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      The supreme court just threw millions of American student debtors under the bus | Eleni Schirmer

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      Last August, President Biden did something no president has done before. He announced a plan to mass cancel student debt, offering $10,000 to $20,000 of relief for borrowers who earn under $125,000 annually.The triumph of this policy was more than the sliver of debt that it potentially sliced off the second-largest type of household debt in the US. More fundamentally, Biden’s policy proposal put an ideological dent in the American doctrinal belief that a creditor’s right to repayment is the first-order business of any economy.On Friday, in a 6-3 vote on ideological lines, the US supreme court undid all that. The court ruled against Biden’s student-loan forgiveness policy and put millions of Americans’ financial futures in peril.Debt intensifies existing inequalities in society: those who have the least rely on debt the most, for everything from housing to healthcare to higher education. Debtors end up paying higher costs for the same goods than those who can pay cash upfront. Black people and women bear the highest student debt burdens; over time, they pay a higher sticker price for the same degrees as white people and men. For these reasons, Biden’s proposed plan was also a major attempt to chip away at the racial wealth gap.It was no wonder, then, that within weeks of Biden’s policy announcement, half a dozen rightwing lawsuits sued to stop the president’s program. Although most of the suits were thrown out, two stuck, and temporarily halted the program. Late last fall, Biden requested that the US supreme court intervene. Although there has been much handwringing about the student debt case in front of the court – its role as a bargaining chip in debt-ceiling negotiations, its prospects to drive voters to polls in 2024 – most of the discussion misses the point.That’s because the supreme court case in question was not actually about whether the president can cancel debt. It was about whether the plaintiffs in the case – six Republican attorneys general – could reasonably prove that cancelling millions of people’s student debt harms their state, and whether judges would believe their lies.The state of Missouri contended that it will be harmed because a quasi-public loan servicing company there, Mohela, may lose revenue from cancellation, making it more difficult for Mohela to repay an old debt owed to the state of Missouri. But that violates a basic legal principle: you can’t sue on behalf of somebody else. My roommate can’t sue my employer for laying me off and making it harder for me to pay my half of the rent, yet this case would set such a precedent.In fact, internal emails between Mohela employees revealed utter confusion about the case. One employee bluntly pointed out that Missouri has no standing; another worried: “Are we the bad guys?” Even conservative legal experts ideologically opposed to the concept of student debt cancellation acknowledged that the plaintiffs weren’t bringing a legitimate claim.But putting aside the fact that Missouri has no standing to sue, the state’s claim that Mohela’s revenue loss from cancellation would endanger its ability to repay a $105m debt owed from 2008 is patently wrong, as research I recently co-authored reveals. Even with Biden’s pledged cancellation, Mohela is poised to have a gangbuster year, raking in more revenue than at any other point in its history.Yet Trump-appointed judges in the eighth circuit, yielding to dubious conservative claims, issued a nationwide injunction on Biden’s relief policy. Within weeks, the case was whisked to the highest court in the land, skirting over basic fact-finding and discovery processes. In oral arguments, the plaintiffs offered little more than the phrase “it stands to reason” to justify their claim that Mohela would lose money.The plaintiffs rigged up such a convoluted suit in an attempt to avoid a legal reality: the president and the Department of Education have full authority to cancel debt under a provision, the Heroes Act, to cancel debt in national emergencies such as a pandemic. This is just one of many legal authorities that Biden has at his disposal to cancel student loans.Now that the court has struck down Biden’s first policy stab, Biden can, and must, swiftly exercise other legal authorities to automatically cancel debt. The court’s ruling is not the death of debt cancellation – it’s merely a blockade on one channel to get there.But the fact that we have found ourselves in this position – with a couple of frivolous lawsuits delaying relief for millions of struggling Americans – should not be misread as merely yet another failure of our increasingly conservative and out-of-touch court.Debt relief is on the precipice in part because Biden failed in his execution. Despite warnings and pleas from experts and advocates, Biden insisted on routing cancellation through an application, rather than automatically and universally discharging debt. This choice was costly, in more ways than one. It took the Biden administration 52 days between announcing the policy to ready the application program. Rightwing groups seized the opportunity and sued to block the whole program.When Biden takes another crack at his generation-defining policy, he should have a strategy that reflects the ambition of the goal, rather than wavers and offers half measures. The fate of the 2024 elections doesn’t just rest on the bold policies Biden announces, but the boldness of his strategy to actually get them done.
      Eleni Schirmer, a writer and postdoctoral fellow at the Concordia University Social Justice Centre in Montreal, is part of the Debt Collective More

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      ‘There’s no way I can pay it’: Americans dread restart of student loan payments

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      Many Americans are dreading the return of interest accrual and the restarting of their monthly student loan payments as a huge political fight over Joe Biden’s debt forgiveness plan rages on.Americans have $1.635tn in federal student loan debt, held by 43.8 million borrowers. Some 26 million people applied or were automatically accepted for student debt relief under Biden’s plan before applications were suspended because of lawsuits launched by Republicans.That plan would provide student debt relief of up to $20,000 for eligible borrowers and up to $10,000 for borrowers with less than $125,000 in annual individual income.But Republicans pushed to prevent any further extensions of student loan payments and want to overturn Biden’s plan that has now been tied up in the US courts since last year, with a US supreme court ruling on the issue expected very soon.Michael Chaney, a 56-year-old truck driver in Ohio, has student debt from a retraining program through the Ohio Bureau of Vocational Rehabilitation that he went into after getting injured on the job while working in a foundry in the late 1990s.“I had to take out student loans to help pay for the schooling, or else they wouldn’t help me,” said Chaney.He said his student debt increased due to having to repeat some math classes. Even after Chaney filed for bankruptcy in 2009 after getting divorced, his student debt wasn’t able to be discharged. He worked in IT after finishing schooling but switched to truck driving to be able to work more hours.“There’s no way I can pay it. They’ve got it set up so you can never pay it off,” said Chaney, who still owes around $60,000 in student loans. “I keep making $400 or $500 a month payments and none of the principal goes down. I worked all my life and I don’t have nothing. I’ve worked six days a week, 12-hour days in the steel mill before I got hurt. We’re barely staying alive. I can’t keep up. I can’t pay it.”The debt ceiling package negotiated between Biden and the House speaker, Kevin McCarthy, and signed into law in June 2023 ends the pause on federal student loan payments and interest.A spokesperson for the US Department of Education told the Guardian the department will be in contact with borrowers before repayments begin. Interest accrual on student debt is set to begin occurring again in September 2023 and the first payments are due in early October.For millions of Americans, restarting payments or even being able to keep up with payments, won’t be financially possible.“Adding another expense to my budget would put me beyond a financial hardship,” said Anne Marie Mosley, a teacher in Massachusetts who is still waiting to see if her public loan service forgiveness application is approved.“When payments restart, I will not pay. I’m an underpaid teacher and I just won’t have the funds,” said Jacque Abron of Texas.Janelle Gallardo, a mother of three in California, started paying her student loans in 2016 when she completed her master’s degree, with payments ranging from $200 to $500 a month. Under the student loan payment pause, she has struggled to keep up with the rising cost of living and currently works two jobs to make ends meet.“I went from paying about $1,000 a month to now over $2,000 in groceries, I cannot even imagine paying another large bill like this,” said Gallardo. “I don’t even know how we would make it work with resuming payments based on how much everything has gone up in my state. I have not been paying during the pause because all our money either goes to bills or taxes, we haven’t even been able to afford health insurance right now.”But Republicans have also pushed to add retroactive interest to student loans that did not accrue during the pause and revoke forgiven debt for over 250,000 borrowers who applied and were approved for public service loan forgiveness.Christina Winton of Phoenix, Arizona, has struggled with paying her student loans since graduating with her bachelor’s degree and completing her master’s degree program.She has filed for public service loan forgiveness, after having to obtain years of her bank statements because her loan service provider did not have records to prove she made the required 10 years of payments to be eligible.She explained student debt has affected her considerably over the years and despite keeping up with payments, through loan service providers changing rules and ballooning interest, she still owes more than she originally borrowed.skip past newsletter promotionafter newsletter promotion“I’ve been paying student loans for over 30 years. I’m a first generation graduate, first in my family and maybe the last one. I have a 17-year-old and an 11-year-old. Neither of them will be able to attend school, I can’t afford to pay for it, I’m too busy trying to work, pay the bills, and pay these loans,” said Winton.She added: “Once loans restart with interest starting again, the artificially high balance bill will have interest added again, causing a huge crisis.”Debt relief advocates have pushed for broader student loan forgiveness and to expand borrower rights, such as making it easier to discharge student debt through bankruptcies. The NAACP has pushed for a minimum of $50,000 in student loan forgiveness and has warned about the negative impacts starting student loan repayments will have without any forgiveness plan enacted.A recent report by the Jain Family Institute found the student debt pause benefitted borrowers who were already going to pay their student loans back, while structural problems with student debt have created a system where the majority of borrowers have not and cannot pay back their student debt.Jim Mazey, 54, who lives in Ohio, said he had paid over $27,000 on an original student debt of $44,00, but over $18,000 of that went toward interest and he currently had 140 more monthly payments left. He obtained a bachelor’s degree and certification to work as a purchasing manager, where he has worked for 29 years.When the pause ends, he fears being stuck with payments into retirement or the debt delaying his ability to retire.“I will be 65 years of age before the loan is paid,” said Mazey. “Like most people we have, and always will be, living paycheck to paycheck.”Even before the pause on federal student loan payments, the majority of borrowers were not making any payments, with just over 50% of borrowers not making any payments toward direct and FFEL loans in late 2019, according to Department of Education data. More than 4 million borrowers were paying zero payments while enrolled in income driven repayment plans.Audrey Fiscus of Arizona has struggled with student debt since graduating nursing school in 2006 as a single mother, who divorced her ex-husband at the time and went back to school while he struggled with a drug addiction.“I’ve been paying my student loans monthly for over 10 years, ranging from $450 to $510 a month,” she said.Despite making regular payments for ten years, her $35,000 in student debt has ballooned to $82,000 since 2006.“I feel like I’ll die with this debt,” she added. More

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      ‘Who should pay?’: student debt relief in limbo as supreme court decides fate of millions

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      ‘Who should pay?’: student debt relief in limbo as supreme court decides fate of millions Over 26m student loan borrowers are waiting for the country’s highest court to decide if they can receive debt reliefDebt-laden borrowers will be nervously watching the US supreme court come February when the justices hear arguments for two cases that will ultimately decide the fate of over 26 million student loan borrowers who have applied for loan forgiveness.US student debt relief: borrowers in limbo as lawsuits halt cancellation programRead moreThough the future of student loan forgiveness is uncertain in the hands of a deeply conservative court, two researchers who have studied public opinion on student debt and college accessibility see room for optimism, even amid uncertainty around the issue.The millions of Americans who applied were set to get at least $10,000 (£8,320) in relief for their loans under a plan that Joe Biden released over the summer. But the plan’s rollout was halted in November by a Trump-appointed federal judge in Texas, putting the possibility of forgiveness into question.“[Student loan forgiveness] is something that five years or 10 years ago, we wouldn’t have seen. It shows that there’s movement for politicians and the public to do something about student debt that has meaningful effects for a lot of people,” said Natasha Quadlin, a professor at University of California, Los Angeles who co-wrote a book this year, Who Should Pay?: Higher Education, Responsibility and the Public that documents the change in public opinion on how much the government should pay for higher education.Quadlin, along with her co-author Brian Powell, a professor at Indiana University, started administering surveys in 2010 asking people who should pay for college: parents, students or the government.In 2010, nearly 70% of respondents believed that only parents and students should be funding higher education. In 2019, the number dropped to 39%. Meanwhile, the percentage of people who believe the government, both federal and state, should primarily fund college rose from 9% in 2010 to 25% in 2019. All other respondents indicated that the government should help parents or students pay for college.When Quadlin and Powell set off to do this decades-long research in 2010, they did not realize how dramatically people’s perspectives on who should pay for college would change.“When we started working on the book and collecting data, the idea of loan forgiveness was not even really part of the American consciousness,” Powell said.The researchers note a few factors that went into this rapid shift. First, student debt nearly doubled in size between 2010 and 2015, reaching $1.3tn (£1tn) by the end of 2015. The cost of college was also rising, especially since states were slashing higher education budgets during the Great Recession.Fight against inflation raises spectre of global recessionRead more“It became apparent that the current generation that was going through higher education just wasn’t getting a very good deal in terms of the returns they were seeing,” Quadlin said.Some respondents also noted that the Affordable Care Act, passed in 2010, showed them that government can offer broad support for certain areas of life.“Several people said: ‘If we can do this for something as important as healthcare, and ensure health insurance, then we should be able to do that for education as well,’” Powell said.Sentiment had changed so much that some states were discussing the possibility of free college, a policy that Quadlin and Powell did not even consider putting on their survey in 2010. By 2019, over 20 states offered programs that either reduced or eliminated the cost of public college. Nearly 40% of respondents on the survey strongly and 32% somewhat agreed that public college should be free for those who are qualified to attend.Loan forgiveness and free college, while similarly addressing accessibility to higher education, are ultimately two different issues. While the researchers note that both should be pursued simultaneously, it appears that much of the current focus is on addressing debt forgiveness as the immediate problem.How quickly either will be addressed is unclear, but “the costs and burden [of student debt] is so high and so widespread”, Quadlin said.“There is a recognition that college is necessary for such a large percentage of the problem … and [its] not getting fixed,” she said.Throughout the book, Quadlin and Powell note how quickly public opinion had changed on same-sex marriage in a short amount of time. Powell, who has studied this change in opinion, noted that Congress just recently passed a bill protecting same-sex marriage with bipartisan support. In 2010, Gallup reported 28% of Republican support same-sex marriage. In 2021, the percentage rose to 55%.While Republicans have largely been against Biden’s student loan forgiveness plan, there is some evidence that there could be Republican support one day. In 2014, Tennessee, under a Republican governor, created a scholarship program for free community college – an initiative that is still thought to be too radical at the federal level.“We’ve had examples of bipartisan support. Education is one of those areas that people believe in – the American Dream, that people can be able to have the education they need to have a fulfilling life and successful career,” Powell said. “It’s hard to envision the changes in the past year without the dramatic change in public opinion that occurred in a really short period of time.”TopicsUS student debtHigher educationUS politicsRepublicansDemocratsBiden administrationDebt relieffeaturesReuse this content More

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      Young voters blocked the ‘red wave’. Biden must deliver on student debt cancellation | Astra Taylor

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      Young voters blocked the ‘red wave’. Biden must deliver on student debt cancellationAstra TaylorBiden acknowledged that student debt relief helped motivate ‘historic’ turnout. But we have yet to see a penny of actual relief For years, advocates like myself have been saying that canceling student debt should be a political no-brainer. In addition to being economically smart and ethically just, it would energize voters – especially younger ones.Tuesday proved us right. Voters under the age of 29 broke for Democrats in overwhelming numbers, helping turn the much-feared Red Wave into a Red Trickle. In a speech on Wednesday night, President Biden acknowledged that student debt relief played a big role in motivating the “historic” turnout of young people, alongside the issues of climate change, abortion and gun violence.On Twitter, the White House chief of staff, Ron Klain, made a similar point, saying that President Biden “kept his promises to younger Americans (with action on climate change, student loans, marijuana reform, etc), and they responded with energy and enthusiasm”.The problem is that Klain’s comment isn’t totally accurate. Young people did indeed respond with energy and enthusiasm – to at least one promise that is, to date, unfulfilled. Almost three months after Biden’s cancellation program was announced, not a single person has seen a penny of relief.And now they may not ever see relief – unless Biden acts. On Thursday night, a Trump-appointed judge in Texas struck down the student loan cancellation program. This hyper-partisan decision will hold unless Biden fights back. Fortunately he has the legal tools to do so.The stakes are too high, and margins too tight, for the White House to not follow through on this essential commitment. On Tuesday, debt relief almost certainly played a decisive role in key races, including Senate races. Consider Pennsylvania, where cancellation champion John Fetterman beat back the reactionary Dr Oz. In Arizona, Mark Kelly, another proponent of cancellation, exceeded expectations. Not so for Ohio Democrat and Senate hopeful Tim Ryan, who strongly opposed Biden’s cancellation plan and lost to the Trump impersonator JD Vance. Likewise, in North Carolina, the Republican senator Ted Budd trounced Cheri Beasley, who waffled on debt cancellation and, it seems, paid a price.Ryan’s and Beasley’s cancellation-averse approach was the one many aspiring soothsayers recommended. Ever since Biden took office, professional pundits have vehemently insisted that canceling student debt would turn off middle-aged, middle-of-the road Democrats, when in fact it drew young people to the polls. (Political commentator David Frum, a man who has made his career being wrong about everything, at least admitted he was wrong about this: “I thought student debt relief was bad policy and bad politics. I still think it bad policy – but looking at the youth vote surge, hard to deny its political impact.”)Looking ahead, there’s no doubt student debt relief will play an outsized role in the 6 December Georgia runoff – a contest that may determine the balance of power in the Senate. Democratic incumbent Raphael Warnock has been a leader in the fight for cancellation, unwavering in his faith that delivering student debt relief is vital to winning the south. Republican challenger Herschel Walker, meanwhile, has denounced Warnock for wanting to help student debtors, who he claims spend their loan money on booze, vacations and video games.A recent government report shows the absurdity of Walker’s lie: many students only receive one financial aid disbursement per semester, often delivered into banking products with fees so high they are pushed into overdraft; students reported that this led to the need to fast, use candles for electricity, or forgo textbooks and gas. In addition, polling shows that 29% of student debtors will spend less on basic needs – food, housing, bills – should the pandemic student loan payment moratorium end.If Biden wanted to give Warnock a boost, he would cancel student debt tomorrow and let Walker deal with the fall out. Imagine the jubilation and appreciation unleashed when tens of millions of people see their balances reduced or entirely wiped out,1,506,100 Georgians among them. Young people might once again turn out in droves, and the Senate might be saved.Biden has the power to make this happen. As things stand, his debt relief plan is sabotaged by bad-faith litigation. While the president has rightly blasted the Republicans behind these lawsuits, the real story is more complicated. Biden could have directed the education secretary to cancel people’s debts using the “compromise and settlement” authority granted in the Higher Education Act of 1965, but instead his administration invoked a different and more limited legal authority. (It was this limited authority that the Texas judge formally took issue with.)They also chose to make borrowers apply for the program, instead of automatically issuing cancellation – a slow-moving process that bought their billionaire-backed opponents valuable time to cook up legal arguments, find plaintiffs, and line their cases up with sympathetic, Trump-appointed judges poised to toe the conservative line.The White House needs to learn from its mistakes and play hardball. Biden could knock the legs out from under these cynical lawsuits tomorrow by extinguishing all federal student loans immediately and permanently using compromise and settlement authority. Now that would generate some real “energy and enthusiasm” – the kind of energy and enthusiasm required to sustain and expand this week’s odds-defying electoral success.This longer view is what motivates Nailah Summers, co-director of Dream Defenders, a group that just successfully mobilized young Floridians to elect Maxwell Frost, who will be Generation Z’s first member of Congress.“Young people and Black folks in the US did what had to be done to keep the Democratic party from utter collapse in the midterms last night and it’s likely that the terrain in 2024 is going to be even harder,” Summers told me. “Crumbs and half measures won’t secure their place in the White House as life in the US gets harder. The party is going to have to take decisive action to make American lives better and they can start with canceling all remaining student loans.”This month, young people held up their end of the bargain. Now Biden must honor his.If Biden allows Republicans and billionaires to sabotage student debt cancellation without a fight, he risks breaking the fragile trust that has only just been built with younger voters. Student debt cancellation can be one of Biden’s signature victories, and a catalyst for a reinvigorated Democratic party, or a self-inflicted failure – an empty promise that risks demoralizing and demobilizing the demographic on which the future of the Democratic party, and arguably democracy itself, depends.
      Astra Taylor is a writer, organiser and documentary maker
      This article was amended 11 November 2022 to reflect legal developments shortly before publication
      TopicsUS student debtOpinionJoe BidenUS politicsDemocratscommentReuse this content More

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      Rightwingers threaten legal action on Biden’s student loan debt relief

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      Rightwingers threaten legal action on Biden’s student loan debt reliefRepublicans seek to challenge loan forgiveness in the courts and are making it a key talking point in the midterm elections Even before Joe Biden announced his recent plan to forgive up to $20,000 in student loans for Americans burdened by their unprecedented debt from higher education, the US president was threatened with legal action by his adversaries on the right.Since the plan was put forward, chatter about a legal threat has grown even louder as Republicans have said they will seek to formulate opposition in the courts. But what remains unclear is how big of a threat those legal challenges actually pose.Student loan forgiveness: what you need to know about Biden’s planRead moreMeanwhile, supporters of debt forgiveness are also working on challenging the political threat to the plan as Republicans have also sought to make the program a key talking point during the upcoming midterm elections.The plan, which includes the forgiveness of federal student loans of up to $20,000 for Pell grant recipients and up to $10,000 for all others, with some exceptions, will provide a substantial amount of relief for the millions of Americans encumbered with student loan debt.Those ineligible for student debt cancellation include individuals who make over the income limit of $125,000 annually, for example.One of the plan’s staunchest opponents is rightwing Texas senator Ted Cruz. He laid out plans for pursuing legal action against the Biden administration in an interview on a rightwing podcast.Cruz explained that he and others would have to actively seek out someone that makes over the income limit – and is thus ineligible for any student debt forgiveness – who would be willing to be the plaintiff in a lawsuit, illustrating how they were “harmed” by Biden’s executive action.Cruz conceded that courts won’t accept just any plaintiff – for example, any taxpayer outraged by Biden’s student loan forgiveness plan. “Well, that may prove a real challenge. The difficulty here is finding a plaintiff whom the courts will conclude has standing to challenge this,” he said.Loan service providers stand to lose from Biden’s plan, but whether or not companies will legally challenge the cancellation and also claim to be “harmed” remains to be seen. Since Biden’s announcement, it was reported that the websites of nearly every major loan servicer crashed or experienced severe traffic-related problems as borrowers scrambled to check the latest status of their loans or get more information.Jim Hawkins, a law professor at the University of Houston and an expert in lending law, said Cruz is right to worry about the amount of work it will take to sue the Biden administration for student debt cancellation.He said: “One problem is identifying a plaintiff who has standing to sue. Who got hurt from loan forgiveness? I think the Republicans will have to work to find someone who was injured in order to sue them.”But while it’s unlikely that Republicans will find a plaintiff who has standing, Hawkins said it’s not impossible.“There’s uncertainty until a court makes a decision interpreting a law or applying the law to the facts of the specific case,” Hawkins said. “So for a lot of people, it’s going to be up in the air until we have decisions from courts.”Another uncertainty is how far some are willing to go to question the constitutionality of Biden’s use of executive authority to cancel the debt. Biden invoked the 2003 Heroes Act in order to cancel student loan debt, which gave the secretary of education authority to make changes to any provision of the law applicable to student aid programs in the aftermath of the September 11 attacks.Hawkins said the Heroes Act “has broad language, giving the president power. But it might be a bit of a stretch to think that the act written in response to 9/11 applies to Covid. It applies to anyone affected by an emergency. The question is, how much authority does that give Biden?”Hawkins said there is a chance a court could say the act is more narrow than Biden thinks. Cruz and others argue student debt cancellation is an overreach of power, despite Trump invoking the same act to pause student loan payments at the start of the pandemic.Biden’s secretary of education, Miguel Cardona, sought to clear up confusion by publicly releasing a legal opinion from the Department of Justice that states the Covid-19 pandemic qualifies as a national emergency.One speculative lawsuit has already been launched by an Oregon homeowner who once ran for the US Senate as a Republican. Daniel Laschober is arguing both that Biden overstepped his authority and that as a homeowner he will suffer damages because the program could stoke inflation and raise interest rates on his mortgage.But the rightwing pushback over student loan forgiveness is also a political fight in the court of public opinion, and one where supporters of the program are also gearing up to have their say, especially when it comes to false narratives pushed by the right that the program will largely benefit an elite class of people.That is certainly the tone of the Republican response so far. Ron DeSantis, the far-right governor of Florida, argued that Biden’s student debt cancellation plan benefits members of high society. He said: “It’s very unfair to have a truck driver have to pay back a loan for somebody that got like a PhD in gender studies. That’s not fair. That’s not right.”DeSantis joined 21 other Republican governors across the country to publish a joint letter condemning Biden’s plan to forgive student debt. “We fundamentally oppose your plan to force American taxpayers to pay off the student loan debt of an elite few,” the letter read. Astra Taylor, a film-maker and activist who founded Debt Collective, a union of debtors, said that those condemning people with student loans fail to take into consideration that these borrowers are in reality anything but the elite. They are usually working-class Americans, many of whom went into debt for trade school or community college rather than for a top university degree.“I’m just not sure that they’re playing to the base the way they think they are,” Taylor said. “Obviously, [Republicans] are very invested in a kind of anti-intellectual, anti-academy politics. But people go to trade school and get student debt. People go to cosmetology school and get student debt.”Taylor is right. Ten per cent of those with student debt received a professional certificate from institutions like trade schools, according to Upjohn Institute labor economist Aaron Sojourner.In an interview with Axios, Sojourner said: “Many Americans understandably, but mistakenly, assume that the vast majority of student loan debtors have four-year degrees, when in fact about half do not.”And on the whole, 90% of relief dollars will go to people making less than $75,000 annually, according to the Department of Education.So far, polling shows Republicans may not have found the winning issue some of them might think they have. Surveys on the plan usually show majority support for it and two recent polls – by Quinnipiac and the Economist/YouGov – have registered voters backing it by 51% and 52%, respectively. That support rises among Latino and Black voters and those aged under 50.While Taylor, like many others across the country, believes the student debt forgiveness plan doesn’t go nearly far enough, she said she understands its significance and that it is worth fighting hard for.“My position is very clear in that I think all student debt should be lost and we should return and expand the model of higher education that was the standard in this country a few generations ago,” she said. “But on paper, it’s enormous. It’s an incredibly significant political victory for progressives.”She added: “We’ve had all sorts of debt relief over the last decade plus, for more affluent people and corporations, so I think this is really significant in terms of showing that for working class and middle class people, debt can also be canceled. It’s just the beginning of a real reckoning with the scale and scope of the student debt crisis.”TopicsUS student debtUS politicsJoe BidenRepublicansUS student financefeaturesReuse this content More

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      The lesson from Joe Biden’s student loan forgiveness? Go big or go home | Hamilton Nolan

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      The lesson from Joe Biden’s student loan forgiveness? Go big or go homeHamilton NolanBiden will get backlash from Republicans whether he does a little or a lot – so you might as well do a lot Politics is not like regular life; it’s worse. Things that are held as treasured virtues in the normal world are often political liabilities. We’ve all just been served with a shining example of how reflexive moderation – which is good when estimating measurements for recipes, or having drinks at a work party – becomes the tendency of a political fool. The wellbeing of countless Americans has long been sacrificed on the altar of moderation by the Democratic party, and all the Democrats win for it is maximal disgust.Share your views on Biden’s student loan forgiveness policy for millionsRead moreThis week Joe Biden announced that he will be canceling $10,000 in federal student loan debt (or $20,000 for Pell grant recipients) for people who earn under $125,000 a year. This policy is both unquestionably wise, and unquestionably a half-measure. There has long been a movement on the left to cancel all student debt, and even Democratic stalwarts like Chuck Schumer and Elizabeth Warren were pushing for the cancellation of $50,000 in debt. Joe Biden was pulled towards this action, in large part, by his inability to get other, bigger economic policies through Congress. But even in taking unilateral action, he has succumbed to the overwhelming tendency of Clintonian Democrats to cut any good policy idea in half and call it political wisdom.And what did Biden earn for his unforced, personal decision to keep this program much smaller than it could have been? Within a day, mainstream Republican pundits and politicians called the policy an executive “coup”, “an abuse of the law”, “utterly revolting”, and a “fuck you to every financially responsible person”. Republicans in Congress screeched that it would cause wild and uncontrolled borrowing, and Mitch McConnell, predictably, called it “socialism”.In other words, Republicans – whose party has spent the past 50 years single-mindedly crushing worker power and funneling all of our nation’s proceeds to the rich – suddenly became very concerned that this policy might be regressive in its benefits. The party that prevented the passage of any broader measures that might have relieved not just student debt, but housing and healthcare costs and poverty wages, is now alarmed that this policy does not address all of those other matters. Republicans have taken one day off of trying to eradicate labor unions and destroy public education and put poor people in jail to theatrically moan about how this is unfair to all of the hardworking folks who didn’t go to college. Whatever.Here is the very simple lesson to take from this episode: you will get all of the backlash whether you do a little, or a lot. So do a lot. What is this loan forgiveness policy really driving at? It is, at its core, one small step on the road to a world in which America has free, high-quality, public higher education for all. We are not dreaming of a world in which student loan debt is somewhat smaller, but rather a world in which student loan debt does not need to exist. That is the goal we should reach. When, after many years of struggle, we get a chance to take a step down that road, make it a big step. To do otherwise is stupid. By slashing the debt relief number far down from what it could have been, Biden is acting like a man who is forced to rush into a burning building to save two kittens, and decides to break it up into two trips so his arms don’t get tired. Hey, buddy: let’s just get this thing done all at once.Incredibly, this basic truth of how politics works seems to forever elude Democrats. The issue of healthcare is an obvious parallel here. Free public healthcare – Medicare for all – is the intuitive, compassionate and eminently achievable goal that all of our peers in the wealthy western world have already built. So naturally, that goal is considered a fringe position in the Democratic party. Instead, Democrats have spent decades in the excruciating process of building and defending Obamacare, an insufficient half-measure that has cost the same amount of political capital and prompted the same amount of political opposition that Medicare for all would have, while leaving in place most of the ruinous flaws of our broken system. This resolute determination to never propose full solutions to our problems is proudly embraced by Democratic leadership and packaged into campaign ads as “reasonableness” and “moderation”.Of all of the perversities in American politics, the most frustrating is its conviction that idealism is a weakness. The conflation of defeatism with wisdom means that expressing the belief that we should just do what needs to be done in order to make the world a just place is enough to convince the political world that the speaker is a rube. This is ironic, because the very opposite is true, as anyone who has ever accomplished something ambitious can tell you. There is nothing more foolish than negotiating against yourself. That woeful quality has long been the hallmark of Democrats, who are like timid children who long to express themselves but are too scared to ever stray from the tepid crowd.What do we need? Public ownership of public goods for the public benefit. Public education, public healthcare, public transportation, public art. We are all the public, and helping the public is good. That’s called socialism, folks. Republicans will accuse the Democrats of it no matter what. Might as well stop shuffling along, and get right to it.
      Hamilton Nolan is a writer based in New York
      TopicsJoe BidenOpinionUS politicsBiden administrationUS student debtDemocratscommentReuse this content More

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      Biden says his student loan relief is ‘life-changing’. Will it fix the system’s inequities?

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      Biden says his student loan relief is ‘life-changing’. Will it fix the system’s inequities?The initiative’s income cap and unclear bureaucratic process could fail to address the racial disparities that already exist01:15As Joe Biden announced the details of his plan to help those with student loan debt, Kat Welbeck wrestled with the idea. For millions of Americans, the unprecedented relief would be “life-changing”, especially for low-income and Black and Latino Americans, who are disproportionately saddled with decades-long debt, she said.But the plans’ income cap on who can receive cancellation, and its unclear bureaucratic process for Americans seeking debt relief could perpetuate the inequities that underpin the nation’s student loan system, Welbeck, director of advocacy and civil rights counsel for the Student Borrower Protection Center, said.Student loan forgiveness: what you need to know about Biden’s planRead more“While a $10,000 cancellation is so meaningful for millions of student loan borrowers, there’s a lot that’s still to be done to fix this student debt crisis,” Welbeck says.On Wednesday, the White House released its long-anticipated plan on how to tackle the nation’s mounting $1.6tn student loan debt, accounting for more than 43 million people, with almost a third owing less than $10,000, according to federal data.The initiative would cancel up to $10,000 in debt for borrowers who earn less than $125,000 a year ($250,000 for married couples). Borrowers whose low income level qualified them for a Pell Grant will receive up to $20,000 in relief. The White House also extended a pause for “one final time” on student loan payments through January.The White House has projected that the plan would eliminate full debt balances for 20 million Americans and that 90% of debt relief dollars would go toward people with incomes less than $75,000. The White House also touted it as an effort to “advance racial equity”, pointing to its targeted relief for those who received Pell Grants. Officials noted that Black Americans were twice as likely to receive such grants as white Americans.Senator Elizabeth Warren, who, like others, have advocated for cancelling at least $50,000 in student debt, praised the administration’s plan as “transformative for the lives of working people all across the country” and would “help narrow the racial wealth gap among borrowers”.Still, some argue that the cancellation of just $10,000 for most borrowers would fail to substantially affect the racial disparities within the student loan system. Black and Latino borrowers disproportionately come from poorer households and, as a result, take on more debt than white Americans. At the same time, white American households have, on average, 10 times the wealth of Black households.Derrick Johnson, president of the NAACP, which had been advocating for cancellation of $50,000, wrote in an op-ed that Biden’s plan would “do little to help” Black Americans who, on average, hold nearly twice as much student debt as white borrowers. “Canceling just $10,000 of debt is like pouring a bucket of ice water on a forest fire,” he said. Canceling $10,000 in student debt when the average white borrower is $12,000 in debt, while Black women hold on average over $52,000 isn’t just unacceptable, it’s structural racism.— Nina Turner (@ninaturner) August 23, 2022
      The emphasis on income in the White House’s cap represents a possible barrier that could exclude borrowers of color who meet the income threshold yet their families lack the wealth to tackle the debt, Welbeck says. A June 2020 report from the Student Borrower Protection Center found that 90% of Black Americans and 72% of Latino Americans took out student loans, a far cry from the 66% of white Americans.And 20 years after graduating college, the median Black borrower still owed 95% of their original debt while the median white borrower paid down the same amount. For Latinos, after 12 years, they owed 83% of their original debt, more than the white borrower over the same time.Given that Black and Latino Americans typically earn less than white Americans, borrowers of color will start from behind without the intergenerational wealth available to reduce the debt they already hold.“So if you’re already coming from a lower-wealth household, you now have more debt, and then that cuts into opportunities for you to build wealth for the next generation,” Welback says. “You might see higher-income households that are Black or Latino, but that does not take away the fact that you still have those wealth disparities.”Student loan forgiveness: what does it mean for the US debt crisis?Read moreHistorically, the education department has complicated access to loan forgiveness through the programs it creates, such as the Public Service Loan Forgiveness program for non-profit and public service workers seeking relief and the borrower defense program for those who were defrauded by predatory for-profit colleges.The White House initiative does nothing to address private student loan debt, which accounts for more than $140bn in debt. Although Latino borrowers were more than twice as likely to report struggling with private student loan debt as white borrowers, Black borrowers were a staggering four times as likely to fall behind on private debt payments, according to the Student Borrower Protection Center.An application process could make it harder for people to access relief, Welbeck says. But recent decisions by the education department to automatically discharge debts for hundreds of thousands of students who attended ITT Technical Institute and Corinthian Colleges, two for-profit college chains that imploded, show that a widespread relief without bureaucratic hurdles is possible. The two debt cancellations at the for-profit institutions amounted to roughly $10bn affecting more than 700,000 students.“The student debt crisis is a result of the longstanding history of racial discrimination that we have in our country, and it continues to perpetuate them,” Welback says. “So until we address student debt as a civil rights crisis, we’re not going to be able to make meaningful gains toward equity.”TopicsUS student debtBiden administrationUS student financeRaceJoe BidenUS politicsUS educationnewsReuse this content More

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      I’m 65 and have $300,000 in student debt. I and other older debtors are going on strike | Lystra Small-Clouden

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      I’m 65 and have $300,000 in student debt. I and other older debtors are going on strikeLystra Small-CloudenWe know that this debt won’t go away – for us or Americans of any age – unless we stand up and fight it On Wednesday, the White House announced its long-awaited debt cancellation plan. Joe Biden will erase $10,000 for borrowers who make under $125,000 a year, and $20,000 for Pell Grant recipients. The federal student loan payment moratorium will also be extended until December 31.Sadly, this news does almost nothing for me and millions of others. It falls far short of what economic and racial justice demands. That’s why I have joined over 250 people, all over age 50, who are pledging to strike our student loans when payments resume. Our numbers are growing every day.Most people think of the student loan crisis as a problem affecting young people. As a 65-year-old woman, however, I am actually among the fastest-growing demographic of student debtors. We know that this debt won’t go away – for us or Americans of any age – unless we stand up and fight it. That’s why we’re prepared to strike.I have over $300,000 in student debt. The burden is negatively affecting my emotional and physical existence. You may wonder how it is possible to accumulate such a large amount of student debt, so let me explain.As a single, Black, immigrant woman, I always told my four kids that education was the most important part of their upbringing. But it didn’t take me long to realize that I was hardly following my own advice: I was not comfortable advising my children to achieve the highest level of education when I myself didn’t. I am a mentor, educator and adviser to my kids. I wanted my mentorship and advice to be built on a strong educational and intellectual foundation.In January 2010 I began a doctoral degree program in human resources management. My biggest mistake was enrolling in a for-profit school. I did achieve my academic goals in August 2016. That feeling of success was short-lived, however. After graduation, I had to begin repaying student loans.My school didn’t play fairly with me while I pursued my doctoral degree. The administrators changed the length of my program from three to six years. They actively steered me away from my research interest in the effects of slavery and globalization, adding more time to my program of study. Meanwhile, I continued to pay. From an initial loan payoff of $75,000 per year, my debt rose to $300,000.Then my children started college. Because of my own debt, I was unable to qualify for parent loans to help my younger two children pay for their undergraduate studies. I was also unable to plan for the future. I exhausted my retirement funds trying to repay these loans and have not been able to replenish them because, as a good citizen, I prioritized repaying my student loans above all else.Biden must cancel all student loan debt, including for those with graduate degrees | Derecka PurnellRead moreMy debt is an economic drain but it’s also an emotional one. I have been stressing over it for 12 years now, and the stress has taken a very real toll on my physical health. I suffer from hypertension and high cholesterol and recently had emergency surgery to remove my gall bladder due to digestive issues caused by unnecessary stress. I spend a lot of time thinking about the fact that I am 65 years old, with projected loan repayments for the next 21 years of my life – meaning I will be 86 when I pay them off. When you are burdened by student debt, there is no quality of personal or work life. You are stuck at home – foregoing vacations, visiting family and friends, professional conferences, everything.Like so many debtors, I’ve found it hard to see a way out. As an older person, I’ve often felt particularly alone as a student debtor. When I learned of the Debt Collective, the nation’s first debtors’ union, I realized I was not alone. I found others with similar stories and experiences, including many other older people. As a group, we understand that we’re stronger together. And we are taking action. If Biden won’t cancel our debt, we will go on strike.I joined the 50-over-50 debt strike to make sure that the world knows that older debtors exist, and that we are growing in number. Because student loans are structured as a debt trap, there are more and more older debtors every day. My fellow strikers and I can’t pay – and won’t. We shouldn’t have to take money from our retirement to pay for college. I accumulated this massive student debt because of the inhumane policies of lending institutions and for-profit schools, and the lack of support and intervention from government agencies. Biden has the power to cancel student debt for all of us, automatically and immediately. Why isn’t he using it?I am pleading with Joe Biden: please make things right – by cancelling all student debt.TopicsUS politicsOpinionJoe BidenBiden administrationDebt reliefUS student debtHigher educationHigher education policycommentReuse this content More