YYou’ve probably heard about President Joe Biden’s attempt to make a final run in the courts that are now considering the legality of his executive order for lump sum student debt forgiveness. He is now trying to reduce or eliminate payments for students who are in the payment process. Those privileged enough to have attended college would now have to pay, at most, 5% of their income above 225% of the federal poverty level, significantly less than 10% of income above 150% of the poverty level they now have to pay. .
This means, for example, that a single graduate earning $40,000 at their first job would go from a maximum monthly payment of $172 to a maximum monthly payment of $46. Plus, those loans (for college students, anyway) will be fully forgiven at the end of 20 years, so there are no consequences for borrowers or benefits for taxpayers for such low payments.
BIDEN PUSHES ON CONTROVERSIAL STUDENT LOAN TRANSFORMATION AS ‘ FORGIVENESS ‘ IS MISSING
I find this quite galling, given that I paid significantly more than double $46 alone on the least expensive of my student loans at the turn of the century, and that was back when that amount was worth much more.
But here is the worst part. The student loan program was nationalized in 2010 as part of Obamacare. This was done for a very specific reason: Student loans make money, and the Democrats trying to push Obamacare through were desperate for revenue to cover the costs of the program and make it look less ridiculous. So they mortgaged the proceeds from the student loan program to pay for Obamacare.
Let this be a lesson in how to trust Democrats when they say that a given new revenue stream will be used for a specific purpose, say education or highways. For now, Biden is simply going to give away all the proceeds from the program, the Obamacare funds be damned, and give them to the most privileged people in America. This kind of irresponsible governance is why we hit the debt ceiling once again.
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You know, I could understand if Biden agreed to forgive the debt of low-income college dropouts after, say, five or 10 years of steady payments. No one envy people who are saddled with huge debts and didn’t get any degrees despite all their troubles. But for college graduates? The people with the most to look forward to? And do it with a lie Biden participated in 13 years ago about paying for Obamacare?
Hopefully, none of these attempts to buy the votes of borrowing students will succeed. It is not Biden’s money to bribe people.