Bryan Olin Dozier/NurPhoto via AP
A man speaks during a rally at the Department of Education headquarters in Washington, April 4, 2022, to call for President Biden to cancel all student loan debt.
The economic case for canceling $50,000 of student debt is powerful. Two generations of young adults from non-affluent families are hobbled by debt before their economic lives even begin. But there is an even stronger political case.
Young adults are inconstant voters. They typically turn out at far lower levels than older citizens. But when they do turn out in large numbers, as in 2018, they vote disproportionately for Democrats.
Joe Biden has been administering debt relief in dribs and drabs. He has ordered temporary debt repayment suspensions, the latest of which expires in August. This week, he ordered reforms in the Public Service Loan Forgiveness program, which will wipe out debt for some 40,000 people, and bring as many as three million more closer to ending their debt payments.
None of this generates dramatic headlines. Biden’s policy on debt reminds me of his arms shipment policy on Ukraine. It’s helpful, but behind the curve at every step of the way. But unlike on Ukraine, where Biden has Putin and the risk of World War III to reckon with, student debt cancellation is totally within Biden’s own control.
He should stop these half-baked incremental measures and cancel $50,000 of student debt now. That would make him a vivid hero to two generations.
More than 43 million people now carry student debt, with an average balance of over $37,000. These are mostly people of modest means. Rich kids don’t take out loans because their parents pay. The more the Republicans kick and scream about debt cancellation, the more they alienate these young voters who logically belong with Democrats—if Democrats will just deliver help.
Two follow-up measures are also necessary. Biden needs to send Congress legislation reducing tuition costs at public universities. Otherwise, the debt burden begins all over again.
One sensible approach would be to take the loan to which students are entitled based on their FAFSA application, which reflects household income, and turn that loan entitlement into a grant. Companion legislation could require state universities to hold tuition hikes to the rate of inflation, and require state legislatures to bear more of the cost, as a condition of participating in the loan-to-grant program.
Biden is a genuinely empathic person. He’s at his best when he shows his compassion. It’s hard to think of a more compassionate and easy-to-grasp policy—or one that displays better politics.
