Staff Reports
After a lengthy break, federal student loan borrowers will soon have to start repaying their debts once again. This comes at a time when consumer prices are on the rise, making it even more difficult for households to make ends meet. President Biden is hoping that by getting borrowers back on track with their loan repayments, he can improve the public’s perception of the economy and gain support for his re-election campaign.
According to Democratic strategist Mary Anne Marsh, issues like abortion, gun control, climate change, and student loan debt forgiveness are crucial to young voters. Democrats are eager for these voters to turn out in the 2024 election, especially if they’re up against former President Trump. Marsh believes that Biden is doing everything in his power to address the student debt problem, while Republicans are doing nothing. This stark contrast, coupled with the conservative majority in the Supreme Court, highlights the need for voters to remember what Democrats have achieved and what they are working towards, as well as the lack of action from Republicans.
On the other hand, conservative advocacy organization Job Creators Network asserts that the blame for the student debt crisis lies with colleges. They argue that colleges have raised tuition fees excessively over the years, using the money for unnecessary purposes like building projects and high salaries for sports coaches and presidents. According to Alfredo Ortiz, president and CEO of Job Creators Network, students should direct their anger towards colleges and hold them accountable for the problem. Ortiz believes that only by targeting colleges can the long-term student debt crisis be resolved.
Republicans have also taken a stance on the issue of student loan debt forgiveness. During the candidates’ debate, Senator Tim Scott emphasized the importance of personal responsibility and repaying loans. He believes that if you take out a loan, you should be obligated to pay it back, just as if you commit a crime, you should face the consequences. Immigration policy and sports participation based on biological sex are also key issues for Scott.
Progressive groups like P Street, the government relations arm of the Progressive Change Campaign Committee, argue that Biden should not be solely responsible for solving the student debt problem. They advocate for swift and bold action to cancel debt, especially for those in dire need. They also emphasize the importance of highlighting the obstruction from extremist Republicans and the influence of the increasingly politicized Supreme Court.
Biden’s reelection campaign is well aware that younger voters are motivated by their personal finances, as well as protecting their freedoms and fighting against the “extreme” Republican agenda. Democrats understand that issues like abortion are particularly important in motivating young voters to turn out for elections. Democrats, including former aide Christopher Hahn, are skeptical about the Supreme Court upholding Biden’s more modest student loan debt forgiveness program, especially after the court struck down the previous proposal. They believe that Congress should take action to reduce or eliminate interest rates and make repayment options more flexible.
In response to the student debt crisis, 90 Democratic lawmakers have called on Biden to take further action. They urge him to use his authority to alleviate the burden of student debt, address rising college costs, and make higher education affordable for all students. Senators Elizabeth Warren and Ayanna Pressley wrote in a letter that the student debt crisis affects people across the country, and borrowers are facing significant financial challenges this fall. To address these issues, the lawmakers believe that Biden needs to swiftly implement a broad and comprehensive student debt cancellation plan.
The student debt crisis is impacting folks across the country, and thanks to the callous Supreme Court, borrowers are facing a financial cliff this fall.
That's why @POTUS must deliver #CancelStudentDebt as quickly as possible and go as broad & deep as the hurt is. https://t.co/VWZZfCkWXQ
— Congresswoman Ayanna Pressley (@RepPressley) August 24, 2023
In the midst of this debate, President Biden is encouraging federal student loan borrowers to apply for his administration’s SAVE Plan. This program aims to limit monthly repayments and cap interest accrual based on income and family size. Biden has also taken steps to reform public service forgiveness and provide relief for borrowers with disabilities or those who have been defrauded. These efforts have benefited millions of borrowers and saved them a combined total of $116 billion.
Biden administration officials argue that the SAVE Plan is not regressive and will help low-income borrowers the most. They believe that by providing assistance to students with debt, it will have a positive impact on various aspects of their lives, such as homeownership, small business formation, retirement savings, and family stability. Ultimately, they see it as a way to create a stronger economy and stronger communities.
Overall, the issue of student loan debt remains a significant challenge, with Democrats pushing for more aggressive action and Republicans emphasizing personal responsibility and holding colleges accountable. Both sides recognize the importance of the student vote and the impact it can have on future elections. The debate continues as to how best to address the student debt crisis and provide relief to borrowers.
