Biden’s Student Loan Bailout is Going to Set a Terrible Precedent
“Biden just gave colleges the green light to shake down taxpayers.”
Once you let this genie out of the bottle, there is no going back. It will eventually get worse.
Frederick Hess writes at FOX News:
Biden’s student loan handout will allow college cartel to shake down taxpayers for more
Late last month, President Biden announced a cynical, regressive scheme to have taxpayers “forgive” a half-trillion dollars in student loans. Biden’s plan showers dollars on 20- and 30-somethings with graduate degrees, sticks generations of taxpayers with a staggering tab, and subsidizes the nation’s overpriced colleges.
With his announcement, Biden transformed the student lending program. When loans aren’t repaid they’re no longer loans – they’re gifts. Biden coupled his announcement with other changes that would yet again delay repayment on existing loans and also ensure that fewer and fewer future borrowers would repay their full loan.
The end result: Biden just gave colleges the green light to shake down taxpayers. The question is how to respond.
There’s a need to challenge Biden’s legally suspect executive action in court and to revamp federal lending, but the most urgent task may be to confront the college cartel that benefits from this cash grab.
After all, the whole of that half-trillion dollars has already been pocketed by colleges and universities, and Biden’s proposals (along with Democratic calls for future forgiveness) will make it easier for college commissars to jack up their prices even higher – in the expectation that taxpayers will pick up much of the bill.
It’s time for elected officials to protect taxpayers and stop Biden from triggering even more out-of-control tuition inflation.
College officials with vast endowments have charged eye-popping tuition and then encouraged students to take out student loans (even as they’ve hoarded their endowment funds to pay for buildings and bureaucracy). These same campus bureaucrats are now quietly cheering as their former students pocket taxpayer-funded refunds. If there are to be refunds, they should come out of those heft endowments.
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Comments
It’s worse than that….only suckers are going to want to pay back their loans now. Do you think this will improve repayment rates? It definitely won’t….they will defer, default, declare, change identities, etc. until they can get more free debt clearance.
And before long, the left will consider this debt avoidance the patriotic thing to do.
And for those of you that are thinking “well you can’t discharge student loan debt in bankruptcy”….that is technically correct, but you can delay the hell out of them until a gravy train arrives.
I’m in the wrong business… College administrationing is the way to go!