WASHINGTON — During a speech in Madison, Wisconsin on Monday, President Joe Biden touted his administration’s efforts to provide student debt relief through several new proposals, such as canceling accrued interest.
“While (a) college degree still is a ticket to the middle class, that ticket is becoming much too expensive,” Biden said. “Things are a lot different from when college tuition was more affordable and borrowing for colleges, repaying those loans was reasonable.”
The new proposals announced earlier Monday, if finalized, would include a one-time cancellation of all accrued interest for 23 million borrowers; cancellation of the full amount of student loan debt for 4 million borrowers; and providing more than 10 million borrowers with at least $5,000 in student debt relief, among other initiatives.
As Biden makes his bid for another term, his stance on providing debt relief for student loan borrowers has evolved since he won the 2020 presidential election.
In 2021, during a town hall, a voter from Racine, Wisconsin asked Biden if he would support student loan debt cancellation and he bluntly replied that he would not, and instead said he would support congressional action on the issue.
The White House believes the new proposals are narrowly targeted enough that they will survive any anticipated legal challenges in order to avoid an outcome similar to last summer, when the Supreme Court struck down the Biden administration’s earlier version of student debt cancellation.
“Today, too many Americans, especially young people, are saddled with unsustainable debts in exchange for a college degree,” Biden said in Madison.
Student debt forgiveness remains a key issue for voters, especially young ones. The administration has begun to lose support from some young voters who back a ceasefire in Gaza and are frustrated with the administration’s support of Israel in its war against Hamas that has led to the death of more than 30,000 Palestinians, according to the health ministry in Gaza.
The Committee for a Responsible Federal Budget, a center-leaning think tank, has not estimated the cost of the new proposal, but in a statement Monday argued against any debt cancellation.
“This new plan will cost tens of billions of dollars at a time when we should be working to reduce the debt, and by worsening inflationary pressures it’s likely to lead the Fed to keep interest rates higher for longer,” Maya MacGuineas, the president of the Committee for a Responsible Federal Budget, said in a statement.