Staff ReportsThe Biden-Harris administration continues its relentless push for forgiveness of student loans, proposing a new program that could absolve debts for up to 8 million borrowers. This program is aimed at those navigating what they term “financial hardship,” which can include everything from medical bills to childcare costs. The Department of Education seems to think that America’s financial woes can be solved with more government handouts, a belief propagated by this administration.
Secretary of Education Miguel Cardona made it clear that the old system has left borrowers flailing for help as they succumb to “heartbreaking and financially devastating hardships.” One cannot help but wonder why the solution to financial trouble is to simply write off the debts like they never existed, rather than addressing the root causes of the financial struggles. Instead of pushing for responsible lending and reining in public university costs, the administration seems content to wave a magic wand and declare all is well.
Provide hope to millions of Americans?@SecCardona supports transferring debt to Americans that didn't take out loans or paid theirs back.
Biden-Harris Admin Make Yet Another Attempt At Student Loan Cancelation As Election Nears https://t.co/7esxztANFB via @dailycaller
— RDunn (@RayHDunn) October 25, 2024
Under the newly proposed program, there would be flexibility in the debt relief process, initiating two distinctly different pathways for debt cancellation. The first route allows Secretary Cardona to wipe a borrower’s debt clean without an application if there’s an 80% chance they can’t pay within two years. Apparently, a crystal ball is now part of the Education Department tool kit, rendering an actual application unnecessary. The second pathway does still require borrowers to fill out some paperwork, but it feels like a mere formality when they can simply identify “persistent financial burdens.”
Biden’s past efforts in this area have been met with substantial roadblocks, particularly in the legal arena. After the Supreme Court rejected a prior program in 2023 on the grounds that the education secretary may not have had the authority to cancel debts, one might think they would learn from their mistakes. But why take responsibility when there are more loopholes to exploit? The Missouri court recently halted yet another attempt that sought to adjust payments based on income. It appears that legal hurdles are just bumps in the road on this administration’s relentless march toward universal student loan forgiveness.
The most astonishing aspect of this entire saga is how spending over $74 billion on student loans for government workers has not sent alarm bells ringing. The messaging that taxpayers should be the safety net for others’ financial choices continues to gain traction. As this administration forges ahead with its plans, one can only wonder at what point the conversation will shift from blanket forgiveness to advocating for personal responsibility and fiscal prudence. But for now, the refrain of “debt relief” is music to the ears of a growing number of borrowers prepared to let the government take care of their obligations.
