Even old biddies like Elizabeth Warren are urging Biden to dump more money onto the voters in order to help democrats win the upcoming elections. She said President Biden should cancel student loan debt, a step that she said would “touch the lives of tens of millions across the country.” Meanwhile, there are debtors unethically refusing to pay loan debts under the expectation that debt forgiveness is coming.
Reminder: During Biden's presidential campaign, Biden proposed student debt forgiveness under the following situation:
- Student of a PUBLIC college or university. Students private historically Black colleges and universities and additional minority-serving institutions are also eligible.
- The loans are used for undergraduate tuition.
- The student goes on to work in a field for less than $125,000 annually. Unfortunately, a doctor can make less than this because the profits he gets are due to Authority instead of direct salary or direct compensation. The money is paid by customers to a corporate entity over which the doctor has disbursement authority. Thus, the doctor's earnings can be less than $125K.
Debt forgiveness shouldn't be allowed until there is something done to deal with how Authority is used to shield earnings from being counted as earnings. Of course, many legislators and Biden himself benefits from such tactics. Therefore, politicians probably will not allow reform of this loophole. It's why legislators can received "bribes" without that money falling under the anti-bribery laws. Those that want favors or exceptions in the law donate to the LLC non-profit (e.g. Clinton Foundation, etcetera). After the "donation" is verified, the supplicant receives favors from the politician. Similarly, doctors and lawyers shouldn't have their undergraduate loans forgiven. They only look poor because they are shielding their wealth from being counted as direct income.
I'm not certain on the total student debt, but it is something like 45 million borrowers with 1.6 trillion owed to the federal government.
This post has been edited by Anime Janai: Apr 24 2022, 23:08