By Brennan Holmich
On Aug 24, the Biden Administration announced a three-part plan detailing relief to tens of millions of American’s suffering under the weight of student loans. While this move doesn’t address the real, underlying problem of the loans themselves, which currently rests around a cool $1.6 trillion dollars, it is a step in the right direction.
Currently, an estimated 43 million Americans will be able to benefit from this relief, and a staggering 20 million of them will be able to totally wipe out their remaining balances. That is incredible. Unfortunately for many, $10k-$20k isn’t really enough to put a dent in the ruinous debts they’ve taken on in the name of education. Especially as the economy continues to slow and inflation worries grow.
Targeted at those that need relief most, this plan is a clever approach on the road to solving the student loan crisis. Nearly 87% of families eligible for aid are making less than $70k a year, while the cap to be eligible is $125k. Which brings up another issue: How do you help the many people living in major job centers like NYC and Los Angeles where earning $125k is living paycheck to paycheck? They could move, but they risk losing access to their job markets.
Republicans in Congress immediately ran to Twitter, eagerly bringing news of this so called injustice their base. Without thought about such things like “facts”, they immediately began crying and shamming the plan, only for the White House to fire back with actual facts. Information about PPP loans is available to the public, so it might not come as a huge surprise to learn these people received hundreds of thousands, to millions in PPP. Why is it okay and right and fair for Congressmen and women to receive hundreds of thousands to millions, while people actually working and bettering themselves through education are left with crippling, life long debts?
Texas’ very own Ted Cruz (R-TX) chimed in and has stated that this decision is likely to increase voter turn out for the November midterms, stating in his podcast, “Maybe you weren’t going to vote in November, and suddenly you’ve got twenty grand.” Helping your constitutes better themselves in turn helps further your political goals? Truly ground breaking insight from Mr. Cruz.
Those not eligible for aid, the loan repayment pause has been extended to the end of the year, 31 December.