Heading: Joe Biden’s new plan to cancel student debt as misguided as old one

President Joe Biden’s new plan to cancel student debt has sparked controversy and debate. With his original student-loan-forgiveness plan struck down by the Supreme Court, Biden is now proposing a new approach to relieve nearly 30 million borrowers. However, critics argue that this new plan is as misguided as the old one.

The latest proposal aims to cancel up to $20,000 in accrued and capitalized interest for borrowers who owe more than they originally borrowed. Those making less than $120,000 ($240,000 for couples) would have their entire balances above the principal wiped out, under certain conditions. The government would also cancel all remaining debts for people with older undergraduate or graduate loans.

While the administration touts this plan as more “targeted” than previous initiatives, critics argue that it is still inequitable and regressive. The plan disproportionately benefits wealthier borrowers, with some receiving significant windfalls. Critics also warn that the plan could worsen inflation and distract officials from more urgent priorities.

Opponents of the plan are expected to challenge its legality, potentially leading to more legal battles and delays. Republican lawmakers have criticized the focus on student-loan forgiveness, arguing that it neglects other important issues in education. They also argue that debt cancellation does not address the root causes of rising education costs.

Despite the political motivations behind the plan, polls show that Americans are divided on the issue of student-loan forgiveness. Critics argue that the costs of the plan outweigh any potential benefits, and they urge Biden to reconsider his approach.

In conclusion, President Biden’s new plan to cancel student debt has sparked a heated debate over its effectiveness and fairness. As the proposal faces legal challenges and criticism, the future of student-loan forgiveness remains uncertain.