Commentary
President Joe Biden has offered student debtors some relief. Legal challenges question whether he has the authority to make such a financial commitment. However, even if the White House prevails in court, arguments pro and con will still matter, especially as the nation approaches this year’s midterm elections and the 2024 presidential contest.
Here is what the White House plans. It would extend to Dec. 31 the existing pause in student debt payments. It would give up to $20,000 of debt forgiveness to all Pell Grant participants and up to $10,000 in forgiveness to individuals with incomes up to $125,000 a year and couples with incomes up to $250,000 a year. Debtors who work for certain nonprofits in the military or for federal, state, tribal, or local governments can have their student debt forgiven entirely through the Public Service Loan Forgiveness (PSLF) program. Though Biden has yet to account for how much this relief will deny federal coffers, the prestigious Penn-Wharton Model estimates figures ranging up to $1.0 trillion….