Republicans in Congress have renewed attacks on President Joe Biden's plan to forgive student loans for millions of Americans. Since the beginning of the COVID-19 pandemic, payments and collections on defaulted student loans have been "paused" under the CARES Act and various pandemic relief laws. Even before March 2020, various proposals had been proposed by Democrats to forgive student debt entirely for certain Americans.
We asked two professors and authors of ALM's Tax Facts with opposing political viewpoints to share their opinions about renewed GOP attacks on efforts to cancel student debt.
Below is a summary of the debate that ensued between the two professors.
Their Votes:
Byrnes
Bloink
Their Reasons:
Byrnes: Canceling student loans would be the equivalent of a massive wealth transfer to the educated and elite in this country. We're talking about those Americans who have had the privilege of obtaining a college education — and who are currently enjoying the benefits of increased earning potential in a labor market where employees hold unprecedented bargaining power. The entire idea of simply forgiving student debt for Americans who have enjoyed the benefits of their college and graduate degrees is simply absurd.
Bloink: Millions of Americans are burdened with an unprecedented amount of student debt — and we all know that a college degree is no guarantee that the recipient will ever have the earning potential to repay those loans and still build a retirement nest egg, own a home and provide for a family. It's time for the administration to step up and keep the promises it made to the Americans who voted this regime into office.
