Don’t Cancel Student Loans, Says Betsy DeVos, Here’s Why
In her “farewell letter,” US Secretary of Education Betsy DeVos wrote this about canceling student loans and making college free.
Here’s what you need to know.
DeVos sent a letter to Senate Majority Leader Mitch McConnell (R-KY) outlining his accomplishments over the past four years and his recommendations for changing education policy. (Here are what changes could happen to your student loans in 2021). DeVos also shared his views on student loan cancellation and “free college”. Here is what she said:
Cancel student loans
“. does the same, ”DeVos wrote. “Blanket college debt cancellation is not only unfair to most Americans, it is also the most regressive policy proposition – rewarding the richest sector of our workforce at the expense of the poorest. “
Let’s break down the declarations of DeVos:
1. It’s unfair if you haven’t borrowed a student loan
DeVos notes that two-thirds of Americans do not have student loans. There are many reasons not to cancel student loans for every student loan borrower. DeVos said it was fundamentally unfair to require that two-thirds of Americans who didn’t go to college or don’t have student loans subsidize the third who did. There have been several proposals in Congress to cancel student loans, most recently ranging from plans to write off $ 10,000 in student loan debt to $ 50,000 in student loans for each borrower. President-elect Joe Biden has also said we should immediately write off $ 10,000 in student loans due to the Covid-19 pandemic. However, Biden said he would not write off student loans through executive order, but Congress would have to write off student loan debt. Simply put, DeVos believes that student loan cancellation is unfair to those who didn’t attend college or borrow student loan debt.
2. It’s unfair if you pay off student loans
DeVos knows what Americans think about student loan cancellation. However, if you have already paid off student loans, why should you be subsidizing other borrowers who have not paid off their student loans? This is part of DeVos’ argument. According to DeVos, you shouldn’t have to pay off student loans owed by other borrowers, which she says constitutes student loan cancellation. DeVos’ argument works like this: if you’ve worked hard and made sacrifices to pay off your debt, it also seems unfair to pay off student loan debt for borrowers who haven’t necessarily made the same sacrifices. “And it’s even more unfair to those who have stuck to their end of the bargain and paid off their student loans themselves to subsidize those who don’t save, plan and pay,” DeVos said in a statement. keynote speech last month.
3. It is unfair that you pay to cancel student loans
Ultimately, DeVos believes that canceling student loans means taxpayers will pay through the redistribution of wealth. “At the end of the day, nothing is ‘free’. DeVos said. “Someone, somewhere, is footing the bill.” DeVos disagrees with Sen. Elizabeth Warren (D-MA) and Biden, who each intend to write off student loan debt. As Education Secretary, DeVos says she has sought to strike a balance between the needs of students and taxpayers. In his view, canceling a student loan is an inefficient and unfair use of taxpayer dollars. DeVos has been consistent in his opposition to the widespread cancellation of student loans as well as the automatic cancellation of student loans under the Obama-era borrower to defend student loan repayment rules. DeVos said its student loan forgiveness rules (compared to Obama-era student loan forgiveness rules) would save taxpayers $ 11 billion over 10 years.
How to pay off student loans faster
What’s the best way to pay off student loans? If Democrats gain control of the US Senate, the cancellation of student loans could take place this year. However, even though DeVos will no longer be the Secretary of Education after January 20, 2021, there is no guarantee that Congress will cancel student loans in the short term, or not at all. That’s why you need a game plan to pay off student loans now. Start with these three options, all free: