Staff Reports
The Biden administration recently unveiled yet another act of fiscal generosity, this time forgiving a staggering $4.5 billion in student debt for more than 60,000 public sector employees. This latest round of fiscal “relief” pushes the total authored by President Biden’s handouts to a jaw-dropping $175 billion, benefiting nearly 5 million people—an impressive feat when you consider it represents 11% of the entire federal student debt.
This wave of loan forgiveness comes courtesy of the Department of Education’s Public Service Loan Forgiveness program, a brainchild of President George W. Bush, launched back in 2007. Apparently, the current administration has decided it’s more beneficial to wipe the slate clean rather than ensure borrowers are held accountable for their choices. Biden himself mused about the importance of public service workers—teachers, nurses, and firefighters—calling them the backbone of communities as he trumpeted the government’s supposed benevolence. Apparently, “commitments” made by the government no longer mean the same thing they used to.
'Biden-Harris Announce Another $4.5Billion In Student Loan Forgiveness Bringing Total To 1Million For Public Servants.'
'public servants'
Heck, everyone should just work for govt.
Big salaries, big #pensions + your student loans get wiped out.#Thursday https://t.co/zvNpqn4GWx pic.twitter.com/HTMzY3HqQ1— Beverly A. Pekala (@PekalaLaw) October 17, 2024
The timing of this announcement is as subtle as a 2×4 to the noggin, occurring just weeks before a nail-biter of an election between Vice President Kamala Harris and former President Donald Trump. The White House is undoubtedly banking on this debt relief scheme to schmooze younger and Black voters who might have been left feeling a little cold after peeking at their paychecks post-tax day. Harris has promised to elevate the Public Service Loan Forgiveness program and extend its tentacles into helping Black men become public school teachers, further pushing her agenda in the process.
Contrasting this indulgent magnanimity, Trump has taken a hard stance against the program, arguing it’s an exorbitant expense that the federal government simply cannot afford. His rhetoric continues to slam Biden’s robust spending habits, claiming they not only contribute to economic dysfunction but also undermine personal accountability. Borrowers may have been scratching their heads as they learned that, after years of payments, they were sometimes stuck in the wrong repayment plan or had the inappropriate type of loan, a headache that had a rejection rate under this program reaching a shocking 98%.
With the Supreme Court having tossed Biden’s initial plan for broad student debt elimination, it seems this program is a last-ditch effort to appease that campaign pledge. Originally, Biden aimed to cancel up to $20,000 for low- and middle-income borrowers, but alas, the pitiful rejection rates might leave even the most optimistic borrowers feeling less than hopeful. Putting taxpayer dollars toward debt relief instead of addressing the issues at hand might be the administration’s way of winning votes, but it’s certainly raising eyebrows among fiscal conservatives who understand that there’s no such thing as a free lunch.
