President Joe Biden’s latest relaxation on student debt to gain votes may be convenient for student loan borrowers, but considering it’s being funded by taxpayer money, it is unfair to regular Americans who are struggling with inflation.
Recently, President Biden has extended the pause in federal student loan payments to August 2022. This has been the 7th extension since 2020 to decide if taxpayer money shall be used to pay the debt entirely. Student debt payment was a key promise in the previous election campaign for Biden, and with the midterm elections just ahead, it’s likely to tip the scales in his favor again.
According to a few Democrats, there should be massive debt cancellations for students instead of a pause. However, this is already putting a burden on taxpayers due to the 0% interest rate on the student loans and the inflation that reached 8.5% in March.
The borrowers of student loans are already benefiting from inflation as their loans have devalued, compared to their original value. The more extensions Biden gives to the students, the less they have to pay eventually. As a result, the extensions on student loans are causing more losses to the taxpayers.
Many believe that these extensions are special privileges that benefit people who took loans to go to college at the expense of those who didn’t. The people who choose to work instead of going to college lose money compared to those who don’t even get jobs after their fancy art degrees.
Biden defended these extensions by claiming that resuming payments would financially weaken Americans. However, high-income taxpayers are mostly footing the bill even though they weren’t as economically impacted during COVID-19. Biden’s payment pause and his other weak policies actually make the financial problems that they claim to be fixing.
Pausing payments make Americans more financially vulnerable as they are already struggling with increased grocery and gas prices. The Biden administration should revive the whole economy instead of giving handouts to a certain few.
The decisions made by the Biden administration show they do not have the foresight to handle the student loan issue properly. Many believe the administration should stop giving extensions and privileges to highly educated members of the population.