As vice president, Joe Biden advocated strongly on behalf of student loan forgiveness. Now, as the Democratic nominee for president, many political commentators are discussing whether or not his student loan forgiveness program will help him win reelection in 2022 or if it will hurt him and lead to Republican wins in Congress. But one politician seems to think that there’s little possibility that Biden’s student loan forgiveness policy could cause him problems down the road. Who is he and why does he believe this? Read on to find out more about Joe Biden’s chances for reelection in 2022 and whether or not his student loan forgiveness policy may hurt him then.
The political landscape looks different than it did back then
Since Republicans control the White House and both chambers of Congress, it is highly unlikely that a bill will pass to forgive student loans. Though it was not an act of Congress that made this happen, it was done through an executive order, signed by President Obama.
Ted Cruz released a statement on Tuesday saying that he believes there is a real risk of Joe Biden benefiting from forgiveness because his political party will be perceived as more generous with student loan forgiveness than Republicans. He went on to say that he thinks they should be concerned about making sure they are being tough on colleges who try to take advantage of federal funds, rather than providing universal forgiveness.
The recent history of federal student loan reform
Ted Cruz says there’s a ‘real risk’ that Joe Biden’s student-loan forgiveness will help Democrats in the 2022 midterm elections. When Barack Obama took office, he delivered on his campaign promise to provide relief for middle-class and low-income college students by issuing an executive order eliminating fees for many types of federal student loans. From 2008 to 2012, about two million people were able to save more than $1 billion in loan payments thanks to this measure. If a Democrat becomes president again and adopts a similar policy that targets lower income Americans and the middle class, it could be popular among voters who are struggling with debt from skyrocketing tuition costs – even though these particular beneficiaries would not have access to private lenders or scholarships as wealthy families do.
What exactly is being proposed by Biden
As of now, there is no definite answer to this question. One thing we do know is that many people with student loans are either behind on their payments or are unable to pay them at all. It would not be surprising if a significant number of these people have lower-than-average incomes, thus reducing the likelihood of voting for Republicans. However, considering that there will be little time for implementation until next year and that so many people need forgiveness and cannot afford it, it is highly unlikely that Democrats will benefit from a change in policy even if they did intend to.
Is Income-Based Repayment (IBR) helping or hurting those in financial distress?
It is difficult to say whether IBR is helping or hurting those with student loans. With IBR, the amount owed decreases each month, but there is no defined payment amount. A decrease of $30 a month could be enough to give some people hope, but it may not be enough for others. This unpredictability does not work for everyone.
The amount owed with IBR is dependent on income. A person making $40,000 a year will have $0 due per month while someone making $50,000 will owe $60 a month. For those with high incomes of more than $130,000, their monthly payment would increase by 1% for every additional dollar earned until they reached the maximum payment of 15%. The Obama administration also believes that IBRs are fair and affordable for all. His Department of Education stresses that it does not matter how much money you earn or how large your debt load is as long as you pay what you can afford to pay each month. Their website even allows users to find out if they qualify based on their salary and debt load compared to other borrowers’ stats.
What do you think about Biden’s proposal for universal income-based repayment?
Though this proposal by Vice President Joe Biden is a great idea, it will not solve all of our economic problems. He argues that making college tuition free for working-class and lower-income families could allow parents to pursue their professional aspirations without worrying about the cost. Meanwhile, students would be able to graduate debt-free, fulfilling a campaign promise by Senator Bernie Sanders. Finally, according to an unpublished study commissioned by Senator Cory Booker and shared with The New York Times, more than 40% of Americans currently owe $50,000 or more in debt — many are still paying off loans they took out decades ago.