President Biden faces criticism from student loan borrowers and advocates as he deviates from his original promise of universal relief. As student loan payments resumed after a pandemic-induced pause, the Department of Education announced its initial policy considerations for the next debt forgiveness plan. While the proposal aims to forgive debt for certain groups of borrowers, it falls short of providing relief for all 45 million borrowers. This revelation has rattled advocates and raised questions about the administration’s commitment to loan cancellation.
Alan Collinge, founder of Student Loan Justice, criticized the Department of Education’s lack of intention to cancel loans, stating, “They want to put forth a face like they’re really wanting to cancel loans, but the fact of the matter is, the Department of Education has no real desire or intentions of actually canceling any loans, if they can possibly get away with not doing that.”
The administration’s proposal targets “student loan borrowers in need,” including those who entered repayment decades ago, those with higher balances than their original owed amount, those eligible for relief under specific programs but didn’t apply, those experiencing financial hardship, and those who received little financial value from their programs.
In an attempt to address the concerns of advocates, President Biden will discuss student debt and his administration’s efforts to tackle it. Natalia Abrams, president and founder of the Student Debt Crisis Center, emphasized the need for comprehensive debt cancellation, stating, “We must and should cancel student loan debt.”
The administration acknowledges that it is still early in the rulemaking process and that the final plan’s details are yet to be determined. An Education Department spokesperson stated, “We have said we want to reach as many borrowers as possible. We look forward to the negotiated rulemaking process to help develop a robust final product.” So far, the Biden administration has already forgiven $127 billion in student loans.
However, the new efforts fall short of the president’s campaign promise to forgive a minimum of $10,000 of federal student loans per person. The policy considerations will be discussed at the first Student Loan Relief Committee meeting in October.
Secretary of Education Miguel Cardona commented on the ongoing efforts, saying, “We’re committed to standing up for borrowers and making sure that student debt does not stop anyone from climbing the economic ladder and pursuing the American dream.” Nevertheless, if no changes occur, the Biden administration could face pushback from other Democrats who advocate for more transformative action, such as Sen. Elizabeth Warren’s proposed executive order to provide universal relief of up to $50,000.
Despite the evolving relief plans, Antjuan Seawright, a Democratic political strategist, recognizes the challenges President Biden faces in fulfilling his promises due to political limitations. He stated, “It’s the extreme Republican majority who do not want to lend a hand to help the least of these marginalized communities, working-class folks. Those are the people who split power, unfortunately, so [Biden’s] very limited to what you can do as president.”
Republicans have consistently opposed student debt relief, arguing that it is unfair to those who have paid off their debts or never pursued higher education. Biden’s previous debt relief plan faced opposition from Republican attorneys general, citing potential financial repercussions. While some may be disappointed with Biden’s revised proposals, it still represents more relief compared to what a Republican president would offer, potentially making these changes inconsequential in the next election cycle.
DeNora Getachew, executive director of DoSomething, expressed hope that there won’t be a loss of trust in the Biden administration’s efforts to provide student debt relief. She acknowledges the need for recalibration and an understanding that the administration is working to bring forward a proposal that helps some young people, even if it falls short of the initial intentions.
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