Biden's student loan help would be 'annihilated' by GOP bill

Possible article summary:

President Biden’s plan to forgive or cancel federal student loans could face serious obstacles from Republican lawmakers, who are proposing a bill that would restrict executive branch powers to cancel debt without explicit authorization by Congress. According to the proposed legislation, titled the “Higher Education Loan Payment and Enhanced Retirement (HELPER) Act,” any student loans forgiven through executive order or agency action would be treated as taxable income, potentially raising the tax burden for millions of borrowers. The bill’s sponsors argue that forgiving student debt would reward irresponsible borrowers at the expense of responsible savers and taxpayers who already repaid their loans or did not attend college. However, critics of the HELPER Act say that it would undermine the economic recovery and social mobility benefits of student loan forgiveness, especially for low-income and minority students who face persistent wealth gaps and economic disadvantages. Moreover, they point out that the federal government already has a legal authority to cancel student loans under the Higher Education Act of 1965, which delegates broad discretion to the Secretary of Education to modify, compromise or waive any borrower’s obligation under the program. Therefore, the new bill could “annihilate” Biden’s ambitious agenda to address the student debt crisis, which has reached an all-time high of $1.7 trillion, affecting about 45 million Americans.

As a writer who follows the higher education policy, I found this article intriguing because it reveals the ideological and political tensions surrounding the national debate on student loan forgiveness. On the one hand, advocates argue that forgiving or canceling student loans would stimulate the economy, reduce inequality, and promote fairness, while opponents view it as a moral hazard and a fiscally irresponsible policy that would cost billions of dollars. The proposed HELPER Act reflects the latter view, but it could face opposition from Democrats and some centrist Republicans who support some form of student debt relief. This article shows how the student debt issue is not only a matter of financial burden for individuals but also a contentious issue of public policy and social justice. Therefore, readers who want to stay informed about the ongoing debates on college affordability, access, and equity should pay attention to the fate of the Biden administration’s plan and the prospects of the HELPER Act.