Senate Democrats Push Plan To Cancel Student College Loans Up To $50,000 Per Student

We have been discussing how both parties in Washington have been spending wildly for years in pushing the country to unprecedented and crippling debt levels.  We recently passed the “red line” of 106 percent of our GDP.  The roughly $27 trillion debt has not however deterred members who continue to push proposals to tack on trillions.  That was the case yesterday when Sen. Chuck Schumer and Elizabeth Warren are calling on President Trump to cancel $50,000 in federal student loan debt next year. Some 43 million Americans hold more than $1.6 trillion in federal student loan debt.  Such proposals may have merit but my concern is over the lack of any plan on dealing with the debt as well as the fact that this massive increase would be done by executive order.

The proposals may be a foreshadowing of a greater push to use unilateral executive powers under Joe Biden if he wins the election. The senators insisted that the Secretary of Education has “broad administrative authority” granted by Congress to cancel federal student loan debt under section 432(a) of the Higher Education Act of 1965. Thus, they are arguing for the president to simply wipe out the debt by taking “executive action to broadly cancel up to $50,000 in federal student loan debt.”

I have long been critical of such unilateral executive actions to order massive increases in debt or the negation of federal laws. We need a serious debate over the leveraging of the future on the mounting debt for this rising generation. I am worried about this college debt but I am also worried about these students facing decades of debt that must be paid off by the government. We need a comprehensive debt plan. Politicians are casually referring to trillion dollar increases in a variety of different packages. Many long-standing goals are being refashioned as “stimulus measures” but they would pile more debt on an economic recovery that could already be difficult after the pandemic.

137 thoughts on “Senate Democrats Push Plan To Cancel Student College Loans Up To $50,000 Per Student”

  1. New to the huge list of things that are racist: Betthoven’s symphonies. Also 2+2 = 4 reeks of patriarchy and white supremacy.

    Soon to be racist: Paying your bills.

    1. Princeton is racist according to the university president. Now he has triggered a federal investigation into the racism. The funny thing is that the place has ginned up mictrooagressions so much it might be easy to find students happy to confirm to investigators that the place is racist.

  2. This proposal is a mess. As noted, those who worked hard to avoid college debt get punished for having been responsible. Future students, who have yet to accumulate debt, get to pay for the debt of the current loan holders, as well as their own expenses. The universities, who profited off of the students by encouraging the debt, walk away with full pockets. How about we get the taxpayer out of the cycle, and push the responsibility back onto the universities and colleges. If their educations are so worthy, they should stand behind them, and be responsible for the lending to the students. Their students can’t get jobs? Who’s fault is that? The government thought it was getting a way to profit when it took over the loans, not so wise of a decision in hindsight.

  3. Canceling the entire debt does not seem fair BUT a good solution would be to allow people to pay back ONLY what they borrowed. I borrowed $11,000 but now I owe $33,000 from interest!!!!!I think it is unfair to tack on interest like this!!!

    1. What part of a loan do you not understand. You signed it not me. You pay for your choices be a grown up and pay your own bills.

  4. Reminds me of the real estate bubble/crash & sub-prime rate deals where granny could buy a multi-million dollar home on a fixed income.

  5. I was shopping at my local grocery store yesterday when I noticed a new brand of prepared salads were being offered. Luckily for me the stockman working in the area let me know the reason for the change in brands- better product tracing essentially. We haven’t tried the new brand yet, but the 65 year old stockman and I got to talking about the costs of food these days going up a bit. A couple of years ago he generated a little cash flow from his savings to offset the higher food prices. He shared with me that he was hit with an $1800 penalty from the social security office for working to many hours (making to much money it total) last year.

    So if the senate or white house are concerned about senior citizens they might want to check into how the low interest rate policy is affecting a segment of our seniors. They might want to consider being like Procter and Gamble and remember that the “rules were made to be remade #headstrong.”.

  6. Cancel the debt means no one owes anything on that particular debt. Cancel the future loans? What does this “plan” entail?

  7. And what about those of us who worked 2 jobs, lived at home, and rode a bicycle while going to school so we wouldn’t have to borrow? Can I ASSume we will getting a refund? Or is this only for the lazy?

  8. A lot of critics with comments. But no alternative proposals. Must all be Democrats 😉 No doubt, Elizabeth and Chuck are just like players in an SNL skit. She failed miserably in her bid for the Presidency, and probably ruined Bernie’s chances – that is, ANY chance for a win over Trump. And they do make me sick. However, everyone misses the point – and it’s a “weird” one for you lot of entitled judgers – the notion is “forgiveness” of student debt, and it’s rooted in the idea that one should not be penalized for trying to better oneself. Kind of like how an income tax punishes people for making an income (the counter proposal being a tax on outlay, thus punishing the buyers). So, all of the sketchy comments and calculations about well-funded middle class (the middle class disappeared around 1970 – you may have missed that memo), shirking their financial responsibility, while they party in Brazil. The middle class is in fact the debtor class – they have no money, just debt. So, the more we keep them in debt, the weaker the actual economy becomes. No doubt they are frivolous libertines! Judge away. Or, grow up, and think like a thinker. As for college in the US, it’s worth about as much as a junior high school in Germany, but due to the corporation of higher education, it’s just an extortion racket. So, the actual value to debts ratio is sad. Finally, Bernie actually introduced HIS college loan erasure plan WITH a concrete payoff date, on a concrete amount, and a method to pay for it. The plan, priced at $2.2 trillion over 10 years, to be paid for with a tax on stock and bond trades. Chuck and Liz and Uncle Joe are just copying the first lines…. https://berniesanders.com/issues/free-college-cancel-debt/

    1. My alternative is to allow people to pay only what they originally borrowed……get rid of the outrageous interest that accumulates every year the loan goes unpaid!

      1. Thanks! We need alternatives. Interest is definitely an age-old “scheme” to entice the middle-MAN. But get more radical! Make education free. Reward citizens handsomely for wanting to be smarter!

        1. Make education free. Reward citizens handsomely for wanting to be smarter!

          Also an age-old scheme. Who are you planning on forcing to pay for it?

  9. Should there be some means testing before just giving out a huge birthday present the those who picked stupid majors, didn’t attend many classes, but learned how to riot, cancel, attack, and generally be AS*HOLES?
    I bet if you use facial recognition on the rioters this would means test many many right out of this giveaway.

    1. I would agree if they would serve in the military, or some other service for one year for each canceled $25,000. Put that condition on the proposal and see how many apply?

  10. Just another way to scam the system put fourth by the ultraliberal dum dums.
    I think those students and families who have faces a real financial crisis – but did pay off their loan would be prime for screaming at the dum dums.
    How and why would the dum dum congress reconcile those who have paid off their loan?

  11. As long as the Dems are at it why not return all the money that responsible parents and students have paid in the past. We could limit eligibility back to 1945.

  12. Again, what you’re seeing is that Congress is amply populated with irresponsible sociopathic cretins. They pander to street-level Democrats, among whom there is a critical mass whose conception of political economy consists of an open mouth saying ‘I want’. We have what’s near the world’s most productive private sector conjoined to a public sector that’s beginning to resemble Spain in 1934 conjoined to Argentina in 1974.

    1. Aren’t you the same person who openly admits their entire impression of “street-level Democrats” is formed by Facebook posts? Sad.

      1. their entire impression of “street-level Democrats” is formed by Facebook posts? Sad.

        Who as it happens are my friends and relations living all over the country. Only one of them ever says anything off-script, and in his case it’s limited to his disdain for gun control. He’s otherwise a fanatic. We have Republican friends and relations too. They post almost nothing on political topics.

        1. “We have Republican friends and relations too. They post almost nothing on political topics.”

          This confirms your circle is not representative of Facebook at large, let alone the general populace.

          1. This confirms your circle is not representative of Facebook at large, let alone the general populace.

            This confirms what anyone with a normal social life knows.

        2. part of the reason Republicans don’t post much on politics are the flash mobs of antifa boosters and other creeps online who will swarm with the hate and reprisals

          so here we are under fake names

          though of course they use fake names too. and multiple accounts and the whole 9 yards of wumao tactics

          1. I’ve lost track of the number sock-puppets Peter and Gainesville are using. I think its up to about six, plus their commentary under ‘anonymous’. ‘Brad’ would appear to be a new Gainesville sock-puppet.

          2. My conservative friends on social media seem to survive just fine while posting nonstop Trump memes and Russian propaganda designed to turn Americans against each other. They get tons of positive feedback, in fact. This is why Chicagoland suburbanites shouldn’t claim special insight into what’s going on in “flyover”.

            1. brad, you may be a facebooger. I am not on facebook. this turley blog is a frequent foray into digital communication for me, but I concentrate all my political remarks here.

              I have only such humble insight as I do and most of it comes from the three dimensional world.

              here’s what newt gingrich had to say about social media pressure tactics

              https://americanmind.org/post/the-soros-cover-up/

              1. I always appreciate your cheesy self-deprecation, as if you don’t think you’re hot stuff. Not sure why you’re chiming in on about what happens on FB if you don’t even use it, though.

  13. Some 43 million Americans hold more than $1.6 trillion in federal student loan debt.

    IOW, the mean outstanding loan balance is $37,200. NB, service rates on non-revolving consumer debt run to about 9.5% in this country. Those on federally guaranteed student-loans vary but cluster around 4.3% as we speak. In 2016, about 13% of those with an outstanding loan balance were in arrears. This is a problem, not a crisis.

    1. agreed. problem not a crisis.

      now here would give the Sallie Mae and company some pause: if their loans were dischargeable in bankruptcy like other unsecured loans are

      then they would hesitate.

      but the university mafia don’t want them to hesitate so the law is what it is. most folks dont even realize student debt is non-dischargeable!

  14. No doubt JT was similarly opposed to and spoke out on the budget busting rich boys tax break stimulus bill passed by the GOP and Trump.

    1. Democrats have profited richly from their cabal with the univesity mafia. I suggest we make student loans dischargeable in bankruptcy.

      That would put a crick in Sallie Mae’s neck but it would kick the teeth out of the university dons and their collaborators

      the budget it being monetized anyhow. they’re all MMT now

    2. Allowing people to keep more of what was being stolen from them is different than stealing from others to pay for their decisions.

  15. “It’s not my fault”. Personal accountability has left our society. Everybody receives a trophy. This is a bailout of the elitist institutions whose grotesque tuition has created this mess.

  16. I soo agree we need to get away from entitlements. If you go to college be responsible and pay it back. If everything in life is easy and you don’t learn to be responsible how in the world are you gonna make it in life. Things will turn around for you if you are motivated and are willing to work hard. We can’t put our Country into so much debt. Life isn’t handouts it’s hard work and determination!! I raised my kids like that. That’s how I was raised and it’s served US well. It wasn’t always easy but We can’t depend on the Government to bail us out.

    1. Ok, fair enough, but would you apply that logic to the financial institutions on Wall Street as well that were bailed out by the billions after 2008, and now trillions after the virus? What’s good for the goose, etc.

      1. Ok, fair enough, but would you apply that logic to the financial institutions on Wall Street as well that were bailed out by the billions after 2008, and now trillions after the virus? What’s good for the goose, etc.

        The only institution on Wall Street which actually was bailed out was AIG. Some of the auto industry components were also bailed out. Their headquarters are in Detroit. However, the megabailout went to Fannie Mae and Freddie Mac. They’re headquartered in Washington and their senior executives and directors were chock-a-block with Democratic Party insiders.

        The banks and securities firms who were TARP beneficiaries received bridge loans, which they paid back with interest within a few years. The only aspect of it which might be termed a ‘bailout’ was that the service rate was somewhat lower than the contemporary rates for ordinary commercial and industrial loans (5.5% v. 7.5% IIRC).

  17. This is pandering on a massive scale.

    But it goes a lot deeper; once again Washington is proposing to change the rules in midstream and pick winners/losers.

    Aside from the obvious questions of the national debt and the subsidy of leftist colleges, there is the moral question.

    What about the millions of families who depleted their savings and reduced their standard of living for years to avoid debt?

    And what about the millions of people who never went to university in order to avoid debt?

    The Dems are now telling the savers that they will have to contribute to those who chose debt over frugality.

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