Democrat Biden Tacks Left, Backs Warren Bankruptcy Plan With Student Loan Relief

Democratic presidential hopeful Joe Biden has endorsed former rival Elizabeth Warren’s plan to reform consumer bankruptcy laws including allowing relief of student loan debt, incorporating proposals by the party’s progressive wing into the moderate frontrunner’s campaign.

“I’ve endorsed Elizabeth Warren’s bankruptcy proposal, which … allows for student debt to be relieved in bankruptcy and provides for a whole range of other issues,” Biden said in a digital town hall in Illinois on Friday.

Warren, a U.S. Senator from Massachusetts, suspended her campaign March 5 after a poor showing in primaries that week. That left the more centrist Biden and Vermont Senator Bernie Sanders, a democratic socialist, in the contest for the Democratic nomination to run against Republican President Donald Trump in November.

Biden’s decision to endorse Warren’s bankruptcy plan is significant, showing she and Sanders have moved the party’s policy discussions to the left. It also would reverse portions of a strict bankruptcy law that Biden himself championed when he was a senator.

Warren, who drew passionate supporters, has so far declined to give her highly valuable endorsement to either Biden or Sanders. She and Sanders have been allies on the party’s left wing, and many of his supporters called on her to back Sanders as he fights to revive his campaign after moderates coalesced around Biden.

Her bankruptcy proposal would also do away with restrictive rules that forced people earning more than the median in their state to file for a more onerous form of bankruptcy protection. It would waive fees for low-income people filing for bankruptcy and hasten the process for seeking protection from credit card debt.

Many provisions her plan would eliminate were enacted in a 2005 bill that Biden backed which tightened bankruptcy rules for consumers and made it much harder to discharge student debt.

The former vice president was then a Senator from Delaware, where several financial services and credit card companies are located.

Allies of Sanders and Warren have been pressuring Biden’s team to adopt progressive proposals like a wealth tax, a stepped up estate tax and an equal pay plan, according to several individuals familiar with talks between the campaigns.

Biden and Sanders are set to participate in a televised debate on Sunday, and a key question will be whether Sanders comes out swinging or focuses on pressing Biden to adopt policies he champions, such as a government-paid health care plan.

(Reporting by Trevor Hunnicutt, Amanda Becker and Sharon Bernstein; writing by Sharon Bernstein; Editing by David Gregorio)

Responses

  1. Eliminating student debt is more nuanced than just “I got mine, F.U.”

    Especially after the last recession, wage growth stagnated and states dropped funding for tuitions as they used to do, etc. A lot of people went for re-training with a promise of a brighter future that never really materialized.

    On top of that idiots like Joke Biden made certain that these people would never, ever be able to get out from debt by making sure that they could not claim bankruptcy regarding this debt.

    Now, the total student debt used to be $1.4 trillion (2018). King Donald The Loser just magically created $1.5 trillion to help the economy out in a short-term measure for this virus situation. At some point, it will end. The student debt will continue to be a drag on the economy for decades to come. It was estimated that eliminating the student debt will increase the GDP by $108 billion ANNUALLY over the next 10 years because people will be able to pump more real money into the economy.

    Betsy Devos also is part of this problem because she is propping up scam schools and refusing to do what she was court ordered to do, to help defrauded students deal with debt from phony schools. (I won’t explain that here, go look into it yourself.)

    Yes, you might say “let them suffer, I survived”, but the country as a whole will be much better off if the debt burden was dealt with in a different way. The reasons behind today’s debt are much, much different than when most of you went to school and when prices were cheaper, etc., too.

    1. Betsy Davos has been in office for 3+ years.

      I’m sure those asking for forgiveness and handouts go back further than that.

      WHY aren’t you asking the schools to take responsibility for their part in student debt?

      1. Betsy Devos, under court order, won’t even deal with the students affected by the scam schools. How on Earth can you expect her to deal with legitimate schools?

        Won’t happen.

        1. Again, 3+ years.
          Give some #s for the deadbeats, err, indebted since then.

          You STILL FAIL to hold either the schools or the students accountable. That’s a fail right there. Will you next start forgiving gambling debts? They are so close to the idiots who spend $$ and precious time pursuing degrees that are either not marketable or unemployable.

          Should WE as taxpayers spend $$ reimbursing those who blew their tuition on scratchers? I think not.

          So….whining freeloader, what are YOU doing about a cause you support? Besides running your mouth on line. You might have credibility IF you actually put your money where your typing fingers are.

          1. You keep on proving to the rest of us here, confuction, just what a blithering idiot you really are.

  2. I went to university 50 years ago. Where can I get the form to get the government to pay for my college education . . . including interest for the past 50 year?

    1. No joke! Where do hard working Americans who never went to college because they couldn’t afford it go to get money for college or the lack thereof? Oh wait, not only do they not get money to make up for what they missed out on but Dem/Socialists Warren, Biden and Bernie are proposing they be forced to pay for someone else’s college. In what universe would that be fair?

  3. Why do Warren and now Biden fail to hold accountable those responsible for the debts, i.e. the students AND the schools?

    This asks those who saved, those who worked, and those who paid off their school debts to pay for deadbeats BUT neither the schools nor deadbeats are held to responsibility. What about those who never attended college?

    Accrediting agencies have minimum standards (60%) for vocational schools to successfully place their grads. Why don’t the various degree programs have similar standards?

  4. There is just no end to the depravity of the left, the dumbest SOB’s That Ever Walked the planet, don’t they understand that nothing is free?? Someone pays for absolutely everything. These crazy bastards on the left should be shot. We are miles past the point of Tolerance of this kind of anti-American sabotage… It is time to take up arms and take this freaking country back!!

    1. Make them pay, personally and directly, for those causes they espouse. It’s how charity has worked since forever.

      Nope. They are selfish and children. They want the government to take from EVERYONE to pay for their “shiny” programs.

  5. bla bla bla
    whattaya want to hear
    that’s what Gaffmeister has to say
    no convictions
    no principles
    no backbone
    just a dog face pony soldier
    30330
    BS artist and major pervert

  6. Why did I bother to work full time, go to school part time in the evenings and drive a cab late at night and weekends?
    I did those things so I wouldn’t have a lifetime of debt around my neck and my mother’s teat in my mouth.

    1. I think that is what the Bernie Bros don’t understand. WE worked our way thru college and WE paid our college loans and NOW they want US to pay higher taxes so WE can pay someone else’s college and loans. My husband and I do not have children, but if we WISH to payoff college loans we have great-nieces and great-nephews that we would help. Our friends SAVED to pay for THEIR children’s undergrad degrees–one went on to law school and one earned a MBA, which the girls assumed responsibility for tuition. To ask THEM to pay higher taxes to pay off someone else’s loans does not go down easily. I am as charitable as the next guy, but I am opposed to be taken advantage of.

      1. Why Phyllis, it sounds like you’re starting to get it. This is just more Redistribution of Wealth. We are perfectly capable of redistributing our own wealth thank you very much. Like you I have nieces, nephews and also step grand kids who could use my help with college, cars and everything else. I don’t need the government legalizing theft.

        1. AND worked OUR WAYS either through college or paid for the education of our children (I put four through college) AFTER paying my own way. I paid off a total college debt of $3300 immediately.

          “But school is so much more expensive today.” Really? Why IS that. Why aren’t the colleges held accountable for raising prices? Especially since so many of them already receive millions in taxpayer subsidies.

          I ask again why Socialist bedwettters and others who failed to launch now feel why anyone else should take their responsibility for their debts.

          It’s unjust. It’s NOT charity as the voluntary choice is missing. Let the whiners and schools take responsibility for their choices.

  7. So many people abused the student loan program they had to restrict their ability to include them in a bankruptcy.
    Now they want to make it easier for people who can afford to pay their debts in a booming economy to walk away leaving others to pay it. Yes others end up paying their debts through higher prices. Businesses pass these costs on to consumers just taxes. That’s why they say businesses don’t pay taxes. They are really the middleman. Sounds better to say a business is being taxed. Look up the Townsend act of 1767. Our government has done this for decades with the democrats leading the way.

  8. Still trying to BUY the dumbassced millennial vote with YOUR tax dollars;;all these libocrat losers have got is free free free.

Comments are closed.