Earlier this month, Joe Biden threw a bone to his base when he announced a new program to “forgive” student loan debts and pass the bill onto everyday taxpayers.
The program waives $10,000 to $20,000 of student debt per individual who earns under $125,000 per year. Only individuals who received Pell Grants to attend college will be eligible for the $20,000 in loan forgiveness.
According to the White House, this agenda will provide relief to everyday Americans who are struggling with student loans. However, the alleged relief may vanish for those individuals living in any of the 13 states that tax forgiven debts.
Despite the rhetoric from Biden and his aides, questions about the president’s potential conflict of interest in the higher education department have now come up.
An Underlying Motivation Behind Biden’s Student Loan Forgiveness Program
When the president waived student loan debt for tens of millions of Americans, he failed to address the root cause of such expensive prices in higher education. Both Republicans and even some Democrats have acknowledged this.
Because Biden didn’t address these costs and just waived a percentage of existing student loans, higher education institutions are now encouraged to increase, not lower, their future prices.
This could lead to even more rounds of debt forgiveness, which would ultimately increase the capital within the nation’s higher education system.
This is the reality of Joe Biden’s student loan bailout. pic.twitter.com/Q0PwqBnWpw
— RNC Research (@RNCResearch) August 29, 2022
According to government data tracker OpenSecrets, Biden’s 2020 presidential campaign received more than $64 million from the higher education industry. This is much more money than other Democrats even received.
In light of this, critics of the current administration are questioning whether this student loan forgiveness program is truly about Biden helping Americans or pleasing left-wing lobbyists.
Had Biden worked with Congress to pass his student loan forgiveness program, the underlying factors behind student loan debt might have been addressed. The president’s recent executive order only means the cycle is bound to repeat itself sooner or later.
Another Bill For Everyday Americans
Whether Biden’s executive order is designed to score points with his base or please his donors, everyday Americans are still the ones getting the short end of the stick.
13% of Americans are eligible for Joe Biden's student loan bailout.
The remaining 87% will get a $2,503.22 bill.
— Lance Gooden (@Lancegooden) August 30, 2022
The White House has not explained how it expects people to take on student loans from bills that other borrowers ran up, especially amid the ongoing inflation and recession crises.