Clearly, President Joe Biden is trying to buy votes prior to the midterm elections. Mr. Biden is “considering” forgiving at least $10,000 in student loans per borrower.
U.S. student debt is $1.75 trillion as of April 2022, according to the Federal Reserve Bank – so we’re talking serious money here.
If allowed, this ploy may be successful because an astonishing 45 million Americans have student loan debt, according to census data. Given the fact that in the previous midterm election, the total vote count was 116 million, President Biden will be buying highly motivated voters that would constitute nearly 40% of the electorate!
The question is can he actually do it constitutionally and legally. It appears so. This move is by executive action without the need for approval of Congress. Can a court order stop the process before the election?
There is also the moral hazard to consider. Will any future student hesitate to obtain loans, knowing that much of the loan may be forgiven by the next president? What about those students who paid off their loans or those hard-working Americans who never attended college? How do they benefit from President Biden’s generosity?
Loan forgiveness has often been called “welfare for the rich.” Most of student debt is owed to those who are wealthy or soon to be wealthy, such as the doctors and lawyers who require more years of study to complete their degrees.
If this loan forgiveness scheme is successful, President Biden can use this method again to buy the presidency in the 2024 election.