Joe Biden is trying to appeal to younger voters as he is expected to launch his bid for the presidency. However, for years, Biden made it his mission to block student debt forgiveness, leaving many young people facing a lifetime of debt.
Biden’s potential candidacy comes at a time when the U.S. debt crisis is reaching unprecedented levels across all consumer sectors.
Student debt broke $1.5 trillion in the first quarter of 2018 according to the Federal Reserve, outstripping auto loan ($1.1 trillion) and credit card debt ($977 billion) significantly, with 1.1 million people owing over $100,000 for their educational expenses. Twenty percent of student borrowers default on their loan payments.
Similarly, almost one in five Americans’ credit reports feature delinquent medical debt. Bankruptcy from growing insurance and prescription costs is also affecting Americans at a precipitous rate. Studies vary widely, but generally between 26 to even 62 percent of bankruptcies cited medical debt as a contributing or even primary factor. A harrowing figure from the October 2018 American Journal of Medicine showed that 42 percent of new cancer patients exhaust their life savings within two years of treatment, with an average loss of $92,098.
Perhaps tellingly, the highest median projected loss in home equity from bankruptcy was in the state of Delaware, with a projected loss of $125,745 according to 2015 data from the American Economic Association. Delaware’s own senator and former vice president of the United States, Joe Biden, is at the center of the decades-long campaign by lenders to eviscerate consumer debt protections, so it seems fitting that his home state would rank at the bottom of the nation in raw numbers.
During the 1970s, isolated anecdotes began appearing in the media about students graduating college and then immediately declaring bankruptcy to avoid their debt obligations. Although a…