Student loan debt is a serious issue. Millions of young Americans have gone to college without realizing how much it will cost them, and millions more are still doing so. Here we take a look at how Biden’s student loan fraud works.
Spend enough time in Washington, and you will see that outlandish ideas are accepted as credible policy recommendations. Compelling a Florida technician who attended trade school to pay for a New York lawyer’s bachelor’s degree is near the top of a lengthy list of similar notions emanating from the Far Left.
Elites have been selling education as the universal element to prosperity in a deindustrialized America for decades. While things are steadily shifting, a bachelor’s degree is still projected to increase lifetime earnings by $1 million. However, at a time when inflation is at an all-time high, President Biden is going to ask America’s working families to pay down the privileged student loans. Is that reasonable? The answer should be obvious, but Democrats do not seem to think so.
The president indicated on April 28 that he is “taking a hard look” at debt forgiveness of up to $10,000 per borrower, the amount he campaigned on in 2020. Many have been saying for years that debt forgiveness is completely insane. The reasons are straightforward. President Biden and his supporters appear to believe that money can be decreed into existence and out of existence. No matter what economists say, they are wrong. Debts must be paid, and if the hundreds of billions of dollars owed to the government by students’ debtors are not paid, the burden will fall on all American taxpayers.
This will happen either directly through tax increases or indirectly through increased inflation. When the government gives out money “for free,” inflation is unavoidable. It is why the Biden Administration’s never-ending COVID relief spending has resulted in the greatest price increases in 40 years. The two-year moratorium on student loan debt payments has undoubtedly contributed to this increase, and large-scale debt forgiveness would almost certainly worsen the situation.
Subscribe to GreatGameIndia
It is understandable to want to make things simpler for debt-ridden students. It is simply unreasonable to make everyone else bear their burden for them, whether through tax increases or inflation. Forgiving debt would divert funds from working Americans who have previously paid off student loans—or who choose not to attend college to save money—to the country’s wealthiest. That is a stunningly unjust idea from a government so devoted to “equity.”
There is, however, a better technique to assist students. Debts must be repaid, but the federal government has opted to impose inflated, compounding interest rates on its “generous” student loans rather than just demanding a balanced ledger. This is both absurd and exploitative. Washington should not be in the business of making money off of debt-ridden young people.
My LOAN Act would abolish interest charges on federal student loans. It would be replaced by a one-time, non-compounding finance cost that would be paid over the loan’s duration. Potential students would have total price transparency in this manner. By default, borrowers would be assigned on to an income-based repayment plan, which would adapt monthly payments to the financial conditions of individual students.
The LOAN Act would relieve students of the loan snowball effect, which prevents many young Americans from marrying, settling down, and contributing to their communities. It would also put us on a more sustainable road going forward, as opposed to President Biden’s debt forgiveness plan, which would only set the stage for further debt cancellations in the future.
Student loan debt is a serious issue. Millions of young Americans have gone to college without realizing how much it will cost them, and millions more are still doing so. If not addressed, it poses a severe risk to future generations.
The country has two options for dealing with this issue. We can force working families to shoulder the debt of college graduates. Alternatively, we might enact the LOAN Act, a common-sense policy that would put students on the road to financial stability. I urge my congressional colleagues to embrace this legislation and put the student debt issue on life support—it is the only way to do the right thing for all Americans.