Biden Administration to ‘Forgive’ Another $4.9 Billion in Student Loan Debt
“The Biden-Harris Administration has worked relentlessly to fix our country’s broken student loan system”
I seem to remember the Supreme Court saying that Biden didn’t have the power to do this. He is ignoring them and just doing what he wants to do.
Campus Reform reports:
Biden administration announces another $4.9 billion in student loan forgiveness
President Biden’s administration has announced that $4.9 billion in student debt was recently forgiven.
The Department of Education made the announcement on Friday, stating that the student loans are being forgiven as a result of Income-driven repayment forgiveness and Public Service Loan Forgiveness.
$1.7 billion in student loan forgiveness was handed out through “administrative adjustments” to the Income-driven repayment program for 29,700 borrowers.
$3.2 billion was forgiven for 43,900 borrowers through the Public Service Loan Forgiveness.
“The Biden-Harris Administration has worked relentlessly to fix our country’s broken student loan system and address the needless hurdles and administrative inaccuracies that, in the past, kept borrowers from getting the student debt forgiveness they deserved,” said U.S. Secretary of Education Miguel Cardona. “The nearly $5 billion in additional debt relief announced today will go to teachers, social workers, and other public servants whose service to our communities have earned them Public Service Loan Forgiveness, as well as borrowers qualifying for income-driven repayment forgiveness because their payments are for the first time being accurately accounted for.
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Vote-buying.
They’re right that our “student loan system” is broken.
Half the problem is that there is a “student loan system” at all.
The other half is that the federal government is involved in it.
It’s not rocket science: A loan is a voluntary private contract between an individual and a banking institution. If you take out a loan, you pay it back or the banking institution pursues legal action to recover their losses.
Student loan system fixed.
But I have to keep paying on my student loans. I’m okay with paying my own debts but it galls me that so many other people get special treatment.
Public Service Loan Forgiveness has been around since the G.W. Bush Administration, so unless Biden and Cardona are playing around with it (and they might be), they are just taking credit for a predecessor’s work. That’s sort of like how they took credit for Social Security COL increases, which was the work of Richard Nixon.
The claim is that the PSLF program has not been working as intended, because of poor reporting and record keeping, and so people whose loans were supposed to have been written off by now are still being required to pay. Basically the loan servicers were not not doing their jobs, and the borrowers have been paying the price. So they say they’re just fixing the errors and making the program work as it was always supposed to.
How much truth there is to this claim I don’t know, but there’s got to be some, if only to make the rest seem true as well. If they were just making it all up they could count on being back in court very soon, so there must be at least enough truth that they’re confident they won’t be caught on the part that isn’t true (if any).
“The Biden-Harris Administration has worked relentlessly to fix our country’s broken student loan system…”
How does this “fix” when you have to keep injecting 3rd party funds to unwind parts of the system that aren’t working? That seems to be getting worse, creating more people to patronize with pennies on the dollar “relief” appropriated from someone else.
Oh, wait. Given what they’re after, this is better.
… nevermind.
“I seem to remember the Supreme Court saying that Biden didn’t have the power to do this. He is ignoring them and just doing what he wants to do.”
Now it’s Abbott’s turn.
Plus, I’m considering forgiving my income tax liability this year.
This isn’t a bribe it’s a payoff for government employees pushing Democrat causes. Look at the listed constituencies: teachers, social workers, and other public servants. They are already in the tank for Biden, he doesn’t need to bribe them.
Honestly, this is a decent way to do it but it’s still being done wrong.
1. Incentivize these programs for the private sector in heavily needed areas of industry. The kind that will actually benefit the GDP and lower costs in areas that are stressed.
2. Don’t forgive anything. Have people pay their dues as appropriate and just work on improving availability of these programs (and of course do so apolitically)
Biden is doing none of these things.
But that presupposes that these graduates have useful skills. The problem is that too many of them majored in things like grievance studies, or art history, or the Philosophy of Taylor Swift. We’re in a job market with millions of positions begging to be filled, and yet none of these people are suitable for any of them. Repaying their loans (with anything other than money from the universities that defrauded them) serves no public purpose.
That is not true. The supreme court has not ruled on this. It ruled on his attempt to use the HEROES act to do it, and it said that that law didn’t give him the authority. So he started looking around for other laws that did, and claims that he has found a few.
At least one of these rounds was made up of people who under the law were supposed to have already had their loans wiped out, but the system was broken and it didn’t happen, so he simply ordered that the records be brought up to date and corrected. That seems legit. At least I haven’t seen anyone claim otherwise.
The other rounds are similarly claimed to be authorized by one program or another that has already been approved. Anyone who doubts these claims will have to sue, just like the last time.
You want free college? Remember, you get what you pay for. If you pay nothing …
.