Republican-led States Sue Biden Administration Over Student Loan Forgiveness | Podcast Discussion

This podcast discusses student loan forgiveness and the politics surrounding this hot-button issue between Republicans and the Biden administration. The original video can be seen on my YouTube Channel.

Several points were discussed in the podcast, where I dug deep into these issues. Below is a summary.

First is the fact that Republican-led states are suing the Biden administration to prevent student loan forgiveness. This lacks all common and financial sense because forgiveness would benefit the economy of those towns, cities, and states. Not to mention that states can’t tell the federal government how to spend their funds.

You don’t have to like math to know the formula is simple enough: if residents have more money to spend, that increases tax revenue.

But if states even decide to tax their residents on student loan forgiveness, like Indiana (former Vice-President Mike Pence’s state), common sense is that residents will relocate to other states. When that happens, guess what happens to that state’s tax revenue? It leaves with the resident to the new state.

Mind you, those Republican-led states have no issues with tax cuts for the wealthy or having their PPP (Paid Protection Program) loans obtained during the coronavirus pandemic forgiven.

Here are those states: Alabama, Alaska, Arkansas, and Florida. I like to say Flori-duh. Georgia, Idaho, Iowa, LA, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, Texas, and Utah.

Alaska is definitely at the top of the list for hypocrisy, considering that the state gives residents a subsidy each year from the Alaska Oil fund. Wait, did I say subsidy? I meant to say an “entitlement.”

However, the more significant issue is the misinformation and disinformation being spread about student loan forgiveness, as if it is only an issue for recent graduates.

Student loan forgiveness could provide financial stability to those aged fifty-five who are still paying their student loans decades later. On average, they owe more than $50,000. This prevents that age group from preparing financially for retirement and increases public assistance.

• The Silver Tsunami of Student Loan Debt

So, how does that help those Republican-led states financially? Simply, it doesn’t. It’s a political talking point with no consideration of its financial impact on their states. Just compare it to the success of the Smart Buy Program in Illinois with Governor Pritzker where the state provides down payment assistance for homebuyers including student loan forgiveness.

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Updated March 16, 2025.