The Impending Impact of Biden’s Student Loan Forgiveness Plan on the Presidential Election

The Biden administration is pushing forward swiftly with a revised student loan forgiveness plan, aiming to initiate the process of erasing individuals’ debts as early as this upcoming fall. This initiative has the potential to play a significant role in the upcoming presidential election, according to experts in the field. Mark Kantrowitz, a higher education expert, emphasized the impact of issues that present a stark contrast between Democrats and Republicans, noting that they are more likely to sway the election, particularly if they influence voter turnout for one party over another. Student loan forgiveness falls under this category, making it a crucial aspect of the political landscape.

During his 2020 campaign, President Joe Biden made a promise to eliminate student debt, a pledge that faced an obstacle when it reached the Supreme Court last June. The conservative justices ruled that Biden’s $400 billion loan cancellation proposal was unconstitutional, prompting the president to pivot towards exploring the existing authority of the U.S. Department of Education to forgive student debt. While the department has made strides in alleviating the financial burdens of 4 million individuals, totaling $146 billion in aid during Biden’s tenure, the demand for broader relief remains pressing. The Debt Collective’s co-founder, Astra Taylor, highlighted the vast number of over 40 million people who were promised debt cancellation, dwarfing the actual recipients of relief.

Following the setback at the Supreme Court, President Biden unveiled an alternative plan for student loan forgiveness. Unlike his initial proposal, this new program is more targeted, focusing on specific groups, such as individuals facing financial hardships and graduates of low-quality institutions. Additionally, approximately 25 million people could have the interest on their debt waived under this revised plan. Kantrowitz anticipates that the Biden administration will endeavor to provide this relief to borrowers before the November elections, with nearly half of voters expressing the significance of student loan forgiveness in the upcoming presidential and congressional races.

Political Implications and Voter Perspectives

Forgiving student debt could potentially bolster Biden’s support among young voters, a demographic where he has encountered challenges. A survey conducted by SocialSphere revealed that 70% of Gen Z respondents considered student debt cancellation as a crucial issue for the election. This focus on debt relief allows Biden to differentiate himself from his expected Republican competitor, Donald Trump, who has historically opposed measures aimed at aiding student borrowers. Trump’s actions against the Public Service Loan Forgiveness program and his alignment with the Supreme Court’s decision against Biden’s plan underscore this contrast.

Strategy for Implementation

President Biden adopted a different approach to his latest student loan forgiveness plan by involving the negotiated rulemaking process, a tactic he hopes will minimize legal obstacles. This method, though more robust than executive action, involves a series of steps, including committee deliberations, rule proposal publication, public comment solicitation, and the final rule release by the Education Department. While the timeline suggests that the regulations wouldn’t come into effect until July 2025, Education Department officials could expedite certain provisions by issuing a notice in the Federal Register. Despite the potential for an earlier implementation, legal challenges to the plan could impede its progress.

The impending impact of Biden’s student loan forgiveness plan on the presidential election underscores the significance of addressing the issue of student debt relief. The evolving strategies and challenges surrounding this plan highlight the complex interplay between policy initiatives and political dynamics, shaping the narrative of the upcoming electoral contest.