Biden 'has not ruled out' canceling student debt broadly using executive action, the White House says

  1. Side note, I love how it seems like FedLoan has stopped bothering to email me when my loan repayments get pushed back yet again. They're like, godammmit, lol.

  2. 100s of emails a month of "Payments are about to restart! Get excited!" But when they get delayed again not a single email to notify me haha

  3. I had so many calls and emails about the extension ending in January being the last one. I've never missed or been late on a payment so I'm not sure why they spammed me so hard but it made the eventual extensions that much sweeter.

  4. This is what I'm expecting to happen. The report he requested as to his legal authority will come out closer to the mid terms but probably conclude he can only do $10K via EO. He'll do the 10K and say he wants to do more but he legally can't and that he needs congress to send him a bill forgiving more and for that to happen you need to go vote blue. I picture it like the stimulus check issue in the Georgia senate race but on steroids.

  5. Seriously. All my student debt was cancelled 2 years ago when I filed for my permanent and total disability discharge and was approved. Let’s just say it is not an easy process and those who get approved rarely get what I got. I was finishing my doctorate when a rare medical condition completely ruined my body within the span of 3 years. HOWEVER, this discharge did not carry over to to my mum who also had to take out loans for me because we were very poor. She has been paying for years now and has barely paid on the interest. The fact student loan payments have been paused is a life saver to us. She also qualifies for a discharge if she works for the city for another 5 years. But still if the government gave people a clean slate you would see a-lot of R’s turn to D’s for a lot of people come voting time.

  6. Exactly. The voting public have short term memories. He cancels student debt today and in six months people will be whining again about what Biden and the Dems have done for them lately.

  7. Also it's an incredibly complex issue that requires more planning and thinking than just waving a hand to cancel debt. There will be consequences. The economy is an incredibly intricate web that not even top experts have a full grasp of - and random redditors have even less of a grasp.

  8. Tbh this is what I thought when I heard he still hadn't done anything about the debt. It makes sense from a political standpoint to make a move on it at a time where it'll remain in the public memory during voting, rather than do it early and risk it fading before elections.

  9. Courts will immediately halt the student debt cancellation while it's being litigated over constitutionality, Dems will still find excuses to not vote (probably "Biden should've used his bully pulpit to force Congress to do it" while ignoring Congress doesn't have anywhere near enough support for it), and a Republican house majority after the midterms will probably impeach Biden for exceeding his constitutional authority.

  10. I'm wondering if they're holding off because they're partially worried how it would potentially blow back on them. There's a lot of resentment among some lower income/non-white people that, in their perspective, formerly middle class white people are getting bailed out when the low income people never even thought they could afford it. So they don't get why all this money would be handed to them meanwhile they are STRUGGLING.

  11. I’m not against this. But, if the conditions that are causing the problem are not changed then in a generation we’ll be right back here.

  12. Exactly. If it can be coupled with free public college (very unlikely) or even free tuition for community college we'd at least be moving in the right direction. At least New Mexico just decided to go ahead and offer it, and Washington and Tennessee are behind the idea in different ways too

  13. As a former financial aid officer for both public and private colleges, the system is very broken and the underlying issues need to be addressed.

  14. No shit. It pisses me off to no end to hear members of Congress screaming at Biden about this when it's their fucking job to fix the underlying problems and I haven't heard a single peep about that.

  15. Without systemic change I am against it. It is inefficient at economic stimulation. It disproportionately targets the upper middle class while ignoring the lower and working class. And the predicted ripple effects do nothing to help lower and working class people. It's an opioid policy on its own that'll do nothing but placate one class of people temporarily.

  16. That’s the reason this isn’t going to happen, it’s just enough hopeium for the midterms to drive the vote. Forgiving it through EO would go to the courts and they’d rule against it and it’s back to square one . Congress holds the purse strings, they need to enact this and they aren’t even looking at it. The system needs changed at the root, people need to give up this pipe dream that’s it just going to magically be forgiven. It’s absolutely not going to happen, it’s political suicide and the Biden administration know that. Republicans would have a field day, it’s literally handing them a wedge issue.

  17. Then young people need to actually vote. Biden can maybe cancel some debt unilaterally, but he has no authority to fix the entire system by himself, nor does the literal narrowest majority possible in the Senate.

  18. I think it’s pretty clear that the plan is to pause payments until closer to the midterms and then forgive some debt. It makes sense but it sucks that they have to play this game because voters’ memories are so short.

  19. I'm trying to decide if this is the plan or if it is to continue to push off until reelection time and then do it... he HAS to know that the bulk of his voters that have the ability to make or break him are the ones waiting to see what he's going to do with this... at the same time though, get enough new dems in for midterms and then it COULD go through congress which are the ones looking more likely to be willing to offer more than a dismal $10k that helps almost no one.

  20. Even if Congress wiped the slate clean tomorrow, what does that mean for students who take out loans next year? Is there a plan to make this an on-going basis or is this a one-time thing? And how viable is either option?

  21. Even if they somehow gave new students a $10k credit, colleges would just raise their tuition by 10k or however much. That's how they work, colleges are the problem. They'll just continue to raise tuition as much as they think people can bear.

  22. It definitely wouldn't be a viable option to cancel debt more than a small handful of times. Colleges already feel entitled to charge whatever the fuck they want because of the huge amount of loan money students can qualify for, just think of how crazy prices would get if colleges learned the students would never have to pay that money back. Colleges could charge anything and students would happily pay it knowing that ultimately Uncle Sam will pick up the tab.

  23. THIS right here. This question of yours is my whole problem with student load forgiveness. Essentially, this is a 10k stimulus to college kids currently with debt.

  24. I mean Biden doesn’t have the power to fix or overhaul the school system without the senate and the house, it’s likely a “ok I did what I can we need to fix the system now and you have to vote in senators who will let me” type of situation.

  25. Honestly the smart move is to keep kicking it down the road and use it as leverage for the mid terms or reelection. If he cancels it close enough to mid terms it will be fought by the GOP and the GOP will be on record against pretty much everyone with student loans.

  26. And cancelling 10k is also kicking the can down the road. Just a difference of a few years. They need to also address the underlying issues of unreasonable tuition growth and college administration bloat.

  27. If Biden cancels student debt, I'm putting what I would be paying each month toward my retirement. By the time I am old enough, this money would make retirement an actual possibility

  28. And all of that money would go right back into the economy, it’s not like it just vanishes like some republicans seem to think

  29. Since they just announced that there likely won't be social security post 2033, this is even more important for anyone under the age of 40.

  30. It's going to have to be congress. Unless Biden has access to trillions of cash or he just cancels part of student debt.

  31. 10K debt gone is a good chunk, but unless it addresses high interest rates, that 10K amount will be back in 2-3 years due to interest and making minimum payments. There needs to be an overhaul of the interest and take any previously paid interest and apply it to the principal. I’m not the only one who owes more than I started with due to the the interest.

  32. The interest rates are ridiculous on the private loans as well. And the middle class gets screwed. With my case it was projected my parents could pay like 20k towards my education each year which is no where near the case. Had to get a private loan to cover the remaining amount that the government loans couldn’t. With a nice credit score of 750+ (bought a cheap car when I was 18 and paid it off etc so I have good credit for a student my age) and a co-signer I got a nice low rate of 10% that accrues daily. What a joke.

  33. I’m all for reducing interest rate of student loans…as someone that worked hard to prioritize paying off my debts however, I am not a supporter of “wiping student debts”.

  34. He should,at least cancel the interest. That’s what’s killing us. I’m all for giving the government back what they gave me, but, as it stands, I’m going to be giving them almost twice what they gave me, and that’s ridiculous

  35. That's going to be the compromise. No debt relief but they cut interest rates to 1 or 2% or something like that. I doubt it is 0% but who knows.

  36. Personally the perfect solution to me is make 0% interest permanent, which helps future generations as well. For those of us that are currently in repayment they should take interest already paid for the lifetime of the loan and apply it back into the principle.

  37. Both my wife and I have paid off our loans but I'd like to see this go through. What really chaps my ass about the whole thing is that there were people that took jobs working for the government (my brother) and were promised that they would have their loans forgiven if they worked there for 10 years. Well when the time came to pay the piper we found out it was nearly impossible to make the claim due to all this bullshit bureaucratic hogwash. So just cancel them all, it's pretty evident the American people need additional education anyway.

  38. Biden already reworked the rules for PSLF and gave special exemption. Your bother should apply for special forgiveness, but has to get the paperwork in before October.

  39. If your brother still has loans he should try and reapply. Biden signed something in October that seems to have made qualifying for PSLF significantly easier.

  40. I believe the PSLF waiver that’s been made available solves this problem. Payments made while working for eligible programs can be retroactively applied

  41. My debt was “small” (I think it was something like 25k to begin with). I graduated in 2009 and there were no jobs to be found over $10/hr. Lost my apartment. Maxed out credit cards. “Borrowed” money from my dad (who never asked for it back). Defaulted on everything and my brother has to bail me out of Sallie Mae suing me.

  42. this is why we need the system reformed. a teenager is not yet an adult; an 18 year old looks at a 28 year old and thinks they are a fucking ancient cretin. the whole system needs a deep overhaul and a very strong way to caution borrowers and to eliminate any interest (why is someone making money on this shit again???)

  43. In the criminal law context, it's well known that juvenile brains don't fully develop until around age 25. Young people are more impulsive and impetuous, and the control centers of their brain are much less developed than the reward centers are. This is why juveniles are less culpable for their crimes than adults. And that logic is extending to people ages 18, 19, 20 and so on.

  44. No offense but non profit sector is very well known for paying pretty poorly. I wanted to work for the sector too and looked in to it in the early 2010s but I didn’t want my life to financially look like that. You’re still young enough to change out of non-profit sector, that would help a lot.

  45. I graduated around the same time with the same amount of debt, and I remember the lingering effects of the recession where you could not find a job paying a living wage (kids in reddit think this is something new).

  46. It’s exactly what they’re doing… and the only reason they’re still saying it’s a possibility right now is because they’re hoping it will improve Biden’s favorability ratings if people are thinking he’s working on it.

  47. The only game they know is the DvR politics. They aren’t concerned with how it’ll affect anything else other than elections.

  48. This is what all the commenters ITT who are saying “he’ll just wait close to Election Day to cancel it to get the most votes” don’t understand.

  49. Reminds me of that State Farm commercial of the fisherman dangling a dollar at the end of his fishing line and the lady keeps trying to grab it.

  50. A 6-3 conservative SCOTUS will happily inventing standing out of thin air if that is needed to kill a Dem president's programs.

  51. I dont really understand why debt forgiveness seems to be the only show in town anyway. Surely there are other options like a 0% or 0.5% interest rate on all outstanding loans. Something like that seems to be more in line with what the Executive branch could EO.

  52. Are there any studies/polls that show wiping out student debt is broadly popular enough to move the needle? Of course it is for those in debt, but ultimately it feels a bit like how voters 18-20 care about lowering the drinking age, and everyone older than 21 simply doesn't care. Do voters that have no debt support cancelling debt enough to actually get up and vote?

  53. “Has not ruled out…” is such a weaseling response, not worthy of an administration that has generally been much clearer on intent.

  54. That's just the normal way of responding to questions like this. It's still on the table but there's no immediate plans to do it.

  55. The government didn’t even want to give us real stimulus relief, what makes any of you think they’re serious about forgiving hundreds of millions of dollars in debt just to be nice?

  56. What, that extra 600 dollars a week from unemployment benefit on top of stimulus check wasn’t a real stimulus relief? I know many people including my parent that safely survive 3-4 months off that despite being lay off for Covid reason. They got paid more from unemployment than they ever did in their 11 dollars an hour job. Child tax credits wasn’t enough?

  57. As much as I would love my student loan dept to be canceled, I’m wondering about people taking out loans right after he cancels the dept. Are they screwed? Doesn’t the entire university system (or laws/funding regarding) need to change first to make it less expensive for those seeking degrees?

  58. That's why they'll never forgive all student loans. Because if they did, college will have to be free after that, and that will NEVER happen (maybe in a parallel universe).

  59. Let’s see what happens when the midterms start heating up. I think he’s waiting to sign some executive orders to boost sone vulnerable democrats. Maybe weed too? Idk. But there’s sone political maneuvering happening. If he did it now then it loses its power to get the voters out. The Gen Z and Millennial vote that is.

  60. I’ve been paying my loans back since September 2000. I moved to Canada in 2002 and have had to pay even more back due to the exchange rate. The last two years have been a godsend. I did a masters and doctorate in Canada without taking out a single penny because it’s affordable. The US needs to get a clue.

  61. Fuck this move by biden and the democrats. Playing games with the lifes of the American people for a couple of votes. We need a new party .

  62. The way political "leaders" see something like this is that they're not going to give away all this money unless it's getting them something. If it's done at all, it will be to maximize electoral gains.

  63. Instead of cancelling student loan debt, they just should make it like 001% interest or 0% interest. It's not the loan payment killing people it's the fucking interest. I think it you borrowed the $ you should pay it back, but it should be interest free or very very low interest. Your loan should not be 50k more than you borrowed.

  64. Ive lived 5 years after college, paycheck to paycheck, unable to pay anything down on my student loans due to having nowhere to “nest” and being forced to take another job in a far away location for a lower pay just to have psychological safety and a work-life balance. But in doing so has caused me to survive on retail. Retail cards. Ive spent these last year or two paying down retail cards religiously trying to get to my student loans.

  65. I feel like it might be a little more fair to consider any interest that was paid be considered part of the principle and make the loans 0 interest going forward. That would wipe out a large percentage of outstanding loans and help people make reasonable payments going forward. Also, I think part of the problem is that they can’t just wipe out student debt without solving the problem which is university’s charging the outrageous prices.

  66. Maybe they've finally realized that the US population has the collective attention span of a goldfish and will have long forgotten about anything positive done now by the time the election comes around and instead be focusing on whatever absolute bullshit the right-wing propaganda ecosystem has in store, so they're going to keep extending the pause before finally canceling debt right before the election.

  67. Assuming good intentions, I think he's trying to limit EO's in areas without clear precedent after seeing the damage Trump did with his overreach. If the standard becomes getting a radically different US with each administration, that's the end of American democracy.

  68. The neo liberal playbook. Act like you are for social programs during the election cycle only to be against them while governing.

  69. Democratic voter playbook… don’t vote for someone who does what you want so you can feel morally superior and let someone who is going to go against everything you want win. Then complain dems aren’t doing enough when they don’t have a majority.

  70. I’m not all aboard straight up canceling student debt but I do think all student loans interest rates should be changed immediately to 0%. All the interest that’s previously been paid, even by people who’ve managed to pay there loans off should be refunded every penny, this would pay off quite a good percentage of peoples loans. If banks can be bailed out for nearly 0% on loans they’ll never pay back, the government shouldn’t profit from loans for citizens investing in their own education.

  71. I don't think he should erase or pay down student debt. I think the same money could be used to provide education opportunities for poor and underprivileged people. Alot of people with university degrees already come from middle class families.

  72. i can guarantee that hes gonna just keep pushing for extensions until his term is over, so they can use it again for the next election.

  73. Kicking the can down the road. I don’t mind the forgiveness but at the rate we’re at, we’ll be right back here in a few years if we don’t fix the root of the problem.

  74. I am a teacher. It would be life-changing to not have the debt that my former D- HS friends in the labor force do not have. They can keep the 2-3x my salary that they earn, but it is backward as a society to have to go into debt to have a meaningful career beyond basic labor.

  75. Prediction: Biden will wait until august or October to cancel student debt. He wants a boost for democrats in the midterms.

  76. How about addressing the real issue: a college education is outrageously expensive. It’s one of the few things in life that increases in price every single year without fail and has been for decades. Forgiving student loans is helpful to a ton a people and does absolutely nothing for the youngsters coming up.

  77. Insta reelection: cancel school debt and legalize marijuana and expunge all non violent marijuana convictions. Imagine, i know, the dems having one voice.

  78. How do you reconcile this with people who worked their way through college, had parents who sacrificed and saved to pay for their college or paid off their loans?

  79. I don't think you can. A large percentage of the population doesn't have a post secondary education at all. How are all these people going to feel about handing over tax dollars? This is going to turn into a huge political issue. It's only good for the people at this very point in time that have student loans. What about the next generation of students? Like you said, what about all the people who took years to pay of their loans?

  80. If anyone is interested in some of the legal arguments for this: Yale and harvard have both put out papers. The Yale paper is part of a PhD dissertation from an established debt and bankruptcy law expert, the Harvard on is more of a memo. Either way in short:

  81. I guess I'm confused as to why people who took out loans to go to fancy colleges are being rewarded when others worked to pay for college or were unable to go at all because of the cost. How is this fair?

  82. We need the under-privileged people, the ones who couldn't get loans / didn't have the chance to go to college, to pay for the ones that were privileged enough to go.

  83. I still think this will massively piss off people who had to pay down their debt by themselves. I know its for the best but can’t help feeling irked about how I had to live frugally, scrimp and spend a few years paying off my debt.

  84. Can someone explain to me why student loan debt should be cancelled? It is a loan like any other loan that you agreed to take on. Am I misunderstanding something? Is it the high interest rates that is problematic?

  85. There's also the interesting history and comparisons that people are forgetting. The US and its individual states did actually at one point subsidize education as an investment towards a more educated public, much like most of our 1st world counterparts do today. After all, it is a fantastic investment in a society you wish to be globally competitive. In any case under this, you could actually "work your way through college". Then economy crashes and other factors shifted a drop in education budgets that pushed the cost onto the individual and gave them free, almost unregulated access to loans. Many from the government. This was "free money" to colleges who hiked their prices at an unreasonable rate, all without adding any additional value to the degree. In any other situation where this happened, demand would plummet. However, most jobs marketed to young adults require a college education. Kids are basically told they will be homeless or working at McDonald's without going to the best college they can. It's not the American dream to go to a college you can afford. Honestly, in many cases where your connections help eith your prospects, this is true.

  86. Actually he's playing 5D chess and waiting right before elections because if there's one thing people will immediately forget, it's having a massive debt lifted off their shoulders - Reddit

  87. He has many attorneys whose job it is to speculate if he (or one of the executive branch administrative agencies) can legally take any number of actions unilaterally. The answer isn’t always clear.

  88. I just can't see how this is a good idea. They signed a legal contract saying they were getting an education in exchange for money and now they don't want to pay that money? I'm assuming this will even increase inflation even more.

  89. There's also the scenario that some frat boy who spent $200k+ on their education would essentially get a six digit windfall while a responsible student who worked while going to community college and a state school to keep debt as low as possible gets nothing.

  90. I don’t think the totality of everyone’s loans will be forgiven, so I would like to see 0% interest going forward, and all payments being fully tax deductible against income.

  91. I don’t want my student loans cancelled, but I sure as hell want the criminal amount of interest I’ve accrued to be cancelled.

  92. But what would happen to all the kids wanting to go to college after the debt was wiped? Would they just be saddled with the debt instead and waiting for someone else to wipe theirs?

  93. I have mixed feelings on this. On one hand, I went to a lesser school than I could have gotten into so that I could graduate debt free. I feel like I made the correct decision, but I would certainly regret it if debt were canceled.

  94. Easy solution to this whole mess, allow the debt to be discharged in bankruptcy. There has to be a penalty for non-payment, otherwise why the fuck do I pay ANY of my bills.

  95. This seems crazy to do, and would incentivize financial irresponsibility. Why worry about paying back debts when eventually the government will cover it for you? Not to mention, we are in a high inflation environment and this would exacerbate that.

  96. Talking to the wall on this one lol, most of Reddit is white college educated. They want their handouts when we could see the money going to actual good social programs (making housing more affordable, the child credit policy, better funding for k-12 education, etc)

  97. Student loans shouldn’t be canceled. A person made the choice to take them they should pay them back. That being said tha system is extremely predatory and the interest is insane. I’m all for dropping/lowering the interest, but the principal amount should be paid in full.

  98. Seriously, I paid off my student loan debt. If this happens do I get a refund? The money will also be pumped into the economy, which seems to be the only argument for this nonsense

  99. I’m not against cancelling student debt, however if it does happen what about the Americans without debt. How do they benefit from this whatsoever

  100. It would actually negatively affect people without debt. [Many studies have shown that cancelling all student debt would cause an increase in inflation.] (

  101. It's not only that. What about in 5 years, all the new student debt, they are just fucked? How does it help to focus in on the last decade of students and just help them

  102. I’m hoping everyone is give a weeks notice so I can take out a 200k loan and buy a house in Austin I mean get my masters degree

  103. Everyone will benefit from even higher levels of inflation. Think it’s tough to buy a house or car right now? Let’s see what happens when billions in student debt is wiped out!

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