Biden administration proposes changes to student loan programs
NBCDec 29, 2022
Biden Admin Proposes Changes to Student Loan Programs
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Image copyright: Getty Images [via NBC News]
The Facts
On Wed., the Biden admin. proposed new steps to alleviate the burden of student loans, including a rule that would curb interest rates for nearly all of the 40M borrowers in the US.
Reversing a Trump-era restriction, the proposal would make it easier for students defrauded or misled by their educational institution to have their debt forgiven.
The Spin
Republican narrative
Student loan forgiveness is simply a bribe for voters to vote for Democrats in upcoming elections. Besides the fact that it will hurt America's taxpayers more than anyone else, the move could easily backfire for Democrats by driving up inflation and further damaging the economy.
Democratic narrative
Student loan forgiveness could be a simple way of creating more equity in American society and even actually stimulate the economy by helping young people struggling under the burden of large debts. Student debt has disproportionately hurt Black Americans. Forgiveness would "even the playing field" for all Americans.
Cynical narrative
Though student loan forgiveness could be an effective and moral policy, SCOTUS could very likely make such a move a moot point anyway. The court has shown a clear recent pattern in limiting executive power.
