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Mo News: The High Cost of Higher Education
Mosheh Oinounou
August 26, 2022
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Hey everyone,
It was a jam-packed news week - and it's not winding down for the weekend. So much for Summer Fridays.
We break down both sides of the student loan debt forgiveness debate;The legal limits of Biden's move to erase student loans. Can it survive in court? Will canceling student debt actually worsen inflation?
We may see parts of the redacted FBI Trump search warrant affidavit today;
Novak Djokovic will miss US Open over vaccine restrictions;
Tattoo lovers, beware: the latest warning from researchers on inking up
And, of course, what we're watching, reading, and eating this weekend!
🎙Check out our Three-Part podcast series with former CIA Director Michael Morell on the state of the world. Episode 1: China; Episode 2: Al Qaeda + Afghanistan; Episode 3: Russia + Ukraine
🎓 SWEEPING STUDENT LOAN FORGIVENESS
President Biden’s decision to wipe out half a trillion dollars in student loans has drawn equal amounts of praise and fury. It’s kicking off yet another heated debate across the country: supporters see the move as a win that will offer relief for millions of Americans – but critics, including some from the President’s own party, point to a number of costly problems with the move. ~ New York Times
The relief: Biden’s plan will forgive up to $20,000 per year for borrowers earning $125,000 or less per year, or couples earning less than $250,000 per year.
Looming legal trouble: Legal challenges are expected for two big reasons. One, because President Biden used an Executive Order to sign his plan into law, instead of passing a bill through Congress. Two, because the Biden administration is using a law intended to help to members of the military to justify their authority to cancel student debt. ~AP NewsThe ‘HEROES’ Act: The Biden administration believes it has the authority to cancel student loan debt under the ‘HEROES’ Act – passed in 2003 by President George W. Bush to alleviate the burden of student loans from U.S. troops who were fighting in the War on Terror. It gives the Education Secretary the authority to waive rules relating to student financial aid programs in times of war or national emergency.The Biden Administration argues the Covid-19 pandemic is now the national emergency that allows them to invoke this rule. But, things have improved since the first pause on loan payments was instituted at the start of the pandemic in March 2020. The unemployment rate for those with a bachelor’s degrees or higher is just 2%. Skeptics argue that it will be hard to make the case that college graduates are still facing an unprecedented crisis.
Many Americans are cheering on Biden’s decision.Supporters say the President has finally fulfilled a key campaign promise to help Americans drowning in debt. 53 percent of federal student debtors owe $20K or less, according to Education Department statistics which means $10K-$20K in forgiveness will have a significant impact for millions. ~Washington PostStudent loan forgiveness can also reduce disparities in minorities. Estimates say black college graduates owe an average of $25,000 more in student loan debt than white college graduates.
Educationdata.org
Some predict canceling student loans could help boost GDP and lower unemployment. It could also give entrepreneurs the means to start a business, and help people finish their degrees who otherwise may not have.
The decision to slash student loan debt has also ignited outrage.For one, it doesn’t address the root problems of the soaring cost of a college tuition. Critics say the move will give universities a reason to raise tuition more... and some think it could even embolden students to borrow more, if they believe debt could be canceled again.
The cost will fall onto taxpayers – some of whom already paid off their student loans, or who didn’t even attend college because they couldn’t afford to take out a loan in the first place. Critics believe it’s an unfair burden to place on those individuals. An independent analysis found that the plan will cost the federal government north of $500 billion.It’s even dividing Democrats: Some of them say Biden's plan doesn't go far enough, while others say he's gone too far.Democrats like Sens. Chuck Schumer (NY), Elizabeth Warren (MA), and Raphael Warnock (GA) wanted $50,000 in relief per borrower. Progressive members of the party say Biden should erase all student debt.Then, you have Democrats who warn the move will only make inflation worse. One outspoken critic was Jason Furman, a former economic adviser to President Obama, who explains why Biden’s decision is “highly problematic” for a number of reasons. “Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless,” he wrote.
This is the scathing headline from the Washington Post Editorial Board: Biden’s student loan announcement is a regressive, expensive mistake.Some critics also say the move is purely political – an attempt to effectively buy votes from younger voters, just two months before the midterm elections.
But it's a risky midterm strategy. Wiping out student loans could be a tough sell for vulnerable Democrats who are fighting for re-election in key battleground states - a sign that Biden’s move could alienate swing voters in November.Republicans believe voters will reject a policy that forces taxpayers to pick up the tab on others’ loans. It also fuels their argument that Democrats aren't solving the issue most important to voters: inflation.And then there’s criticism that canceling student debt cancellation doesn’t help those who need it most – a point echoed by both Democrats and Republicans. Rep. Tim Ryan, a Democrat from Ohio who’s locked in a tight race for an open U.S. Senate seat, said the move sends “the wrong message to the millions of Ohioans without a degree working just as hard to make ends meet.”
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🗞 THE SPEED READ
A redacted version of the affidavit used to obtain a warrant for former President Trump’s Florida residence will be unsealed today by noon ET — and could contain bombshell details into the motive behind the search. The affidavit will expand upon why investigators believe there is evidence that a crime may have been committed at Mar-a-Lago. Though the Justice Department has redacted the documents to protect an ongoing investigation, which means it will also likely contain a numerous pages where the majority of the document is blacked out.
As Ukraine marked its 31st Independence Day Wednesday, 22 people, including an 11-year-old boy, were killed after a Russian rocket hit a train station in the town of Chaplyne.
Tennis icon Novak Djokovic has withdrawn from the upcoming U.S. Open, because of the US CDC requirement that requires foreign visitors to be fully vaccinated. Djokovic took to social media to announce the news, saying: “Sadly, I will not be able to travel to NY this time for the US Open … Good luck to my fellow players!"
Marines look back 1 year after the Abbey Gate attack (Marine Corps Times)
Today marks one year since the devastating attack at Kabul’s International Airport, where 13 U.S. troops died when an ISIS-K terrorist triggered a suicide bomb. The U.S. service members were desperately trying to help a flood of Americans and our allies flee the Taliban’s control and find safety, even at the cost of losing their own lives. The 13 fallen soldiers included 11 Marines, one Navy corpsman, and one Army Staff Sergeant – marking the deadliest day for U.S. troops in a decade. The troops were killed along with 170 Afghans who were caught in the explosion.
Zoom boom meets doom (Axios)
Zoom and Peloton, two companies whose stocks boomed in the early days of the pandemic and the months that followed, are now starting to fall as people return to office and resume normalcy. Software company Zoom went down roughly 16% this week, and Peloton announced a near 20% decline. In 2020 alone, shares of Peloton and Zoom were up 400%, while other companies utilized during stay-at-home orders rose about 200%.
Scientists are raising concerns about the quality of tattoo ink, claiming the ink is not always properly labeled, could hold carcinogens, and could even contain unknown ingredients. Although tattoo ink is injected into the skin, it is not considered a medical products. Instead, it’s regulated as a cosmetic product, and therefore ingredients do not need to be approved by the FDA (with some exceptions). As a result, modern tattoo ink is sometimes made from products that are not crafted for skin, like printer ink.
CNN projects 25-year-old Maxwell Frost to win the Democratic nomination in Florida’s 10th Congressional District – meaning he could be the first member of Generation Z elected to Congress. Frost beat out a crowded field of candidates with political experience ranging from the House of Representatives to the Florida State senate. "I didn't run to be the first Gen Z member of Congress, I so happen to be 25 years old," Frost said to reporters. "My age gives me a different perspective, but we need different perspectives in Congress so that it can really work for everybody."
🎉 CHEERS TO THE FREAKIN' WEEKEND
What We're Watching: The kickoff to college football! All eyes on Miami's new, neon 'Miami Nights' uniforms 👀
What We're Reading: Ali Vitali's new book 'Electable' hit shelves. Stay tuned for a great conversation on the podcast next week. 🎙
What We're Eating: Rihanna's new ketchup-themed makeup line... that might actually be ketchup. Unless you're more of a mustard person, then Oscar Mayer Wieners has a new 'Cold Dog' - the first ever hot dog flavored popsicle... complete with a drizzle of mustard. 🌭
[Top Banner Photo Credit: Getty Images]
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