The student loan repayment has been paused and paused…and paused again. It’s set to expire at the end of the month, which would mean that people would need to start paying on their loans again. For some, that will be simple. For others, it could mean defaulting, penalties, and more.
Biden has been talking about what he’ll do. He has promised to do something, and he ran on a campaign promise of canceling $10,000 of student loan debt for every borrower.
Now, he’s made his announcement, but don’t expect it to be fair.
Rather than forgiving $10,000 of debt for ALL borrowers, he has decided that it’s going to come with an asterisk. He’ll forgive the amount but only if you earn an income of no more than $125,000 per year. If you make more than that, you get nothing forgiven.
Using an asterisk for the forgiveness is unfair. It’s actually a bit aggressive. And it shows that those who work hard and make an effort to pay back their loans get nothing. There is no reward. It is evident that the government is moving closer and closer to socialism. Help those who refuse to help themselves while punishing those who work hard to make sure that they help themselves.
This kind of relief, which also extends the student loan repayment for another period of time, could also add to the inflation. Why? It gives more money to consumers to spend on whatever they desire. And that means that any good that would have come out of the “Inflation Reduction Act” would be immediately inflated.
As Breitbart points out, there’s also a moral hazard created with the bailout. People lose faith in the economic institutions. They’ll assume that there will always be a bailout waiting for them, so they’ll take the financial risks without assuming that there is any harm if they don’t actually make the payments as they should.
There’s no academic reform within the proposal that is set to come out of the White House. Universities will have no requirement to create a better education. Students will graduate with no better skills than what they entered the university with – and that means that they will fail in repaying their loans.
Too many universities these days are offering degrees in left-wing concepts like gender studies – and while it helps the left with brainwashing, it doesn’t allow a person to have an education in anything that can help them in the real world.
Biden is, yet again, making a mockery out of the separation of powers. The announcement he just made on student loans is not be something that Congress has worked on. The Democrats and the Republicans have not had a chance to create legislation that would be fair for all while creating academic reform. Instead, it was President Biden picking up his pen and signing an executive order. It’s all that he is good at. He continues to refuse to use Congress so that compromises can be made.
This is a cheap way to ensure that Democrats get a round of applause. Look at what Biden and the rest of the Democrats did – we got your student loan debt reduced AND the payments have been extended. Now, be sure that you vote for Democrats in the midterms. It’s basically a bribe – and one that will work for many since student loan debts are such a financial burden.
The biggest problem is that this kind of behavior sets the tone that spending taxpayer money in such a blasé way can be repeated by future presidents. Biden did it and got away with it, so why can’t I?
