Posted on 09/04/2022 5:09:48 AM PDT by Oldeconomybuyer
President Joe Biden’s plan to instantly write off up to $20,000 in individual loans is bad enough, costing the taxpayers north of $300 billion — but the rest of his idea is even worse: He wants to the public to eat most all future student debt, too.
Yes, “Part 1” is horrifically unfair: Folks who chose not to take out such loans, or got them paid off, or never went to college at all, will be picking up the tab for college-educated borrowers with excellent incomes. Yet the rest of the scheme would make this injustice permanent.
Biden would roll back borrowers’ maximum monthly payment on undergrad loans to just 5% of “discretionary” income — and cut the amount of earnings considered “discretionary.” Then he’d wipe out all remaining debt after just 10 years for many borrowers.
The payment limit by itself is huge: The White House boasts it means “no borrower earning under 225% of the federal poverty level … will have to make a monthly payment” at all. And even those earning more than $50,000 right after graduating would face trivial payments — barely denting the principal before Biden sticks taxpayers with the bill.
In short, this is a recipe for nearly free “loans” for an ever-increasing number of people, courtesy of the general public. Until the public goes broke, that is. The Penn Wharton Budget Model estimates the full plan could drive total future costs toward $1 trillion.
(Excerpt) Read more at nypost.com ...
Not to worry, soon the number of tax paying americans will be so few the house of cards will collapse.
I’m pretty sure Biden and the executive branch in general can’t do any of this. They can propose this to Congress to take up, but it’s not in their ken to enact any of it.
And if they try to enact any of it through EOs or bureaucratic policy, the legal rebuke should be swift and decisive.
I think we all know that won’t happen though.
It seems like it be possible for a lot of older people, who are retired, to just borrow money for college, go and debate with Leftist professors for 4 years, and then, based on a retirement income of $50,000 or less, never have to pay for any of it. It would be like a hobby.
America where “me” comes first. Vote for the party that gives you the “me” free stuff. Forget the country as a whole, just consider the candidates that satisfy the “me”. Isn’t that the America of today? Freedumb is the new freedom.
It's not a bill that has to be passed by Congress, is it? If it's not a bill that has to be passed by Congress, is it legally valid given that Congress has to approve the budget?
I’ve saved enough for my grandchildren’s college. But this deal is too good to pass up. Best to take loans under these terms. My savings will be freed up for nicer things, like a mid-engine Corvette.
Just paying the colleges to keep indoctrinating future democrat voters.
Not one Dem voted against this legislation.
Biden wants to abuse a military funding law of 2003 to pay the student loan bribe offers of the 2020 election.
However, funding bills for armies are limited to two years by the Constitution.
Bkmk
I owe 70k. By my estimates I will have 10k forgiveness now. Then under the payments plan I will mostly be in retirement and the most I will have to pay is 8k.
I'll admit to not knowing a heck of lot about economics beyond 2 college semesters where "supply and demand" is what I really remember.
I'm honestly surprised the "house of cards" hasn't already collapsed. Probably when it does happen, Democrat "economists" will tell us it was "unexpected".
Looks like Bernie’s wet dream is coming true.
Free college education for all!
Everything beyond the first few weeks of Microeconomics and first few weeks of Macroeconomics is (IMO) a waste of time.
9th Century Viking traders already discovered the important stuff.
Biden can subsidize college with $100,000 of "free" money and subsidize electric cars with $100,000 of "free" money and all it is going to do is raise the price of college and electric cars by $100,000.
This is an awful program and should be laid at the hands of the government and bureaucracy several times over. It’s a classic example of creating fake problems and the solutions are real problems.
My student loan hero friend (paid off undergrad and law school in 2years) was required to have a law degree before she could sit for a bar exam. Why is that? If she could have worked for a firm and studied the law as she went and took the bar exam when she was ready, there would have been no need to take out loans for education.
A lot of states require teachers to earn master’s degrees within the first five years or so of initial certification (not to mention initial requirements can be onerous). So…making a first time professional in a low paying profession obtain more expensive education in their lowest earning years is going to force a lot of folks to feel like they need the loan to survive or they need to leave the profession. Remember this next time we hear of a teacher shortage.
We have so many examples where the loans could have been avoided in the first place.
The most galling part of Biden’s scheme is that it subsidizes academia…
I remember going to the Community College of the Air Force back in 1980. I went to school, didn’t pay anything, but to get that I served my country. If you want the citizens of the US to pay for the education of others, what contributions will they make for this country to “deserve” that benefit?
Serve your country for four years, go to college while serving and when you get out, you are a veteran and can use things like the GI Bill or other veterans programs to help offset the cost of school. Or better yet, you don’t want to go into the military or serve your country, make it a “voluntary” donation on your tax form with how much you want to contribute. See what you get back....
I have school loans. I’m 62. I pay them because I am responsible for them. However, if you are not doing something to serve your country, don’t take it out of my taxes for someone who didn’t do squat to deserve a kickback.
In fairness, not one Dem voted FOR it either. Dictatorship.
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