Why Biden's Student Loan Deception: Pausing Debt Instead of Forgiveness

Contrary to hopes and expectations, President Biden's decision to pause rather than forgive student loan debt is not driven by noble intentions or political missteps. Instead, it is a calculated move to manipulate public perception and secure a source of leverage over those who reap the benefits of his policies.

The Specter of Trumpism

While some may dream of a scenario where Trump personally sends checks to the Cheney-McConnell Political Action Committee, the world is far more likely to see a phony resolution to student loan debts, blamed on the faction they call 'Trumplicans.' This is a testament to the deceitful nature of those in favor of Biden's policies, equating him to a liar and a liar’s pawn.

It is crucial to recognize that those who have been duped by Biden's rhetoric now have a vested emotional investment in his success. As the fog of Trump-hate clears, these individuals may be the first to defend Biden's policies, even if they amount to sustaining a facade of reform.

Political and Legal Constraints

The idea of canceling student loan debt is politically fraught. The process is not without its hurdles, and the legal power to do so is not always clear. In essence, Biden chose to pause loan payments because it allows him to hold these individuals hostage to his financial demands, extending this hold as long as Democrats maintain control.

Legally, Biden has the authority to pause payments, but he does not have the power to fully cancel the debt. This is a delicate balancing act, ensuring he can exploit this leverage without fully incurring public wrath.

The Institutions at Stake

Neither the UK nor the USA maintain a 'standing army,' but they do regularly extend temporary laws. Similarly, the issue here is not purely financial but involves the myriad institutions that rely on these loans. The potential damage from millions of unpaid loans must be considered alongside the interests of student borrowers.

The schools and loan institutions that rely on these funds need to be considered in any comprehensive solution. While student borrowers took legal contracts to repay their debt, this responsibility must be maintained. A total forgiveness approach would undermine the contractual agreements entered into by both parties.

Biden's Responsibility

Despite calls for total forgiveness, it is unlikely that Biden will fully cancel the debt. He is not a socialist, but a responsible adult with a duty to uphold the agreements made by those who signed up for these loans. A partial forgiveness, perhaps limited to interest, might be a more realistic and fair solution.

Biden understands that a complete washout of debt would be socially and politically untenable. Instead, he may seek to reduce debt in a way that remains fair to both student borrowers and the institutions that provide these loans.

Conclusion

The decision to pause rather than forgive student loan debt reflects a complex interplay of political and legal realities. While the idea of forgiving debt is appealing, the practical and institutional implications make it a more distant possibility. Biden’s approach, while pragmatic, leaves room for further negotiation and policy evolution.

Key Takeaways:

President Biden chose to pause student loan debt rather than forgive it due to political and legal constraints. The decision serves as a means of financial leverage over those benefiting from his policies. Total forgiveness would be highly unlikely, and a partial solution is more plausible. The interests of both students and institutions must be considered in any resolution.

As discussions around student loan debt continue, it is essential to approach the issue with a balanced and realistic perspective, understanding the nuanced complexities at play.