President Biden’s Student Loan Forgiveness Program
President Joe Biden’s student loan forgiveness program is terrible fiscal policy. But now it is in danger of collapsing soon. The president himself put it in jeopardy, in large part thanks to his 60 minutes interview broadcast on Sunday, September 18, 2022.
write in National examCharles CW Cooke explains:
On 60 minutes tonight, the president admitted out loud that his decision to transfer up to $1 trillion in student loan debt to taxpayers without congressional approval is downright unconstitutional:
Why is Biden’s statement so important? I’ll tell you: it matters because the memo the Biden administration released to justify its order was based entirely that there is an ongoing emergency, and because, as Biden has just confirmed, there is no ongoing emergency.
Click Cooke’s article to find out what’s legally wrong with President Biden’s student loan forgiveness program. I’m more interested in this trillion dollar cost passed on to American taxpayers. Where does this number come from?
A trillion in national debt to fund student loans
It may come as a surprise, but the US government never had the money to fund the federal student direct loan program. He had to borrow to get this money. Since President Barack Obama signed the government takeover legislation on March 30, 2022, the federal government has borrowed more than $1 trillion.
This is money that has yet to be repaid to people who have loaned money to the US government. These people expect to be reimbursed in real money, which will come from taxpayers. That means forcing the cost of student loan forgiveness on the majority of Americans who have never borrowed a penny to pay for a college degree. It also means shifting the cost of debt forgiveness to millions of Americans who have fully paid off their student loans, so they can pay twice on student loans under Biden’s program. Full disclosure: I fall into this second category.
It also means that the federal student loan program will never deliver the savings that President Obama promised. Here’s how he sold it in 2010:
President Obama’s deal never achieved those savings. Meanwhile, President Biden’s student loan forgiveness program is even worse. Follow this link to find out just how much worse it gets when you dig into its details, and find out how it effectively taxes mechanical engineers to pay drama majors. Full disclosure: I graduated with a degree in mechanical engineering.
In truth, no one needs a college degree to agree that President Biden’s student loan forgiveness program is bad fiscal policy. We shouldn’t have to wait for a court to find it unconstitutional to pull the plug. President Biden should face reality and do it for himself.
This piece was originally published on The Beacon, you can find the original here.