Democrats are pitching student-loan forgiveness to save working-class people from drowning in insurmountable debt. However, nearly half of student debt outstanding is held by upper-middle-class college elites.
As explained by CounterPunch, student loan forgiveness won't benefit blue-collar and service workers. Instead, it's a handout to the college-educated elites with Masters Degrees and PhDs.
It is no mystery why Democrats want to push student loan forgiveness.
The college-educated elite is today's Democratic Party's base. That's why Joe Biden ran on the campaign promise of forgiving their student loan debt. (And like nearly all of his campaign promises he never had any intention of actually keeping that promise.)
Basically student loan forgiveness would be a big handout to the college-educated class (costing between $373 billion and $1.6 trillion, depending on the plan); if Democrats fail to keep this promise they risk alienating a substantial part of their base, which could mean even bigger losses at the polls in 2022 and 2024.
Democrats like to say that in pushing for student loan forgiveness they are only looking out for the working class, that student loan forgiveness will make it more likely for the working class to attend college (wrong, tuition-free college would), and to provide relief for those who have dropped out of college without a degree and are now strapped with crushing debt. Best of all, forgiving student debt would be remarkably easy to accomplish.
Graduate student borrowers hold about 47% of all federal student loan debt. Those aren't your everyday working-class folks that Democrats traditionally focus on, so there's got to be a hidden agenda...
The weaponization of student-loan forgiveness allows the Biden administration to
buy win votes ahead of the midterms and presidential elections to rebuild the party's base with college-educated elites. The massive handout deviates far from the norms of the party to help working poor folks.
For the last two years, Democrats have been overly enthusiastic about the moratorium on student-loan payments has been renewed six times since COVID began. This should be a sign the party is attempting to fulfill campaign promises to cancel student debt.
Bailouts have already begun. On Tuesday, the Department of Education announced that 40,000 borrowers would receive "immediate debt cancellation" under new Public Service Loan Forgiveness Program guidelines.
There is no mystery why the Biden administration and Democrats have made student loan forgiveness such an important issue. Business Insider writer Ayelet Sheffey explained that student loan forgiveness could lure nearly half of Americans in key battleground states to vote in November.
President Biden's campaign promise to cancel student debt appears to be a move not to help the working poor but rebuild the party's base with liberal elites ahead of critical elections. The Democrats can shower free money over 43 million desperate Americans burdened with student debt, collectively owning an estimated $1.75 trillion.
Crucially, the jawboning of 'student loan forgiveness' as an incentive to vote Dem has sparked the typical unintended consequence of student debtors refusing to pay their loans.
As fintech student loan managing software company PayitOff poll reveals, a significant majority (64%) can't (or won't) pay off their loan until legally required to do so (or when Biden bails them out?).
We're sure the billionaire won't mind paying a bit more "fair share" to rescue those liberal elites from their insurmountable debts.