Heritage Action Rallies Opposition to Biden's $150B Student Loan Cancellation Plan

Heritage Action, the advocacy arm of the conservative Heritage Foundation think tank, has launched a campaign to gather comments opposing President Joe Biden's plan to cancel student loans. The campaign argues that the plan would transfer nearly $150 billion of student loan debt onto taxpayers, despite 87% of American adults not having student debt themselves.

Why this matters: The outcome of this debate will have significant implications for the national economy and the financial burden on taxpayers. A decision on student loan forgiveness could also influence the 2024 presidential election and shape the future of higher education policy in the United States.

Over 10,800 comments have already been submitted as of the campaign's launch. Heritage Action Executive Vice President Ryan Walker stated, "Americans are rightfully furious that Joe Biden is trying yet again to use their money to salvage his plummeting poll numbers. We are proud to stand with these taxpayers in demanding the Biden administration abandon plans to force all Americans to take on the debt of a select few." The Biden administration has already approved the cancellation of almost $160 billion in student loans through various existing programs, including $28.7 billion for borrowers who were cheated by their colleges or attended campuses that abruptly closed.

While pursuing a wider plan for one-time across-the-board cancellation, the administration continues to cancel student loans through these targeted programs.

President Biden's broader student loan forgiveness plan, which aims to cancel up to $20,000 in federal student loans per borrower, was rejected by the Supreme Court last year. This forced the administration to revise its approach. The White House has highlighted the disproportionate impact of student loan debt on certain demographics, noting that black students are more likely to take on loans and hold nearly twice as much debt compared to their white peers four years after graduation, while Latino borrowers face a higher likelihood of defaulting on their student loans relative to white borrowers.

Critics argue that widespread student loan cancellation is unfair to the vast majority of Americans who do not hold such debt and would end up shouldering the cost as taxpayers. They contend that it disproportionately benefits higher-income earners and those with advanced degrees. Supporters counter that the student loan system is fundamentally broken and cancellation is needed to provide relief to struggling borrowers and stimulate the economy.

The Biden administration weighs its options for student debt relief, Heritage Action's campaign reflecting the strong opposition from fiscal conservatives who view the plan as costly and misguided. With the 2024 presidential election approaching, President Biden's ultimate decision on this contentious issue could have significant political consequences.

Key Takeaways

• Heritage Action launches campaign against Biden's student loan forgiveness plan.
• Plan would transfer $150 billion of debt to taxpayers, affecting 87% without student debt.
• Over 10,800 comments submitted against the plan, citing unfair burden on taxpayers.
• Biden administration has already canceled $160 billion in student loans through existing programs.
• Decision on student loan forgiveness could impact 2024 presidential election and higher education policy.