. "So, the pause has stopped that, but make no mistake about it: this pause isn't going to stay forever, and the canceling of student debt is the way to go."
Jonathan Butcher of The Heritage Foundation explains students from higher income families are likely to benefit the most, should Biden make the move.
"They're the ones who have much larger, more sizeable loans," Butcher explains. "And so, you are essentially redirecting the money from taxpayers to pay for these students from wealthier families."
Regardless of government policy, Butcher states the U.S. Department of Education is already devising ways college students can evade their debt.
"So even if it actually doesn't become policy," Butcher continues, "the agency is looking for ways and finding ways to exclude students from having to pay back their loans."
The Hill reports that Biden has indicated he's willing to cancel up to $10,000 in student debt per borrower but prefers Congress to pass legislation to do so, which he would then sign.
Editor's note: Sidebar added after story was originally posted.