Biden Admin Suddenly Realizes Restarting Student Loan Payments Will Hurt Them In Midterms

The Biden Administration says that they are considering an extension to the student loan debt repayment pause, likely because they've realized that restarting these payments just a few months before the midterms would be a political disaster for them. But politics aside, forgiving all of the debt would be a massive financial boom to millions of Americans, and to the economy, and it just makes sense to make the debt go away for good. Ring of Fire's Farron Cousins discusses this.

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*This transcript was generated by a third-party transcription software company, so please excuse any typos.

Recently, White House chief of staff, Ronald Klain, appeared on the Pod Save America podcast, where he mentioned that it would be a really good idea and apparently there's discussions happening in the White House for president Biden to further extend the student loan payment pause, which as we all know is set to restart at the beginning of May. Millions of people across the country, going to have to, once again, start making these payments. And considering that May is just what, six months away from the president, excuse me, midterm elections. That's really dumb. And Ronald Klain appears to agree and apparently there's enough sane voices in the White House that also understand taking money out of people's pockets six months before the election is a really dumb idea.

I mean, after all earlier this year with the expiration of the extended child tax credit payments, they took money out of people's pockets. So you've already done it once this year and that's gonna hurt you. But if you do it again, five months after the original one, six months prior to the midterms, you're going to commit an unforced error that is absolutely going to cost you the midterms. Now I know there's, you know, a hundred other factors in there too, but if you do this, there's no chance of winning. Your chance goes to zero. Whereas right now you kind of have a chance to maybe stop some of the bleeding, but not if you let these payments resume. And of course extending the pause is just a bandaid on a gaping chest wound here in the United States of America. The debt has to be forgiven. They have the ability to do this. The Department of Education can absolutely do this.

You don't have to go through Congress. You don't have to have anybody else on your side. You send the memo or write the executive order. The Department of Education does it, it's done and over with. Now, of course, they can only do this for the federally held student loans, which of course is the bulk of student loans here in the United States. But it is not all of them. People who took out private student loans, you know, Bank of America, Chase, any of those other private lenders that did not come from the federal government, those debts would still be owed and we would have to find a different way to go about canceling that. Definitely possible, little bit more difficult. But we could still forgive the debt today for millions of Americans across the United States. That would be a much begger, bigger gift to them than just pausing those payments till after the midterms. This isn't gonna work, folks.

Like I said, a bandaid on a gaping chest wound. We're bleeding out here and we cannot resume these payments, far too many people cannot afford them and they've made that clear. Not to mention, of course the economic impact that totally forgiving these loans would have. It would be a boon of anywhere, according to economists, 86 billion to 110 billion dollars per year to the United States economy, that's a massive economic benefit. We're talking about new jobs. We're talking about new tax revenue for the federal government. Like y'all make more money if we do this thing. The only thing holding them back is their own imagination and their own will to act. You wanna stop the bleeding in the midterms? You wanna increase your chances of maybe not losing the Senate and the House?