Biden’s student loan forgiveness ‘done wrong’: JPMorgan’s Dimon
- JPMorgan Chase CEO Jamie Dimon said Biden’s student debt relief was “poorly done.”
- He told lawmakers he wanted relief to be more targeted to those most in need.
- Democrats noted that this one-time relief is only the first step toward lowering the costs of higher education.
The CEO of one of the largest banks in the United States is not happy with the cancellation of student loans recently announced by President Joe Biden.
On Wednesday, the CEOs of the country’s major banks, including Bank of America, JPMorgan Chase and Wells Fargo, testified before the House Financial Services Committee on topics ranging from the economy to tackling the climate crisis — and student debt relief has also been slashed. In late August, Biden announced up to $20,000 in student loan forgiveness for federal borrowers earning less than $125,000 a year, and JPMorgan’s Jamie Dimon told lawmakers he thought the policy was “poorly done.” “.
“I wish they had targeted people who really needed help,” Dimon said. “They still haven’t fixed the subscription and they haven’t fixed the cost of college.”
“We basically put on a band aid, spent a lot of money and didn’t fix the problem which will now persist,” he added. “So please give him a solution.”
Dimon has previously spoken about the $1.7 trillion student debt crisis, saying in 2019 that “what we have done is a disgrace and hurts America”.
“I think they should look at all the parts of the student loan, fix the broken parts, and then forgive these people. [who] need forgiveness, then help people get to school, and then make sure schools are responsible for getting kids out,” Dimon Told Yahoo Finance at the time.
The idea that relief is not going to borrowers who need it most is a concern also expressed by Republican lawmakers, as well as some vulnerable Democrats. As Biden placed an income cap on the relief that could counter that rollback, Democratic Sen. Michael Bennet – who is up for re-election – said in August the president should have “targeted the relief more” and accompanied it with permanent solutions to cope with the soaring costs of higher education.
Yet, as Democrats and the Biden administration have noted, this one-time relief is only the first step toward solving the problem. House Education Committee Chairman Bobby Scott recently introduced a bill to make it easier to repay student loans in the future while bolstering the Pell Grant, and Massachusetts Senator Elizabeth Warren said that student financial aid would not stop there.
“We have a lot of problems throughout the system. The president did what he could do with the tool in front of him. And that’s he helped ease the debt burden of millions of Americans” , Warren said. Told CNN, adding that “we have to deal directly with the cost of college. Absolutely.”