College Graduates Move towards Pandemic Recovery with Biden’s “Gift”

Photo by Charles DeLoye on Unsplash

The August jobs report released on Friday has shown that the unemployment rate among college graduates is back down to pre-pandemic levels. President Biden also recently pledged that at least $500 billion would be given to student loan forgiveness.

The unemployment rate for college-educated Americans is now 1.9%. This is the same rate that the country had in February of 2020, right before the lockdowns in the United States began.

At the same time, President Biden has pledged to erase $10-20,000 of federal student loan debt per person for millions of Americans. The reasoning behind this decision has been cited to be the COVID-19 pandemic.

Biden, before this move, had said that it was “pretty questionable” if a president had the authority to proceed with student loan forgiveness. However, he now says that the hardship brought on by the pandemic warrants debt forgiveness.

Legal experts are looking into the HEROES Act, which Biden has cited as proof that he can forgive the loan. This particular act related to those military members in Iraq and Afghanistan who failed to pay their federal student loans. Under this act, they could not be penalized for this.

EJ Antoni, a research fellow for Regional Economics in the Center for Data Analysis at The Heritage Foundation, has said that the low unemployment rates among college graduates are proof that Biden’s argument for student loan forgiveness doesn’t stand.

Outside of the legal concerns regarding student loan debt forgiveness, some have also expressed doubts on whether this move is good financially, especially during extreme inflation.