Biden unveils new student loan bailout plan ahead of 2024 election

President Biden aims to provide relief to black and Latino borrowers amid poor polling numbers among young voters.

Biden unveils new student loan bailout plan ahead of 2024 election
AP Photo/Evan Vucci
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President Joe Biden, confronted with lackluster polling numbers among young voters, a key demographic for a Democratic candidate, has announced a new student loan bailout program just ahead of the 2024 presidential election. This move comes after the U.S. Supreme Court blocked his previous attempt last year, deeming it illegal.

Under Biden's new plan, taxpayer money would be used to erase the student loan debt of over 30 million borrowers, according to the White House. The administration stated that the actions were specifically designed to provide relief to black and Latino borrowers who attended community college and are financially vulnerable due to taking on debt without completing their degrees, the Daily Wire reported.

The plan aims to assist borrowers who owe more than they did at the start of repayment, those who are eligible for loan forgiveness but have not yet applied, those who first entered repayment many years ago, those who enrolled in low-financial-value programs, and those experiencing hardship in repaying their loans.

Speaking at an event in Wisconsin, Biden said, "Today, too many Americans, especially young people, are saddled with unsustainable debts in exchange for a college degree. The ability for working and middle class folks to repay their student loans has become so burdensome that a lot can't repay it for even decades after being in school."

He added, "Even when they work hard and pay their student loans, their debt increases, not diminishes. Too many people feel the strain and stress wondering if they can get married, have their first child, start a family because even if they get by, they still have this crushing, crushing debt, and it's not just a drag on them."

Biden claimed that people couldn't buy homes because they had to repay their student loans, despite the fact that most people are unable to afford homes due to high interest rates sparked by the inflation caused by his American Rescue Plan.

"Tens of millions of people's debt was literally about to get canceled, but then some of my Republican friends and elected officials and special interests sued us and the Supreme Court blocked us, but that didn't–well, that didn't stop us," he said. "No, I mean it sincerely. We continue to find alternative paths to reduce student debt payment that are not challenging."

The announcement of the new student loan bailout plan has reignited the debate surrounding the fairness and long-term economic impact of such measures. Critics argue that the plan unfairly shifts the burden of student debt onto taxpayers, while supporters maintain that it provides much-needed relief to financially struggling borrowers.

As the 2024 presidential election approaches, Biden's efforts to address student loan debt and appeal to young voters are likely to remain a central focus of his campaign strategy. The success or failure of this new plan may have significant implications for both the election outcome and the future of higher education financing in the United States.




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