US President Joe Biden’s move to waive college loan payments for millions of Americans drew criticism from some of his fellow Democrats, especially US representatives facing tough re-election contests on Nov. 8.
The plan was thought by the White House to provide an election-year gift to those grappling with monthly loan payments, while boosting prospects for Democrats in November, when Republicans are favored to win back control of the US House of Representatives. Senate control also is at stake.
Many Democrats embraced the US$10,000 per borrower loan forgiveness plan, including some in close races, such as US Senator Raphael Warnock of Georgia.
Photo: AFP
However, Biden has managed to anger some of his party’s most embattled lawmakers.
“We should focus on making higher education and technical schools more affordable in the first place, and expose students to trades and apprenticeships that help them get good-paying jobs... without a mountain of debt,” said US Representative Sharice Davids, the lone Democrat in Kansas’ congressional delegation and one of the most endangered in this election season.
That was one in an unusual series of rebukes to a president from lawmakers in his own party, complaining that Biden’s program is both poorly targeted and plays into Republican accusations of being a “big-spending” party.
The White House has dodged questions about the cost, citing unknowns such as how many borrowers would take advantage of the program.
Some non-governmental groups, however, have placed the price tag in the range of US$300 billion to US$600 billion.
“We should be focusing on passing my legislation to expand Pell Grants for lower income students, target loan forgiveness to those in need and actually make college more affordable for working families,” said Democratic US Senator Catherine Cortez Masto, a first-term senator from Nevada, one of a handful of battleground states that will decide the Senate’s fate for the next two years.
“I’m happy for the folks who will get relief from this policy, but this is a one-time Band-Aid that doesn’t get to the root of the problem,” US Representative Elissa Slotkin of Michigan said.
Instead, the administration should pursue reforms such as including a cap on interest rates on student loans, she said.
Those on the left wing of the Democratic Party applauded Biden’s move while calling for even more robust initiatives, such as free higher education.
US Congressional Progressive Caucus chair Pramila Jayapal had urged Biden to cancel US$50,000 in student loan debt per borrower, although she said his move was a step in the right direction.
Democrats in recent weeks have been energized by a series of legislative wins, including a bill addressing climate change and lowering some prescription drug costs for senior citizens, allowing them to claim progress in the war against inflation.
The non-governmental Committee for a Responsible Federal Budget, which describes itself as non-partisan, said that its initial review suggested Biden’s student loan plan is likely to increase inflation.
The plan, which could likely face a court challenge, gave Republicans a new opening as they said it would stoke inflation while helping many wealthy borrowers.
“Thanks to Tim Ryan and Joe Biden, Ohio workers are paying off the loans of Harvard law students. If this seems unfair and illegal, it’s because it is,” Republican US Senate candidate JD Vance wrote on Twitter.
Ryan, a Democrat who is running against Vance, was similarly critical.
“Instead of forgiving student loans for six-figure earners, we should be working to level the playing field for all Americans, including an across-the-board tax cut for working and middle-class families,” Ryan said.
University of Virginia Center for Politics director Larry Sabato sees a silver lining for the Democratic Party.
Biden’s move could motivate young Democrats to show up at the polls in November, adding to the energy created by the US Supreme Court’s June decision to eliminate a nationwide right to abortion, he said.
“The abortion decision is 10 times more important than student loans, but student loans may augment the level of enthusiasm among young people,” he said.
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