The Biden administration has raised the white flag once again, this time withdrawing two policies related to student loan forgiveness that’s going to have a whole of folks incredibly ticked off. To be fair though, this is something most people with common sense were against from the get-go. You cannot subsidize the education of the vast majority of American young people. It just doesn’t work that way. Loan forgiveness doesn’t mean the loans just disappear. It means taxpayers foot the bill.
Trending Politics News is reporting:
On December 20, the Department of Education announced the withdrawal of two proposed regulations intended to cancel student debt for over 38 million borrowers. These plans faced legal obstacles, including a federal judge’s preliminary injunction following a lawsuit from Republican attorneys general. The Department cited operational challenges and the need to prioritize assisting borrowers resuming payments after the pandemic-induced pause as reasons for the withdrawal. The proposed forgiveness plans encountered significant opposition, with critics arguing they were unconstitutional and amounted to an unfair wealth transfer. The Department of Education maintained that it possesses the authority to forgive student loans for borrowers meeting certain criteria or facing financial hardship. However, officials concluded that there wasn’t sufficient time to implement the proposals before Joe Biden’s term concludes on January 20, 2025.
While this is going on, officials that are working with the Trump transition team have been trying to come up with ways to take apart the student debt relief initiatives put in place by Biden and his crew.
“In light of the comments received and those various pending court cases, the department has determined not to regulate on this issue at this time,” officials wrote. Despite the withdrawal of these broad forgiveness initiatives, the Biden administration has continued to provide targeted debt relief through existing programs. On Friday, the Department of Education announced the cancellation of $4.28 billion in student loans for public service workers, bringing the total debt forgiven during Biden’s tenure to approximately $180 billion for nearly 5 million borrowers.
As a result of the time crunch that exists between now and Trump taking over the White House, the Department is now focusing on helping individuals get back on track with paying off their loans instead of expecting everyone else to pay it off for them.
The Supreme Court, in a 6-3 decision, blocked Biden’s plan to cancel $10,000 to $20,000 in student debt for 40 million borrowers using emergency COVID-19 powers earlier this year. Reacting quickly, Biden directed the Education Department to seek alternative debt relief methods under existing law. A proposal from April would forgive the debts of roughly 30 million Americans based on factors like accrued interest and prolonged debt periods.
“President Biden’s proposals would have freed millions from the crushing weight of the student debt crisis and unlocked economic mobility for millions more workers and families,” commented Persis Yu, deputy executive director and managing counsel of the Student Borrower Protection Center.