Staff Reports
The Biden administration has made the decision to cancel $6.1 billion in student loans for 317,000 former students of the Art Institutes. President Joe Biden stated that the institution had provided false information, misled students, and burdened them with substantial debt without any guarantee of career success. He also criticized former President Donald Trump’s handling of similar situations, claiming Trump had neglected to address colleges defrauding students and borrowers.
Critics of the loan cancellations, particularly conservatives and budget hawks, argue that this approach will ultimately harm taxpayers, as any unpaid loans will be added to the national debt. The Committee for a Responsible Federal Budget estimated that the total cost of Biden’s various student loan programs could range from $870 billion to $1.4 trillion, exceeding all previous federal spending on higher education in the nation’s history. Furthermore, much of this debt cancellation has been implemented through executive orders, bypassing congressional approval and leading to legal challenges from GOP-led states.
Biden cancels student loans for art students as total cost of forgiveness could exceed $1 trillion https://t.co/TXvDrvICTw
— Trump2024_no_matter_what (@TexasTrump2024) May 1, 2024
Despite the opposition, the administration asserts that the loan cancellations are designed to help young individuals progress in life by alleviating their debt burdens, enabling them to pursue milestones such as marriage, homeownership, starting a family, or establishing a business. President Biden emphasized that his administration had already approved nearly $29 billion in debt relief for 1.6 million borrowers affected by exploitative colleges, closures, or related court settlements. He highlighted the approval of debt cancellation for nearly 4.6 million Americans through various measures, underscoring the administration’s commitment to supporting borrowers and holding irresponsible institutions accountable.
The upcoming midterms and the potential impact on voter turnout appear to be a key consideration, as younger voters who have attended college are a crucial constituency for the Democratic Party. President Biden previously announced a student loans plan before the midterms, which was later deemed unconstitutional by the Supreme Court. Despite this setback, the administration continues to implement new programs aimed at relieving student loan debt and expanding access to higher education. President Biden affirmed that the administration is steadfast in its commitment to delivering relief to borrowers, ensuring accountability for unethical practices, and increasing access to college education for more Americans.
