Student loan debt in America has been a simmering concern for almost a decade. Currently, President Joe Biden examines some type of loan forgiveness for college debtors.
Former President Obama and then-Vice President Joe Biden, according to one expert opponent watching the crisis, share much of the responsibility for the $1.6 trillion loan disaster.
“This is considerably worse than the Savings and Loan catastrophe, the subprime car crisis, and even the sub-prime mortgage recession,” according to Allen Collinge, author of ‘The School Loan Scam.’
“These two guys are among the most culpable for irreversibly burdening so many Americans with debt from which there is no way out except death,” Collinge remarked.
Collinge believes two causes have combined to create the largest debt catastrophe in American history. The first was the elimination of bankruptcy safeguards that people in America have for all other debt.
A reminder that Biden ran on canceling *all* your federal student debt if you went to an HBCU or public college and make under $125k. That was the campaign trail.
— Braxton 🟥 (@Braxtonbrew96) May 1, 2022
“Among all having lived, serving elected leaders, Biden is literally most blameworthy for removing insolvency safeguards from these debts, which is really the core of this issue,” said Collinge.
He runs the Student Loan Justice institution, which is seeking the rescission of all student debt in exchange for the end of the federal loan initiative.
As a member of Congress’ Oversight Committee, and later as its chairman, Biden was essential in eliminating bankruptcy proceedings from government-backed student loan debt and then from individual student loan debt.
In 2015, Ed Boltz, head of the National Organization of Consumer Bankruptcy Advocates, told International Trade Times, “Joe Biden carries a great degree of responsibility for the passing of the bankruptcy reform.”
The second cause was Obama.
Those parts of the bill that deprived students of creditor protection coincided with the massive expansion of student loan debt that then-President Obama campaigned for when he nationalized the student loan system in 2010.
Obama went all out to convince students to borrow more, claiming annexation would save the government $60 billion, according to the Congressional Budget Office (CBO).
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In an interview with NPR on the occasion, then-Education Secretary Arne Duncan said, “This is excellent for the nation.”
The call for full student debt cancelation is growing.https://t.co/VlOJTxYi9t
— The Debt Collective 🟥 (@StrikeDebt) May 4, 2022
“It’s one of those amazing, once-in-a-lifetime moments. We could put $60 billion behind kids just by cutting bank handouts and not heading back to taxpayers for yet another dollar,” says the author.
As per Pew Research, student loan debt climbed from $12,434 per school debtor in 1992 to $40,904 per school borrower now.
Student debt is increasingly appearing to be a liability that will accompany students throughout their lives.
It is a debt that transformed the “property” the White House advised them to value into a noose around pupils’ necks.
What about the $60 billion in savings predicted by the CBO, which then-Education Secretary Duncan bragged about?
Instead of sparing the nation $60 billion, it turned out to cost $400 billion, not including any debt forgiveness.