Trump Admin Offers Alternative To Student-Debt Forgiveness During Pandemic

March 26, 2020   |   by James G. Dalton

Authored by Eduardo Neret via CampusReform.org,

The Trump administration is taking action to offer relief to students during the coronavirus pandemic.

According to a report by Politico, the Department of Education “stopped seizing the wages, tax refunds, and Social Security benefits” of individuals who are defaulting on their student loans.

The department also protected borrowers by directing private companies to suspend collection pursuits during the crisis.

The Politico report estimates that the administration’s actions will aid approximately 9 million borrowers who have defaulted on their student loan debt.

The new actions by the administration followed a recent decision to suspend interest on federal student loans during the crisis.

Campus Reform previously reported on efforts by congressional Democrats to include student loan debt forgiveness of at least $10,000 per person in the coronavirus stimulus package. 

Reps. Ayanna Pressley (D-Mass.) and Ilhan Omar (D-Minn.) also introduced legislation to cancel student loan debt during the pandemic. The proposal would have eliminated at least $30,000 in debt per person.

Presidential candidate Joe Biden endorsed the plan to forgive up to $10,000 of student loan debt per person, writing in a tweet that Congress “should forgive a minimum of $10,000/person of federal student loans, as proposed by Senator Warren and colleagues.”

“Young people and other student debt holders bore the brunt of the last crisis. It shouldn’t happen again,” Biden tweeted.

via zerohedge

Recent Comments

  1. Laura Carreira

    Reply
    March 26, 2020 @ 12:35 pm

    TrueType poor can get Pell grants. Loans are to middle class or higher . Going to college is a choice. How you pay for it is a choice. Responsible people pay for their choices.

    • MMcLaugh

      Reply
      March 26, 2020 @ 2:55 pm

      Amen to that.

    • Joan Buchmann

      Reply
      March 26, 2020 @ 3:00 pm

      HIGHER EDUCATION is such a FARCE, in REALITY, COLLEGES & UNIVERSITIES do NOT EDUCATE ANYMORE … THEY INDOCTRINATE.

      • Max

        Reply
        March 26, 2020 @ 3:27 pm

        So true!

    • Robert D

      Reply
      March 27, 2020 @ 12:55 am

      Laura Carreira, your ignorance combined with your profound willingness to display it, are almost entertaining, except for the awful stink of bullshit that @accompanies it. PELL GRANTS are available to qualified students, who have ALSO applied for Student Loans as a REQUIRED ARRANGEMENT to insure payment for their Textbooks and similar materials, AND the semester, or quarterly cost of Each Course in their APPROVED Curriculum. A $2000 Pell Grant does NOT defray the cost of a FULL-TIME Enrollment, and it does not provide the means of existence necessary for a FULL TIME STUDENT TAKING A COURSE SCHEDULE FOR A SPECFIC EDUCATIONAL GOAL. In addition to the $2000 Pell Grant, a full-time Course Load for FIRST YEAR College Students is going to eat up anywhere from $3,000 to $4,500 ADDITIONAL Simoleons, which is WHY the majority of students GET STUDENT LOANS, APPROVED IN ADVANCE FOR THE ENTIRE SCHOOL YEAR, but paid OUT by the Semester, or Quarter, or Term, with successive payments DEPENDENT upon satisfactory performance by the student during the previous period of enrollment. Perhaps YOU could benefit from a little education yourself, to help you avoid saying stupid shit that a lot of people see.

  2. Kenneth Kirkham

    Reply
    March 26, 2020 @ 1:46 pm

    The problem with student loan debt forgiveness is that it punishes the people who actually paid their debt and rewards those who did not.

    • Imogene

      Reply
      March 26, 2020 @ 2:28 pm

      That is always the way. Same thing happens to mortgage holders.

    • Laura Stine

      Reply
      March 26, 2020 @ 2:50 pm

      Responsibility has never been rewarded in our current society. Become addicted, kill people, etc. It’s always someone else who is to blame. It’s not the killer at fault, it’s the guns and the gun manufacturer who is to blame. We have rewarded irresponsible behavior and people for too long.

      Back to student debt. Those who pay the debt, or making payments are being treated badly when you don’t expect others to pay and/or relieve the debt. With this mentality we are training people to be irresponsible.

      • Dana

        Reply
        March 26, 2020 @ 10:17 pm

        Bail-outs of big companies are even worse – same thing but on a huge scale.

    • Bill Black

      Reply
      March 27, 2020 @ 7:26 am

      So you are saying that one should not pay for their choices. I will take a Porsche and maybe a Lambourgini also.

  3. The Real M

    Reply
    March 26, 2020 @ 2:13 pm

    Student loans were always obtained from lending institutions just as loans for any other reason by the students or their family until Obama decided they should be controlled and taken over by the government leaving the American taxpayers the losers when students loans are defaulted! This was a horrible decision! It should never have become the American people’s liability, student loans should be a personal financial responsibility the same as taking out a loan for a car!
    There are untold hundreds of millions on our government’s financial Balance Sheet we will never be able to collect! This decision should be reversed, it is not the government’s responsibility to finance education!

    • Imogene

      Reply
      March 26, 2020 @ 2:30 pm

      Totally agree. You make a debt you need to repay it

      • Max

        Reply
        March 26, 2020 @ 3:29 pm

        I wholeheartedly agree.

  4. PHILIP B. MOORE

    Reply
    March 26, 2020 @ 2:26 pm

    I agree with you 100%

  5. Rick Teeter

    Reply
    March 26, 2020 @ 2:34 pm

    For all those that want a “free” education here is a suggestion. Serve your country in uniform for 4 years and you’ll get a free education.

    • MMcLaugh

      Reply
      March 26, 2020 @ 3:06 pm

      This is by far the best suggestion yet.
      ‘Earned’ is better than ‘free.’ People should try it and see for themselves.
      Nothing is free. Not even Freedom.

    • Max

      Reply
      March 26, 2020 @ 3:31 pm

      AMEN! The bonus is that they will soon find out that freedom is not free.

    • Sandra Hapenney

      Reply
      March 26, 2020 @ 4:13 pm

      Serving in the military does not necessarily provide free college education. My daughter was in the Coast Guard and had to paid into a fund to get the benefits. When she went to college many years later, she received no benefits.

      My husband served for 20 years. When he decided to get his doctorate, his benefits had expired.

  6. Sue Johnson

    Reply
    March 26, 2020 @ 2:39 pm

    Well, college was expensive. I do remember working 3 jobs to pay for the tuition, rent, car, insurance, and crying because there was only $50 left for 2 weeks to eat and put gas in the car. I would have loved a loan that would have been forgiven to go to an Ivy League College. But I just wasn’t bought up to incurr debt that someone would pay. God Save us all

  7. SandyT

    Reply
    March 26, 2020 @ 2:45 pm

    Look no further than the Spring-breakers, interviewed on the beaches of Florida and elsewhere, it’s “PAR-TA” time, “who cares about a virus”, “if I get it, I get it”, and “I don’t worry about who might catch it after I go home, mom and dad, Nana and Papa!” These entitled brats spend years in college, getting drunk or stoned, having fun, to avoid having to get out into the “real world” and earn a living. Now, the taxpayers should “forgive” their loans?
    Many of them should have been either in the military or a trade school, learning skills to make a living.

    • Max

      Reply
      March 26, 2020 @ 3:36 pm

      Thanks to these clueless people , Miami Beach just posted 50 cases of Coronavirus. In addition there’s no telling how many other people were exposed as these people traveled. I hope spring break was worth it.

  8. Arnold

    Reply
    March 26, 2020 @ 2:53 pm

    Don’t make debt you can not pay

  9. April Williams

    Reply
    March 26, 2020 @ 3:35 pm

    Wish it was really that simple. When I was in college I was a certified tutor and there were students who should of never ever been allowed to enroll, there was a student who tried so hard in high school and he had a really bad learning disability and when you see his high school transcript of D’s and F’s and 1 C you ask yourself how did the college accept him. He wanted something better and the school promised him his dream. He couldn’t comprehend the promissory note and was told by the financial aid adviser the whole thing was going to cost him a few hundred dollars and he even showed her his transcript and she told him not to worry about it, she would work it all out. Last year Kaplan University was sued they defrauded the federal government in the tune of a whopping $4 billion, which is basically a record when it comes to higher education fraud.

    The school was doing so many illegal things, and running such fraudulent business practices, that the US Government investigation, lawsuit and punitive measures basically forced it into closing down, which isn’t surprising if you consider just how bad they were behaving.

    Another one of the students I tutored was actually mentally retarded and while her mother thought she was attending day treatment she was in college being screwed. She just wanted to be an artist and that is what was promised to her. Day treatment couldn’t call her mother because of HIPPA laws but I couldn’t take it anymore so I went to her house with her and she introduced me to her parents. Bill Clinton signed into law the loan guarantee law and basically you are guaranteed a loan. A lot of colleges that are private don’t test incoming students because they are guaranteed a loan even if they don’t qualify.

    I am a big Trump support and I believe in responsibility but I have seen the other side of the coin. How many students should of never been allowed to enter college?

  10. Mary Hammers

    Reply
    March 26, 2020 @ 3:43 pm

    On a Teacher’s income ( less than $35,000 a year when I started), raising 4 children, female head of household. I got through school on scholarships, and student loans. It took me 13 years to repay the loan, but I took it as a point of honor. I borrowed the money (just what I needed) to get through a state college, nothing fancy or ridiculous like going to one of the “name brand colleges.” I’d match my education to any of those ivy league university. You get out of things what you put into them. After I graduated I found out there were loans that could be partially forgiven if I taught in a socio-low-income area (my whole 31 years was such a place). Mine could not be forgiven because the college didn’t steer me to those loans, probably because I was white (so much for white privilege’s). I paid every single cent I owed and did not regret even one month a bit was taken out of my paycheck. I worked two jobs for a couple of years. I think everyone should look on a loan they took out as absolutely their obligation. They gave their word they would repay it.

  11. Lora Conner

    Reply
    March 26, 2020 @ 4:46 pm

    I very much resent the tuition students are charged and then the universities have speakers brought in that they pay up to $750,000 (Bill Clinton) and $500,000 (Hillary) and no telling how much to other left- wingers. The speakers are almost always leftist Democrats, while any Republicans have things thrown at them and fear for their safety! I believe all these speakers should be stopped, and the amount of money students pay be reduced accordingly. Most parents don’t send their kids to school to get indoctrinated!
    I also believe the professors salaries should be capped. If they do research for the common good, then the companies they are working with should pay for their help.

  12. James

    Reply
    March 26, 2020 @ 11:20 pm

    Some of the student loans are for high dollar cars the kids buy. I payed for mine you pay for yours freeloaders

  13. Hal

    Reply
    March 27, 2020 @ 4:47 am

    After High School graduation I joined the military. This was in 1962 prior to the Vietnam war. I spent 8 years on active duty most of which was during the Vietnam experience. During active duty I attended night school at local colleges and even while stationed overseas attended Extension colleges at night after my duty time. When I was released from active duty, I took a part- time job (25-35 hrs a week) and attended college full time and received tuition assistance from the GI bill. I worked for a company that also paid college tuition if I attended full time. Yes, it was very difficult and I didn’t have much play time, but I never had to take out a loan for college. Yes, it took 3 more years to complete my Bachelor of Arts degree while also participating in the Air National Guard one weekend per month and 15 days of summer-camp per year. I also married during this time.
    The point of all of this is…if there is a will, there is a way. While on active duty I saved over $14,000 which made it possible to purchase a home without debt.
    Today, I have no debt other than taxes. I am able to give to many needy organizations and help my family to be educated and successful, now with 7 grandchildren and soon to be 3 great grandchildren. Truly, I am not bragging, but if I could do this considering my background, anyone can do it. Nothing is free without hard work and planning and to figure out a way. If we are forced to take out a loan, we need to pay it back. This mean we have to go without luxuries for the time being and do the work while being responsible. I know many people who have gone to college part-time for ten years and pay as they go.

  14. Jeff

    Reply
    March 27, 2020 @ 6:34 pm

    Too bad that basket weaving degree never helped make a living to pay off those college loans.

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