OPINION: How Far From Economic Reality is Joes Student Loan Forgiveness Plan?

Sub­mit­ted by George McClel­lan

By Exec­u­tive Order, Joe Biden final­ly signed his long dread­ed Stu­dent Loan For­give­ness scheme, a shame­less attempt to stem the Red Tide that will soon over­whelm Democ­rats this Novem­ber. By doing so, Joe is inflat­ing the costs of liv­ing for all Amer­i­cans in com­plete con­tra­dic­tion to mon­e­tary facts. Joe claims his debt for­give­ness scheme will only cost the trea­sury (US tax­pay­ers) $240 bil­lion in the next ten years when in fact fed­er­al bud­get observers project the esti­mat­ed debt will actu­al­ly grow between $440 — $600 bil­lion, pos­si­bly a Tril­lion dol­lars even. This can­not be a sim­ple error in Joes judg­ment, its a planned scheme by the far Left Pro­gres­sives to increase Amer­i­ca’s eco­nom­ic woes as out­lined by Saul Alin­sky in his Rules for Rad­i­cals on how to destroy a coun­try from with­in with­out ever fir­ing a shot.

The inten­tion of Joes scheme, obvi­ous­ly, is to buy the youth vote while at the same time, pay off his rad­i­cal sup­port­ers debts and inflate the costs of obtain­ing a near use­less Lib­er­al Arts edu­ca­tion. Col­leges and uni­ver­si­ties, already near­ly as wealthy as the US Trea­sury itself, are noto­ri­ous for rais­ing their costs when­ev­er the gov­ern­ment announces free edu­ca­tion mon­ey schemes. Even so, they still pro­duce high num­bers of grad­u­ates with use­less degrees unable to find employ­ment in Amer­i­ca’s dimin­ish­ing job mar­ket. To any econ­o­my, gov­ern­ment inter­fer­ence by spend­ing funds they dont cre­ate but tax or print, becomes intol­er­a­ble to tax­pay­ers who have no skin in the game. Gov­ern­ment has no busi­ness med­dling in the edu­ca­tion bank­ing sys­tem or guar­an­tee­ing loans. Its unAmer­i­can because it gen­er­ates unsup­port­able costs for Amer­i­can tax­pay­ers by shift­ing tax­pay­er resources to an already bloat­ed edu­ca­tion­al sec­tor. But dont look at Joes scheme as only for­giv­ing stu­dent loans. Hes a Pro­gres­sive Demo­c­rat so look for the hid­den tricks that expose the waste, fraud and abuse of his human­i­tar­i­an ges­ture, apart from vote buy­ing. First of all, as the can­cel­la­tion of some stu­dent debt already exists Joe’s plan fills only a small part of his for­give­ness scheme. Joe also wants to lim­it future pay­ments on debts to 5% of income but, heres the catch, only after the bor­row­ers income ris­es above rough­ly $30,000 per year. What hap­pens if they cant get a job? But, if some­one can earn $70,000 a year, then no mat­ter how much they bor­row theyre still lim­it­ed to pay­ing $2,000 per year (5% of the extra $40,000). After twen­ty years, any remain­ing debt would sim­ply dis­ap­pear.

But the plot thick­ens. For a major­i­ty of stu­dents, Joes income- based repay­ment sys­tem would be a no-brain­er and once they pick it, they would­nt care at all what their col­lege fees costs would be: $85,000, or $150,000. Some stu­dents, in fact, could pick the prici­est col­lege they could find and pay for it all with fed­er­al loan mon­ey, because their repay­ments will be capped. Greedy stu­dents would have an incen­tive to take out loans greater than what they need, turn­ing any excess into cash for cost of liv­ing expens­es. Think about all the good deals out there that free extra gov­ern­ment mon­ey can buy: it could be used to invest in cryp­to, throw cool par­ties, afford gaso­line for their cars all because Joes plan has lim­it­ed their future repay­ments. It is claimed that every cloud (scheme) has a sil­ver lin­ing. Well, this one does­nt, because col­leges would have an added incen­tive to enroll every stu­dent who applies even if they have lim­it­ed earn­ing prospects. Enrolling peo­ple unpre­pared to be edu­cat­ed pro­vides admis­sion offi­cers the incen­tive to charge what­ev­er price they deem nec­es­sary to get those won­der­ful checks from Joes accom­mo­dat­ing gov­ern­ment. The unpre­pared stu­dents wont sur­vive any­way so they wont care because they wont have to pay it back effec­tive­ly allow­ing col­leges to thrive off a per­fect­ly legal gov­ern­ment spon­sored mon­ey-laun­der­ing scheme with­out ever touch­ing the bil­lions of dol­lars in their sav­ings accounts. Such a deal!

We can only hope that smarter heads will kill this scheme. Its prob­a­bly uncon­sti­tu­tion­al any­way. But, with­out a doubt, costs for high­er edu­ca­tion will sky­rock­et out of con­trol to the point that trade schools can only ben­e­fit from col­laps­ing col­lege enroll­ments. The allo­ca­tion of tax pay­er cap­i­tal for polit­i­cal rea­sons is a recipe for eco­nom­ic dis­as­ter. But, so are Democ­rats!

Remem­ber, free­dom is the goal, the Con­sti­tu­tion is the way. Now, go get em! (02Sept22)