Another Student Loan Extension…But It’s Not Enough for Liberals

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Student loans have been a huge issue for liberals. Those like Elizabeth Warren and Chuck Schumer have been telling Biden to cancel student loans using an executive order – or at the very least, cancel out $50,000 of debt for everyone who holds student loans.

Biden is hesitant to do so. He knows that it could have catastrophic results. And, he’s not even sure if he has the power to do so with an executive order.

Student loan repayment is critical for a number of reasons. One, it provides revenue back to the Department of Education. After all, the debt is there because loans were given – and loans are meant to be repaid. Second, it demonstrates to everyone who obtained a loan that they have to make good on their promise to pay the loan back. Everyone who took out a loan knew what they were getting themselves into – they knew that loan repayment would take place.

COVID is over, for the most part. People are back to work. So, there’s no reason why there should be another student loan extension. However, since the liberals haven’t gotten their way, it looks like there’s going to be another push.

Right now, loans will be removed from forbearance on May 1. However, it appears that Biden will sign to extend the pause one last time – but only until August. This would be the shortest period of extension since the very beginning – and it leaves many wondering why it will only be for a few extra months.

The pause of student loans impacts around 40 million Americans. And while it has provided financial help to some, others are simply using it as a way to pay down the loans faster – and without the worry of accumulating even more interest.

The extension is likely all that the Democrats need to figure out how to get relief to those who need it before the midterm elections. People like AOC and Ilhan Omar have used student loan forgiveness as a major part of their platform. If they don’t deliver as they promised, it’s going to hurt them – and many other liberals – come the November elections.

Biden has already told federal student loan servicers not to send out communication as to when monthly payments would be restarting. He needs more time to figure out what he’s going to do.

The liberals are fuming. August 31 is not the kind of extension they’ve asked for. It won’t even get them through the midterm elections. If it were up to them, all would be forgiven.

That leads to another problem that no one wants to talk about, though. If loans are forgiven, what about all of the incoming college freshmen next year and the year after? For those who cannot afford to pay for their college classes with cash or scholarship money, they’ll need loans. And at some point, they’ll have to pay those loans back. We cannot get in the habit of forgiving all loans all the time for all students. It sets a bad precedent and could help the government dig into a further recession than we’re already in.

Susan Rice, the domestic policy adviser for the Biden administration, has “advocated for each pause on the repayment of student loans, including this most recent one” according to a White House official.

Still, that’s not good enough for the Democrats. They don’t just want a pause in payments. They want forgiveness of the existing loans and a better student loan system moving forward.

Tens of millions of people with student debt are once again in limbo as Washington plays politics with borrowers’ financial lives. Joe Biden needs to keep his promises to fix the broken student loan system and cancel student debt.” This is from Mike Pierce, the Student Borrower Protection Center Executive Director.

Well, with the added pause, it gives the administration a few more months to figure out what they’ll do. Either they’ll break promises and lose the midterm elections or millions of people will suddenly see their student loan debt disappear.