(DailyVantage.com) – According to the White House, the federal government will transfer approximately ten million student loan debts to taxpayers as part of President Joe Biden’s campaign promise to forgive American student loans. Some political experts believe Biden plans on using the student loan transfer to receive more support from younger voters, as his popularity has declined since his initial presidential campaign. Despite Biden’s plan to reduce debt for millions of students, the president struggles with gaining support from younger American demographics.
While the White House claims the debt transfer will help millions of students save on expenses, taxpayers aren’t so lucky. The loan debt conveyance could cost taxpayers around $5,000 per student featured in the debt transfer, totaling approximately $5 billion. The newest debt transfer is the latest in a string of attempts by Biden to reduce the total amount of American citizens who owe debt on student loans and would increase the total number of citizens with reduced loans to 23 million.
While discussing the loan transfer, Biden’s secretary of Education, Miguel Cardona, claimed that the new policy would help fulfill President Biden’s 2020 campaign promises. According to the Biden administration, Biden hopes that by reducing millions of student loans, he can gain more support from college-aged Americans who currently don’t support his presidency. Cardona claims that Biden has removed a substantial portion of millions of Americans’ student loan debts and intends to push forward despite the potential legal challenges to the debt transfer.
Biden initially planned on forgiving all American student loan debt, but the Supreme Court intervened and claimed that Biden lacked the authority to make a unilateral debt forgiveness policy. Biden then pivoted to forgiving student loans by transferring the debt from students to taxpayers, totaling $138 billion. While Biden campaigned to forgive every American college student’s debt, his latest announced debt transfer only helps borrowers who meet specific requirements.
The new debt transfer will affect loan takers who currently owe more than they did once they began repaying their loans, people eligible to have their student loans forgiven, and people who began repaying their loans at least 20 years ago. The transfer will also remove debt from loan borrowers who cannot make their required repayments due to financial struggles to reduce the hardship associated with student loans. While Biden believes the new loan transfer will help him gain support from younger American audiences, some political experts believe the new policy would alienate taxpayers who support Biden due to the increased burden on American citizens.
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