Time for ‘the President to cancel student debt’: Is Bernie Sanders right to criticize SoFi stadium spending?
- Bernie Sanders is a senator for the US Senate and currently serves on the Senate Budget Committee and Environment and Public Works Committee. He is the “longest serving independent member of Congress.”
- On February 13, 2022, Bernie Sanders tweeted, “How does it happen that SoFI, a student loan re-financing company, could spend $625 million to put its name on the LA Rams football stadium when 45 million Americans are drowning in $1.8 trillion in student debt? Today would be a good day for the President to cancel student debt.”
- SoFi Technologies Inc. secured naming rights to the Los Angeles football stadium in 2019, hoping to “increase brand awareness.”
- On December 22, 2021, President Biden extended the student loan payment pause an additional 90 days through May 1, 2022, from the previous January 31, 2022 deadline.
- The Economist and YouGov poll found that most Americans believe Biden will make little to no progress on canceling student loan debt as of January 2022.
- There are 45 million Americans who owe a combined total of nearly $1.75 trillion in student loan debt.
Bernie Sanders is right: it's about time President Biden canceled student debt. SoFi, the student loan refinancing company, showed off its obscene wealth by spending $625 million putting its name on the LA Rams football stadium, and yet at the same time, 45 million Americans are drowning in a nearly $1.75 trillion debt. Canceling student debt has numerous benefits for the whole nation. As to who will cover the cost of canceling the national student debt, America has ample resources—just look at the colossal amount of money spent on COVID testing and treatment. The problem is America suffers from astronomical corporate greed.
Every year, the government cancels debts of multi-millionaires and billionaires, bailing out failing companies and offering enormous tax breaks without even batting an eye. It is time the average American got the same benefit from a rigged system. Plus, canceling student debt will boost the economy by allowing young people and couples to get married, start a family, and buy homes, cars, or even start small businesses earlier in life. Data show that the cancellation may boost the GDP by billions of dollars, reduce the unemployment rate and add 1.5 million new jobs.
Canceling the debt will also provide relief to the millions who are struggling with rent, food, and lost income due to the COVID disruptions. Further canceling the student debt will advance racial and gender equity as both women and African Americans hold higher average debt levels. A staggering 40% of people who hold student debt never completed college and will face a lifetime of hardship paying back the debt. Biden needs to stop keeping Americans in waiting and deliver on his campaign promise.
Bernie Sanders is right: it's about time President Biden canceled student debt. SoFi, the student loan refinancing company, showed off its obscene wealth by spending $625 million putting its name on the LA Rams football stadium, and yet at the same time, 45 million Americans are drowning in a nearly $1.75 trillion debt. Canceling student debt has numerous benefits for the whole nation.
No one is forced to borrow money from SoFi or any other lender to help pay for their college tuition. The lender and borrower enter into an agreement whereby the lender agrees to lend, and the borrower agrees to repay the loan with interest. Student loan borrowers are contractually obligated to pay them back. The lender should not be on the hook for those unpaid balances, nor the American taxpayer.
The discussion of wiping away all student loan debt has created a moral hazard in that college students and even recent college graduates may have taken out student loans believing they would never have to pay them back. The current student loan debt in the United States towers at $1.75 trillion. Is it fair for those who have diligently repaid their student loans to simply have everyone else’s wiped away with the stroke of a pen? The Biden administration incessantly express desires for 'equity.' Where is the equity in a forgiveness program that favors some over the rest?
Additionally, colleges and universities, knowing they are getting their tuition money, have increased the cost of a college education well beyond inflation or cost of living increases over the last several decades. In 1985, a bachelor's degree cost an average of $5,504 but rose to $27,357 in 2017. The time to cancel student loan debt is never.