Democrats can find money for war, but not student loan crisis | by Michel Arceneaux | March 2022


United States Speaker of the House Nancy Pelosi and United States President Joe Biden at the annual Friends of Ireland luncheon at the United States Capitol in Washington, DC, United States, Thursday, March 17, 2022. Al Drago/Bloomberg via Getty Images

I am fascinated by what the Democratic leaders keep believing are good ideas.

When I saw the Speaker of the House recite a poem written by Bono about Russia’s invasion of Ukraine last week I laughed because she seemed so impressed with herself for this well-meaning but ridiculous gesture. It reminded me of her kneeling down wearing kente in 2020 least one caveat: at least the Ukrainians are getting money from this Congress.

This is not to dismiss or minimize their struggle, but it speaks to the reality that the US government has money for war but finds every excuse not to fund anything else. Somehow they think people will show up to support them anyway. pelosi recently went to the White House asking for a slogan to campaign for the midterm elections and suggested “Democrats deliver”. White House staffers allegedly then told him that the slogan had already been poll tested and failed.

It’s easy to see why: Democrats delivered some things, but not most of what they campaigned on in the last major election.

They find all that money for more war, but put limits on police reform, child tax credits that reduce poverty, higher wages to fight inflation, legislation on climate change to avoid more mass death and suffering, and one of my favorite topics for personal reasons, student loan forgiveness. Some of these initiatives have at least had occasion to be rejected by this Congress. But in the case of student loans, where congressional inaction continues to frustrate me, maybe it’s time for the Biden administration to listen to some members of Congress (including Senate Majority Leader Chuck Schumer) and use executive power to cancel student loans.

Unfortunately, this White House can’t even decide on another payment extension.

As of now, federal student loan repayments are scheduled to return on May 1. The White House has been pressured to both extend the moratorium and finally take executive action to forgive $10,000 in federal student loan debt – a campaign promise Biden made during his 2020 presidential race.

Earlier this month, Klain told the “Pod Save America” ​​podcast that Biden would likely extend the debt collection freeze. In addition, officials from the Ministry of Education dropped a separate extension index asking companies that service federal student loans to delay sending required notices to borrowers about the start of their payments. But on the question of whether Biden has the executive power to cancel the debt, Klain said, “That’s something we’ll deal with later,” he said.

They were late on this note on President Biden’s legal authority for some time now.

Asked about their stance on the extension, a White House spokesperson told Politico via statement last Friday that they did no update on whether the payment break would be extended.

Meanwhile, private student lenders are pushing for the Biden administration to start repaying federal student loans again as the pandemic-related moratorium continues to hurt their bottom line.

SoFi, which has so much money it could put its name to the stadium that recently hosted the Super Bowl, tell investors early March that the Biden administration last extension the payment freeze cut the company’s profits from $20 million to $25 million in the first quarter of 2022. They say the pause is unnecessary and unfair to borrowers who don’t need it.

SoFi CEO Anthony Noto actually had the nerve to tweet Nancy Pelosi to suspend the payment break and use it to pay for the Covid relief package.

[email protected], we know you and @POTUS are disappointed that the spending bill sacrificed the pandemic relief that @POTUS wanted,” Noto tweeted. “Consider funding aid with the $35 billion it will cost if @POTUS unnecessarily extends the student loan moratorium until 22.”

Considering how many Americans are still dying in the third year of a plague currently ravaging China and several countries in Europe, this line of thinking is as preposterous as it is insane. Money to deal with a plague should not be tied to another problem let alone student loans. I think I speak for a significant portion of the student loan borrowing community when I say to hell with this company trying to burden people more for their profit margins.

It’s too bad Pelosi didn’t respond with a similar stance and brand the Biden administration.

Who do Democrats need most to run in November? Massive blacks. Enough Latino support to dampen GOP gains. Young people, mostly.

If the White House and Democrats in Congress want to mobilize people for the midterm elections, they need to do things that actually benefit their constituents.

In the event of an increase in gas prices, Axios reported that the White House was considering sending gas cards to Americans until they were rebuffed by members of the president’s own party in Congress.

“However, sending gas cards to the American people is not being seriously considered. It is not an administratively feasible solution and the Biden administration does not consider this a serious option to help American families,” explained White House spokesman Vedant Patel.

The wealthy, detached old people who run this nation from the ground often like to brag about American exceptionalism, but somehow when it comes to helping its citizens in need, to many actions are never feasible.

A similar logic was employed for student loan debt. How is this not legal. How the Supreme Court will invalidate it. How this will benefit all Americans who don’t need the help that those who do need it.

It’s such bullshit considering that the Supreme Court, future historic additions or not, is actively throwing away precedent in order to turn the country into Gilead. Biden shouldn’t just extend the student loan payment pause, his people should finally release the memo giving him the power to cancel student loan debt. If they continue to fail in everything else with this Congress, the least Biden can do is flex some muscle here.

Helping people lighten their financial burdens seems like a pretty reasonable motivational tool, but you know, if they want to go with poems and ambivalence and silence, let them earn the fate they deserve.

So is being dumb enough to call on voters to save them at the polls because they have to start paying their student loans again.


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