By: Shane McCauley
Canceling student debt would set Biden apart from his predecessors
If Joe Biden truly wants to become a transformative president, then he must cancel at least $50,000 in debt for all Americans carrying student loans. Elected as a reaction to a failed conservative administration, Biden has the opportunity to implement real progressive change, and loan forgiveness would be a phenomenal starting point. Yet, like many of his Democratic predecessors, Biden has expressed reluctance towards implementing progressive policies, a strategy that has no doubt alienated progressive voters in the past. By canceling student debt, President Biden could be the first to break this mold. Doing so would distinguish him from previous Democratic presidents and potentially set his party up for success in the upcoming midterm elections.
The primary reason Biden must address the issue of student loan debt is that students across America are hurting and in dire need of financial help. College tuition prices have risen much faster than inflation, even while 70% of jobs that eventually pay at least $55,000 per year now require a college degree. In the 1970s, 70% of those same jobs went to people with just high school diplomas. This has resulted in 69% of students from the class of 2019 taking out loans because a degree is practically a requirement for a good job. Loan debt also affects people of color disproportionately, meaning that its cancellation is incredibly important for racial justice. For both of these reasons, student loan debt is a major subject that Biden must address seriously. The best way to address the problem would be to forgive $50,000 in debt, which would erase the problem entirely for 84 percent of borrowers.
Unfortunately, Biden’s current plan doesn’t go nearly this far. While he has paused student loan payments until September, his plan to address the problem of student debt cancels just $10,000 per borrower, much less than the aforementioned $50,000 supported by the progressive wing of his party. However, it is not just the progressive wing that supports $50,000 student loan forgiveness. Senate Majority Leader Chuck Schumer and numerous other Democratic senators support the measure as well. Therefore, it is a politically safe decision to cancel student loan debt. Some may still support canceling just $10,000 because they see it as more pragmatic and less of a government overreach but doing so would only erase debt entirely for one third of borrowers. Additionally, the average student loan debt in the U.S. is over $32,000, meaning $10,000 simply is not high enough to erase the financial burden on millions of Americans. Canceling $50,000 of student debt would be the morally correct decision.
Some may argue that Republicans would object, but they have always taken issue with the policies Biden has proposed during his presidency. The passing of the American Rescue Plan through last-resort budget reconciliation alone demonstrates this phenomenon, and that law was nevertheless wildly popular. With little opportunity for bipartisanship, and every reason to pass the policy for moral reasons, Biden should move forward with forgiveness.
Yet, Biden says he is hesitant about forgiving debt for up to $50,000 because he does not know whether he has the executive authority. This is an unfounded claim that represents an attempt by Biden to deflect focus to the Constitution — not his policy. Under the Higher Education Act of 1965, the Secretary of Education, and by extension the president, has the right to “modify, compromise, waive, or release student loans.” By pointing to this act, Biden has the ability to protect his potential decision and authority. This usage of the law is also already precedented, as in 2020, the Trump administration under an executive order cited the act in order to provide student debt relief during the pandemic. While Biden has asked Secretary of Education Miguel Cardona to review the constitutionality of forgiving student loan debt under an executive order, by hesitating, he shows an inability to decisively fight for necessary policy.
This hesitation is nothing new. Time and time again, each Democratic president has failed to capitalize on the opportunity of passing populist progresive reforms out of fear of Republican opposition. If Biden would move forward with higher student loan debt forgiveness, he could begin to change this. This would engage low-propensity voters and move American politics to the left. Furthermore, Democrats would not have to worry about electoral or political consequences, as $50,000 student loan forgiveness is popular by a 17-point margin according to a recent poll and has the support of 36% of Republicans. If implemented, the proposal would create a defining political moment for Biden, improving his popularity with little difficulty. In fact, Biden’s reluctance is actually playing into the hands of Republican politicians. Republicans want Biden to remain politically timid, because as long as he does, he will continue to lose the enthusiasm of progressives while capturing very little bipartisan support given the wildly polarized political atmosphere.
For this reason, Biden should not only move forward with student loan debt forgiveness, but with other popular progressive policies, too. He has little to lose and much to gain, especially with the popularity of these policies. Biden seems to have taken the hint, given the passing of the American Rescue Act and his general attentiveness to progressive issues, which politicians like Alexandra-Ocasio Cortez have noticed. However, progressives across America must remain critical of Biden’s policy and push him to support more policies like loan forgiveness, bringing forth a new era of progressive reform in America.
Biden pictured with a graphic of student loan debt.
President Joe Biden