The New York Post just exposed the real reason why President Joe Biden has canceled student loan debt, and it has very little to do with providing debt relief to the less well off.
Rather, according to the Post, Biden is pushing student loan forgiveness as a “bribe” designed “to shore up votes” among two demographics: suburban Democrats and young voters.
Per the Post:
So why the push for forgiveness? Well, a big chunk of those debt-burdened, well-educated voters are Democrats who live in suburban areas where the party is trying to shore up votes. Forgiveness would also appeal to younger voters, among whom Biden’s support has collapsed.
Forbes has recently released a report indicating that, thus far, Biden has “canceled more than $17 billion of student loans.”
That figure is spread across four areas: borrowers who do a public service, borrowers with a total and permanent disability, borrowers misled by their school through borrower defense to student loan repayment, and borrowers who went to ITT Technical Institutes.
On top of this, Forbes reports that $200 billion in student loan relief has been provided to borrowers by the federal government’s pause student loan repayment. The Biden administration has extended this pause an additional four times since Biden took over.
As if this isn’t enough, there are many on the left, including Sen. Elizabeth Warren (D-MA), who want Biden to do more. Warren, in fact, insists that Biden can and should cancel $50,000 in student loans per person.
Biden, so far, has turned down the idea instead of pushing for his own plan, which would amount to about $10,000 in student loan forgiveness per borrower.
The Post, in its article, backs its argument up – that Biden is seeking to buy the votes of wealthy Americans using student loan forgiveness – with the citation of several studies that show that Biden and the left’s push to cancel student loans benefit the wealthy far more than it benefits the poor.
One study, for example, shows that “almost a third of all US student debt is owed by the wealthiest 20% of households, while the bottom fifth of earners owe less than 10% of such debt.” Another study shows that loan forgiveness plans, such as the one being pushed by Warren, “would benefit the top 10% of earners five times as much as those at the bottom.”
The Post argues “this is the exact opposite of equity: a wealth transfer to the already affluent to bribe key Democratic constituencies, and both insult and injury to the less well-off.”
The paper is right. The question, though, is how many Americans will fall for “Biden’s bribe.” We’ll see.