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White House


HOW STUDENT DEBT RELIEF ADVOCATES GOT THE SHORT END OF THE DEBT CEILING DEAL

As details of the agreement began to circulate, advocates said they were
surprised to hear it included a provision effectively requiring the Biden
administration to start collecting federal student loan payments.



Student debt relief advocates said they felt like the sacrificial lamb of the
whole debt ceiling deal making process. | Seth Wenig/AP Photo

By Lauren Egan and Eli Stokols

06/02/2023 06:00 PM EDT

 * 
 * 

 * * Link Copied
 * * 
   * 
   * 

A debt ceiling default may have been averted, an economic calamity may have been
avoided, and President Joe Biden may soon be taking what amounts to a victory
lap with an Oval Office speech Friday night. But not everyone is heading into
the weekend high on good vibes.

One group in particular is feeling burned by how the week went down: student
debt relief advocates.



As details of the agreement began to circulate late Saturday night, those
advocates said they were surprised to hear it included a provision effectively
requiring the Biden administration to start collecting federal student loan
payments — which have been paused since 2020 — at the end of the summer.



At first, some advocates thought it was a mistake. That’s because they hadn’t
received a heads up about it from the White House. Nor had the possibility of
its inclusion been raised when a group of debt relief advocates met with senior
administration officials just weeks earlier at the White House.

But when the text of the agreement was released the next day — confirming that
restarting payments was part of the legislation — advocates said they felt like
the sacrificial lamb of the whole deal making process.

“It was a total surprise. We felt like the biggest bargaining chip of the debt
ceiling,” said Natalia Abrams, president of the Student Debt Crisis Center. “The
lack of discussion of this is what led to more of a feeling that we were used.”

Persis Yu, deputy executive director and managing counsel at the Student
Borrower Protection Center, said that “student loan borrowers got the bad end of
this deal.”

“Borrowers are in a much more precarious state right now than they were before
the debt deal,” she said.

White House spokesperson Abdullah Hasan disagreed.

“No president has fought harder for student debt relief than President Biden.
The administration announced in November that the student loan payment pause
would end in August — this bipartisan budget agreement makes no changes to that
plan,” he said in a statement.

“President Biden protected the student debt relief plan in its entirety from
congressional Republicans who were threatening to tank our economy unless they
could gut the plan. He stopped congressional Republicans from taking away our
ability to pause student loan payments in future emergencies,” Hasan said.


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He also noted that Biden plans to veto the GOP-resolution repealing the
administration’s student debt relief plan and that, at the Supreme Court, the
administration is defending its plan against “special interests attempting to
deny relief to millions of hard-working Americans, most of whom make less than
$75,000 a year.”




Biden himself has pushed back on criticism that he made too many concessions in
the debt ceiling negotiation process.

As for what he did give up, Biden has stressed that the reality of a split
Congress forced his hand. Neither Democrats nor Republicans, he notes, will get
everything they want. “That’s the responsibility of governing,” he said in a
speech on Sunday.

But that’s little solace for student debt relief groups. They say that Biden
gave up one of the administration’s most important tools to protect borrowers if
the Supreme Court strikes down the president’s plan to cancel up to $20,000 in
federal loans. The court is expected to announce its decision in the coming
weeks, and both the president and debt relief advocates have expressed doubt
that the administration will be allowed to move forward with the proposal.

Should that happen, then extending the payment pause would have been a logical
fall back option, advocates argue. Now… that’s gone.

“Codifying the end of the payment pause before you know how the Supreme Court
will rule on broad-scale relief is reckless and tells student debtors that
they’re bargaining chips not worth fighting for,” said Braxton Brewington,
spokesperson for the Debt Collective.

For the White House, it’s a major gamble though one that has some logic to it.
The president and his team have flirted with ending the payment pause several
times now, only to keep it in place. The debt ceiling deal forces their hand,
and places some of the responsibility on the shoulders of Republican leaders.

Still, the process of getting there was messy. Some Democrats on Capitol Hill
expressed frustration about being kept in the dark during the debt ceiling
negotiations. And some student loan relief advocates say it has led them to
rethink their relationship with the White House going into Biden’s reelection.

“It’s a moment when folks are taking a beat to reassess how we can be most
effective going forward,” said an advocate who asked not to be named to protect
their relationship with the administration.


MOST READ


 1. BIDEN FALLS ON STAGE AT AIR FORCE GRADUATION BUT IS ‘FINE,’ ACCORDING TO
    SPOKESPERSON


 2. ‘DERANGED LEADERSHIP’: OATH KEEPERS FACING JAN. 6 SENTENCES DISAVOW STEWART
    RHODES


 3. SENATE VOTES TO TORPEDO BIDEN’S STUDENT DEBT RELIEF PLAN AMID VETO THREAT


 4. TRUMP AND DESANTIS SPAT OVER A TRUMP-TROLLING BUS IN IOWA


 5. 8 TAKEAWAYS FROM THE DEBT CEILING VOTE

 * Filed under:
 * White House,
 * Student Loans,
 * Debt Ceiling,
 * Joe Biden,
 * Joe Biden 2020


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