All the delays in getting to this point. I certainly was not fooled. Biden has an extensive history of believing students will renege on their loans, when there was no evidence to support his contention early-on. By early, let go back to 1978 (link is provided). I have added other Angry Bear links to build a foundation for my words.
Amateur Socialist brought up a point at Naked Capitalism, which makes sense:
Reading through the comments I’m sort of surprised there isn’t any recognized analogy to the just forgiven PPP loans. Which were only supposed to pay 1% interest even if they weren’t forgiven. (Were any repaid? I didn’t see that headline). The AC techs and plumbers and electricians likely saw some of that largesse, whether on their own behalf or via their employers.
And I’d submit there is some relevance. The PPP loans propped up some zombie companies and precipitated some outright frauds, just as student loan programs propped up some bloated useless college bureaucracies and some fraudulent degrees. While sustaining some worthwhile enterprises and some deserving students.
And in the face of that all too recent forgiveness it’s hard to see this proposal as anything but a pitiful performative gesture. aka The Democratic Brand (see also kneeling in kente cloth). And true to that brand it will please exactly nobody. I can’t picture the voter who will be motivated by this either way. Another Biden nothing burger.
Let’s check it out and see if Amateur Socialist is right. At Pandemic Oversight, they are citing the first PPP Loan results. Interest Rates are 1% from 2 to 5 years dependent on when you were given the loan. And most of the Loans were forgiven.
More than 11.8 million Paycheck Protection Program (PPP) loans were issued as of June 30, 2021, with 708 borrowers receiving the maximum loan amount of $10 million.
Of the total number of loans, 10.2 million have been partially or fully forgiven. The average dollar amount forgiven was $72,500. Of the borrowers receiving the maximum amount, 625 loans have been partially or fully forgiven.
In some instances, you may see on the Paycheck Protection Program Interactive Dashboard that the forgiven loan amount is more than the original loan. The reason is that the interest on the loan has been forgiven as well.
An average amount of $72,500 in loans to 10.2 million people were loaned out or $739,500,000,000. All of that amount was forgiven. That is $billions for loans up to July 4th. Roughly speaking, we are talking about 46% of all of the student loan debt.
This report was updated today on August 24 on information on hand July 4th. Yeah, I know conspiracy thinking. Biden has been on student loans and students since 1990 and maybe even earlier. I was wrong, sigh, try 1978 and the backup can be found here, “History of Discharging Student Loans in Bankruptcy” Angry Bear and below in references.
There appears to be a delay in releasing the July 4th report on PPP loans for whatever reasons. I was using the old data from November 2021. Took a break and suddenly the July 4th 2022 data was there and released today August 24. “Update: 10.2 million PPP loans were forgiven. Here’s why.” | Pandemic Oversight. I am guessing this was released just as Joe Biden was making his report on Federal and Pell Student Loan forgiveness. The ones holding commercial student loans? Well too bad, you are out-of-luck.
I can not help but think this was done so as not to give people with student loans more detail in making their argument.
Most of these ones holding these loans work and can not make the payments to reduce principal so the amount keeps growing. See here: “Why $10,000 of Student Loan Relief will not Help” – Angry Bear, Later . . .
“Paycheck Protection Program (PPP)” | Pandemic Oversight
“Funding Overview” | Pandemic Oversight
“4.1 million PPP loans were forgiven. Here’s why”. | Pandemic Oversight
“Joe Biden’s Role in the Student Debt Crisis Dates to the 1970s” (theintercept.com)
Other references n text.