Government Watch / Opinion

Opinion: Forgiveness Is Not an Option When It Comes to Student Loan Debt

WASHINGTON, DC, May 2 – Political commentator Kristin Tate did her homework and recently published a pithy Opinion article that gets right to the point on The Hill’s online news website. Her topic: student debt forgiveness. She wrote, “The Democrats are hellbent to transfer money to a section of their voting base: Relatively young liberal arts college graduates, many of whom belong to the upper and middle classes. The numerous student loan pauses, as well as demands to fully forgive student loans, have little to do with the pandemic and everything to do with a political goal ahead of the 2022 midterms.” 

Tate notes that the generous Biden student pauses have already cost taxpayers tens of billions of dollars, and on top of that, it’s been estimated that forgiveness could cost as much as $2 trillion. Yet, President Biden is saying that he may go ahead and write off as much as $10,000 per student borrower without Congressional approval using his executive authority. The beneficiaries of his largess would be overwhelmingly borrowers between the ages of 20 and 50. These are mainly people who have gone to college to learn the skills needed to snag good-paying jobs and, thus, are presumably, for the most part, financially able to pay their debts in full.

The American Institute for Economic Research [AIER] did the math and concluded, “Nearly two-thirds of Americans do not go to college. They don’t have any student loan debt to forgive. Of those who do go to college, around thirty-five percent graduate without any student loan debt; and some of those who graduated with student loan debt have since paid it off. So, from the start, we are talking about a policy that will only help around one in five Americans. Roughly 80 percent of Americans will not receive any benefit from a student loan debt forgiveness program.”

As for the notion that citizens who lost their jobs due to the pandemic need relief, the AIER report points out that it may be the case for workers without a college education, but those with a degree have likely been working remotely. According to the report, “most of those with student loan debt also have college degrees. On average, they have been earning about 80 percent more than those who do not have degrees. And those with the most debt—doctors, dentists, pharmacists—have typically realized even higher incomes.” In addition, “these folks generally have more money in the bank and, therefore, tend to be better positioned to weather the storm if they have lost their job or have otherwise experienced a reduction in income due to COVID-19.”

It often gets lost in the discussion that the biggest loser, should student loans be forgiven, is the American taxpayer. The financiers at Nerdwallet say that the U.S. Department of Education owns a whopping 92% of student loans, and currently, there are about 43.4 million federal student loan borrowers with an outstanding debt balance of $1.61 trillion.

Meanwhile, Sandy Baum at the Center on Education Data and Donald Marron at the Urban-Brookings Tax Policy Center, in an explanation published on the Urban Institute website, tells us, “Cancelling student debts will immediately increase the federal deficit; how much depends on the value of the forgiven loans…Suppose the government made a $100 student loan in January and estimated it would bring in a net surplus of $3 over its life. If nothing had changed since January, canceling that debt would increase the deficit by $103. The government would lose the $100 face value of the loan plus the $3 surplus it expected.”

Founding Father Benjamin Franklin is well known for his pithy sayings, including one that might apply to the President Biden and his forgiveness scheme: “The second vice is lying, the first is running in debt.”


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james michalicek
1 month ago

AMAC does lots of talking. Do they ever do anything? If they have, my apology.

Barb
1 month ago

No “Forgiveness”! They signed on the dotted line, they should pay every penny back including interest. A bunch of pansy asses or buttercups! Grow up, man up, and get it together girl!

johnh
1 month ago

Sort of “Wag the Dog” when student loans & leaked memo from Supreme Court are the big news. The big news on leaked memo is : How can this happen with SCOTUS having nine justices & anything that happens in this Legislative Branch should be TOP SECRET . J. Edgar Hoover would be all over this one when he was head of FBI many years ago.

johnh
1 month ago

Student Loans are not the biggest problem facing Americans today. Forgiveness does not benefit the majority of Americans. My two cents : Top Priorities are Biden’s war on fossil fuels & what Russia is doing in Ukraine.

J C
1 month ago

biden a sick pervert, and obama`s legacy, both are domestic terrorists

gayle becker
1 month ago

This makes the point that Executive Orders should be done away with. There has been too many abuses of this privilege.

Jeb
1 month ago

I don’t understand the logic. With that said it makes zero sense to think it will earn the dimwits votes when in fact the increased debt/taxes will drive even more votes away. Those with debt May find it cheaper to pay taxes then related taxes over their lifetimes.

Tom P
1 month ago

Why in the world do these democrats think it is my responsibility to pay someone else’s tuition debt? Nobody paid for mine! I worked 2 jobs to pay for my tuition and ended up quitting when a company offered me a full time position. If you can’t afford it, you can’t have it or you find a way to get it yourself. It’s nobody else’s responsibility!

David L
1 month ago

Student debt should not be forgiven. Paying off loans a student has applied for and accepted to pay for their college education is their responsibility to repay. Paying off your debts is a responsibility that makes you an adult. We as Americans want our children to be outstanding citizens and leaders. The government by cancelling repayment of loans or reducing the amount owed on these loans is the wrong message to send to these college students and graduates.

Nobody’s Business
1 month ago

Another Stupid Democrat plan to buy votes or get more kids to get indoctrinated in college which doesn’t prepare anyone for the real world anymore. I don’t want to pay for stupid Democrats not paying their bills.

anna hubert
1 month ago

we should be the most educated people on this planet yet majority of kids cant’t do simple math or spell after 12 years in ed.system college is a joke I think we’ve been had by the teachers and instructors kids should be asking for a refund

THX 1138
1 month ago
Reply to  anna hubert

Both AOC and the moron currently in the Oval Office are living proof that whoever paid for their education, should be demanding their entire coin investments back!

Willy
1 month ago

My sons were pretty typical and when they got out of high school went right into college. A year later for each one they hadn’t learned anything but that high school didn’t prepare them for college, so they quit, and I was out the tuition and lodging and etc. A few years later my eldest decided to go back and finish college and he had to retake several subjects since he majored in beer. My youngest decided to go back a few years later as well, and he made it through, even though he was then married. When they went back, I didn’t pay their tuition nor their lodging. The moral to this story is kids don’t have much incentive to succeed unless they have some skin in the game. Paying off student loans is a slap in the face to both my boys who have paid off their loans by working, and their work ethic is very good so I don’t have to worry that they will fall into the welfare programs.

There is no reason I can see that my taxes should used to finance paying off student loans for other peoples kids. FJB

Doug C
1 month ago

NO QUARTER!!! You make the debt to achieve higher educational qualifications, YOU PAY THE DEBT!!! PERIOD!!!

Ertis Crumpler
1 month ago
Reply to  Doug C

Amen. Why should debt be forgiven to someone that had every chance to make everything better in life. It is a debt and debts have to be paid or have their credit record ruined.

Jeff Lee
1 month ago

ENOUGH of this “executive authority” and inane Executive Orders. It is time to wrestle back control of OUR government!!

Linda K Criswell
1 month ago

Forgiving student loans is insane! Doing that will only cost hard working taxpayers. Borrowing for education is a choice. Those who are struggling to pay medical bills, veterans struggling to make a living and find housing – that is not a choice. We need to help those people instead of those who willingly went into debt with student loans. An education is good – just don’t make others pay for it.

Arlene
1 month ago

Those who struggle with legitimate concerns, veterans, people with outlandish medical bills may not vote democrat so Biden’s regime goes after young people who have been endoctrinated in liberal universities. They are so desperate for votes but could get them easily if they had any common sense.

Philip Hammersley
1 month ago

Why forgive the debt of students who go to expensive “elite” schools, spend money on booze, drugs, and spring break, and take classes on queer studies, latino studies, etc. Only help those who are actually learning something which will land them a job. Students attending technical colleges or pursuing real majors could be helped.

MariaRose
1 month ago

But the ones that didn’t go to college to learn applicable skills for careers are the ones most likely complaining about their student loan debt because they are feeling responsible for their life choices. After all their reality of ideal jobs is not caused by their illusions but lack of realization of reality. They feel that they have a right to do as they will with no reaction consequences for their actions, totally not comprehending the basics of signing a contract. If they don’t like the consequences, they can use excuse blame to get out of the problem.

Daniel Diehl
1 month ago

I know some who purchased a home in the pass, % rate changed and there payments went up. Government bail out stopped foreclosure. They live in a nicer home then I thanks to the overreach of the Feds. I purchased my home and paid it off, no hand out or even a very well done American! Nope the ones that live on the edge, over there means get the gift. So wrong!!!! Now you want me to pay for someone’s schooling, so nice you feel I should help. I pay my taxes and I bet those abusing the great USA in there legal but un-ethical way cheat all the way to the bank. Why not take a look at all who got stimulus loans, many had no business at all, those that did have a business, many did not need the loan. Who pays, I do, yet I created no business to fake a loan so easy to get. You government officials create crooks, within your easy money system you take a pretty big hand out yourselves, I guess that is the reason for creating such a system. Self Served

Hal
1 month ago

The article merely describes the compelling need and action for the DemocRat Party to gain and hold power. The DemocRats are the awkward example of how Communism worms its way in to getting power to primarily enrich its upper echelon. The guiding purpose of the DemocRat Party is to
GET ELECTED by any means (legal or illegal, honest or dishonest. fair or unfair, Constitutional or not Constitutional, etc.). It is woven into the hearts of DemocRats that is is PARTY first and all other American and Constitutional values are secondary if they cannot be used to promote the DemoCrat Parties well-being and control of the people. In more simplified terms, the DemocRat Party is a modified clone of Communism.

ops
1 month ago
Reply to  Hal

A party of destruction

Max
1 month ago

Goodbye AMAC, your censors have done their job of suppressing free speech and thought.

Ken
1 month ago
Reply to  Max

??????

Max
1 month ago
Reply to  Ken

Had 5 comments censored and taken off yesterday by the AMAC censor team despite their relevance to various AMAC articles. Paul E had the same problem last week.

Weck
1 month ago
Reply to  Max

Explain that??

Patriot Eric
1 month ago
Reply to  Max

Quit whining! Take a bit more with putting your thoughts into a more palatable format and you will be fine. I learned to do it.

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