In this week’s 90-minute presidential debate, the topic of student loans barely received any attention. There were no specific questions from the moderators about how either candidate planned to address the student loan crisis, and neither candidate took the initiative to offer any proposals on the matter.
However, former President Donald Trump made a surprising reference to student loans during the debate. In a sharp critique of the Biden-Harris administration, he accused them of “taunting” borrowers with the prospect of student loan forgiveness.
The Student Loan “Question” at the Debate
The topic of student loans emerged indirectly when Trump was asked whether he would veto a national abortion ban. In his response, which meandered away from the original question, Trump shifted to the issue of “terminating student loans.”
Trump claimed that borrowers were “taunted” with promises of loan forgiveness that were ultimately blocked by the courts. He also argued that the forgiveness attempt was unfair, asserting that student loan forgiveness was struck down because it would have been unjust to “the millions and millions of people who had to pay off their student loans.”
Were Borrowers Taunted?
Whether or not borrowers were actually “taunted” depends largely on perspective. On one hand, the Biden administration’s efforts to forgive student debt can be seen as sincere attempts to alleviate a significant financial burden for millions of Americans. From this viewpoint, it’s likely unfair to say borrowers were taunted.
On the other hand, the hope and excitement that many borrowers felt when the possibility of forgiveness was on the table may have turned into disappointment when those efforts were halted by the courts. This could lead some to feel as though they were misled or given false hope.
Politically, the issue divides along party lines. Republicans may accuse Biden of making promises he couldn’t deliver, while Democrats might blame the Republican attorneys general who initiated the lawsuits and the Trump-appointed Supreme Court justices who ruled against the forgiveness plan.
Another Perspective: The SAVE Plan and Biden’s Second Attempt at Forgiveness
It’s easy to let the final outcome of the forgiveness efforts cloud our judgment when analyzing the decisions that led to this point. But instead of focusing solely on Biden’s failed attempt at student loan forgiveness, it’s worth considering his other initiatives, such as the SAVE plan and his second attempt at loan forgiveness, both of which are currently blocked in the courts and face an uncertain future.
Would borrowers be better off if the Biden administration had not attempted to create a better repayment plan or a new method of loan forgiveness? If borrowers want the administration to drop these fights, it might be fair to say they are taunting borrowers. If borrowers want the administration to attempt to prevail in court, it’s hard to argue that the administration is taunting them.
The Politics of Student Loans
Student loans have become a political football, with borrowers caught in the middle as they try to navigate the shifting political tides in Washington, D.C.
The lines have been drawn, and borrowers will need to plan their student loan repayment strategies with the understanding that they must account not only for changes in their personal circumstances but also for multiple possible outcomes from ongoing lawsuits and upcoming elections.
Stay Up to Date: Student loan rules are constantly changing, and temporary programs create deadlines that can’t be missed. To help manage this issue, I’ve created a monthly newsletter to keep borrowers up to date on the latest changes and upcoming deadlines.
Click here to sign up. You’ll receive at most one email per month, and I’ll do my best to make sure you don’t overlook any critical developments.
