Posted on 08/25/2022 5:48:24 AM PDT by karpov
Yesterday morning, President Joe Biden revealed his administration’s plan to forgive billions of dollars in student loans. According to a White House Fact Sheet, the plan will forgive up to $20,000 in federally held debt for students who received Pell Grants and up to $10,000 for students who did not. Forgiveness applies to individuals earning less than $125,000, with an income ceiling of $250,000 for married couples. Additionally, the Covid-era pause on student-loan payments will be extended until December 31, 2022. The plan also allows borrowers with undergraduate loans to cap repayment at just five percent of monthly income.
Critics on both sides of the aisle have already panned the plan for its many critical problems, including:
1. It’s regressive. Biden’s debt cancellation plan includes borrowers with household incomes of up to $250,000, an amount that puts such couples in the top 10 percent of income earners nationwide. A Penn Wharton budget model estimates that “between 69 and 73 percent of the debt forgiven accrues to households in the top 60 percent of the income distribution.”
2. It penalizes the 286 million Americans with no outstanding student-loan debt, including many who never attended college. Dr. Beth Akers of the American Enterprise Institute tweeted yesterday, “Only about 1 in 5 Americans hold student loans. The other 4 will be on the hook to pay their share of the hundreds of billions we will spend on Biden’s loan cancellation plan … but will see no benefit.”
Also excluded are the millions of borrowers who refinanced their student loans through private lenders and those who borrowed from sources other than the federal government.
3. It’s costly.
(Excerpt) Read more at jamesgmartin.center ...
Correct.
This will lead to cancellation of all debts at some future time, hopefully peacefully.
It’s nothing but a naked attempt to buy votes for this November. Biden apparently thinks that the Millennials/GenZ voters will be enough to counteract the ‘red wave’ on election day.
Who has standing to challenge it? I agree that it’s obviously illegal. Presidents cannot make budgetary decisions of this magnitude without congress, but who has standing?
Biden has no authority to do this.
Of course Obama had no authority to do DACA, but we don’t have an opposition party that will sue to stop it, like they refused to stop DACA.
It’s pure BS, I wish the GOP had been prepared and enabled a lawsuit today.
Fiasco indeed
It also doesn’t rebate those who paid back the loans they sacrificed to pay off.
If the system was completely corrupt then all the victims should be compensated.
Just another expensive RAT election season stunt. FREE MONEY! It’s time the government pays a shrink to see if Obiden has any brain cells left.
U.S. Student Loan Forgiveness Has Borrowers Hoping for Vacations, Medical School
Reuters via US News ^ | August 25, 2022 | By Kanishka Singh
Posted on 8/25/2022, 8:33:22 AM by Oldeconomybuyer
WASHINGTON (Reuters) - Americans bearing heavy college debt loads welcomed U.S. President Joe Biden’s announcement on Wednesday that he would forgive $10,000 in student loans, and some shared hopes they can jettison extra work hours and perhaps take a vacation or return to school.
“I would not have second thoughts when planning a trip or going on a vacation,” said John Paul, 49, a restaurant manager in Washington DC who said he took out loans for his son’s tuition. “Earlier, it would be at the back of our mind that we have this debt hanging over us. Now we are somewhat relieved.”
Vincent Joseph, who graduated in 2019 and currently works at a lobbying firm in Washington, said he was happy to hear his remaining $6,500 of debt was likely to be relieved.
“There could be an entire next generation that does not have to work extra hours or additional jobs to repay this debt,” he said.
Kyra Taylor, an attorney with the National Consumer Law Center who focuses on student loans, described the step as “life changing for millions of Americans.”
Taylor, however, added that the plan does not do enough to help borrowers with larger balances, like many Black Americans, who experts say face heavy debt burdens.
“The administration should take additional actions to address racial inequities that the student loan system has exacerbated, and that means Black Americans, and especially Black women, are burdened by more student loan debt just to access the same opportunities as others,” she told Reuters.
(Excerpt) Read more at usnews.com ...
Get the government out of the school loan business and colleges will have to stop constantly raising tuition (or let the schools handle the tuition themselves)
Folks, the student loan wipeout is really a precursor to the real plan which is to forgive us of our bank accounts.
Yep, the next step is the govt just auto-withdrawing our bank accounts.
Who’s gonna stop them? The FBI? The FDIC?
Mass debt forgiveness will morph into mass bank account withdrawing.
“It also doesn’t rebate those who paid back the loans they sacrificed to pay off.”
Or those who sacrificed to pay $95 a month for the better part of 17 years into a state college fund so their child would not have to take out loans.
I see that he failed his Econ 101 course. Probably a couple of times.
That may be the goal. He knows it is unconstitutional (or he should), but when Republicans try to block it, it becomes a campaign talking point about the mean, heartless GOP.
That's why they surreptitiously enable a third party to bring the suit with some under the radar support.
Question: If you or I owe a debt to someone else, and they forgive the debt, the IRS will say that is taxable income. Will these “students” owe taxes on this income now?
Are they white, Christian, and Conservative? If they aren't, then probably not.
I paid my student loan back. Do I get reparation or something?
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