As soon as this weekend, President Biden could announce a plan to cancel $10k in student debt per borrower, according to WaPo, citing three people with knowledge of the matter.
Biden could make the announcement at the University of Delaware’s commencement ceremony on Saturday. The plan would apply to Americans who earned less than $150k in the previous year or less than 300k for married couples filing jointly.
On April 6, the White House announced it would extend the pause of federal student loan repayments through August 31. It wasn’t clear if the administration would extend the moratorium beyond this.
The decision to wipe out $10k of student debt per borrow who meets requirements comes as President Biden’s approval ratings collapse.
Notice how the number of stories in the news of “student debt loan forgiveness” is soaring ahead of the midterms, but Biden’s polling numbers remain cratered.
“No decisions have been made yet,” Vedant Petal, a White House spokesman, said Thursday.
The Committee for a Responsible Federal Budget, a nonpartisan think tank, said canceling $10k of student debt per borrower would cost a whopping $230bln.
WaPo said, “most of the nation’s 41 million student borrowers stand to benefit.” Though, who exactly benefits?
Goldman Sachs’ Jan Hatzius found canceling the debt would mainly benefit middle- and upper-income households, contrary to the administration’s claims it would help the working poor.
What this means, and just in time for the midterm elections in November, the Biden administration is trying to buy the loyalty of an entire generation by handing out free money. It comes as Democrats face an uphill battle in the elections.
Biden and Democrats rarely speak about the nasty consequences of student loan forgiveness; they only talk of the positives. As Peter Schiff recently pointed out:
Loan forgiveness would be like Christmas for colleges and universities. College administrators will figure, “Now we can really raise tuition because our students know they can borrow the money and they won’t ever have to pay it back.”
Peter said it won’t likely be a one-time thing. This will create a moral hazard.
If they do it once, they’re going to do it again. Everyone is going to expect it. … The moral hazard there is nobody is going to pay for college. Nobody is going to work to try to avoid going into debt because you’re an idiot. Take on the debt! It’s going to be forgiven.”
The second problem is the US government doesn’t have any money. It will have to borrow billions more to pay for any loan forgiveness scheme. Borrowed money has to be paid back by taxpayers, either in the form of higher taxes or inflation – likely both.
Student loan forgiveness would also pour more gasoline on the inflationary fire. It would be another massive stimulus program. If the Fed forgave $1.7 trillion in student loans, it would basically be like dropping $1.7 trillion from a helicopter.
Student debt cancellation is nothing more than pure vote-buying for Democrats that will only benefit middle- and upper-income households.
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
Not to argue the finer points but the avg. debt looks to be about $29,000 and the avg monthly payment is about $400.
You’re not dumping all that money into the economy at once.
That said, no one has ever paid our debts off. We worked our asses off and did without (paychecks, vacations, nicer cars, etc.) until we honored the contract we signed.
Fuck everyone who thinks someone else should cover them just because.
Fuckin’ A. I want reparations for me, my wife and 2 kids.
Literally buying votes with my money.
FJB.
Absolutely 100%
Means testing is right around the corner for Social Security…. “You spent like a drunken sailor your whole life with your new trucks and leveraged bass boats? Here’s your check!” “You saved your ass off and planned accordingly despite the zero interest rate Fed MF’rs, sorry, you have too many assets!” F these bastards… I grew up lower middle class in South Side of Chicago, took out loans for my degree and then MBA, and paid every single cent back, living frugal and without a gripe. Joe Biden cannot spell moral hazard, despite his whole life being the definition of… Friggin grifter politician… arggggggggggggg
$230bln will make the US GDP just zing along as you go down the gurgler.
This cannot be allowed because it is not equally distributed to all Americans.
Bribery, with money you don’t have, to people who signed a contract to repay is as repugnant as $40 bln to a country in Europe that most Americans could not find on a map.
Keep paying our taxes though while they loot the treasury.
saw a note the other day about Vocational Students don’t have student loan debt problems – they’re all working.
Amen.
Mike Rowe for the win.
TN will pay for a 2-yr vo-tech degree, providing skilled workers for the state’s employers.
Can I get a retroactive reimbursement for what I spent 50 years ago?
I will second that question!!!
And thirded. Absolutely bullshit.
Anything for your vote……..but this is a drop in the bucket for those who studied worthless curriculums and spent the cash on spring break and pizza.
… you forgot the ubiquitous tattoos …
Anything!?!?!?… and that’s why a quarter million illegal aliens are flooding our country every single Fn month! Shaking my head these days makes my brain hurt…. Bizaroo World
Fake money at this point, just drawing out the inevitable return to intrinsic value.
Given what college costs today (not to mention how bad an education the kids get) that is a mere pittance. That will not win that many votes.
I think you’re wrong. Every single person with college debt who gets the $10k, and who actually votes, will almost certainly vote Democrat. The Dems have been buying welfare votes that way for 50 years. It works.
bribery
How can this possibly be lawful?
Sorry, this is ‘Murika. That term has no meaning here.
Bwahahaha haha hahaha ha. They actually expect this bizarro compromise to improve Biden’s ratings.
It seems nearly deliberately meant to piss off both sides of this stupid debate. Especially with a cut-off of 150k per year (are you kidding me that you can’t make payments with those earnings?).
Yep, keep expecting a dramatic turnaround in those approval ratings. /s
Ask someone making $25k a year how they feel about their taxes being given to someone making $145k a year. Then remind them that it is Democrats doing that.
Ignore, don’t know how to post an image
I paid my loans in full. Had 8%non tax deductible student loans from.the 1980s. Am I getting a $10 k rebate?
Rhetorical question.
” $10k of student debt per borrow who meets requirements ”
The requirements include proof of membership in the democrat party. Seriously, most of these debt forgiveness schemes are targeted toward people who are: “heroes” (cops, firefighters, paramedics), teachers, social workers – in other words, government union members. I predict that it will be limited to those whose student loans had gone toward tuition at public institutions. Wouldn’t want to subsidize private colleges, after all.
It will be hilarious to watch some young libs when they realize they’re not included. Sorry, kid. We needed the money for Zelensky’s cocaine.
BTW, I know a guy – age 34 – who expects to have $170,000 of student loan debt – including law school debt – wiped out in a year because he’s been paying on it for the requisite number of years and because he works for a “non-profit” (where he earns > $200k/year). Some people really know how to work the system.
That is the program that b h o pu$hed … work for either government or a ‘non-profit’ for 10 years and the entire balance of your student loan is transferred to the backs of US Working Citizens and Taxpayers — and it’s all tax free …
Biden is a cheap whore son of a bitch. I hope every blue collar worker takes notice that they are paying for the wealthy college graduates to be free loaders.
And the bankers win again. Of the bankers, by the bankers, for the bankers….
I hope I get a REBATE for the $200K+ that I spent educating our children!
Amen, MeToo.
Where does this crap end??? The people who paid the money back get screwed, the tax payers get screwed.
They are going to want their mortgages forgiven, their food paid for, and a pension so they can travel the world!
go to a college campus, and you will hear those exact demands from the “future leaders of America” God help us.
Not cancel, but transfer to the taxpayers..
Just like every dollar the Fed imagines into existence, and every dollar FedGov defecit spends.
Don’t get too hung up on this one, it’s a drop in the bucket of intentional currency devaluation. Said devaluation will inevitably also crush the presumed beneficiaries of this absurdity.
Land
PMs
Food/water
Lead
So … will this ‘forgiven’ student debt become taxable in the year of the forgiveness — just like any and all other forgiven debts are?
The one exception: the student debt ‘forgiveness’ that b h o urged all students to pursue — the entire balance of the loan was ‘forgiven’ if the graduate worked for either government or a ‘non-profit’ for 10 years …
Fuck that fossilized fuck face
Once the SCOTUS allows the government to take people’s money away by threat of force and give as much as they want to whoever they want for whatever they want eventually everyone who works for a living is totally screwed.
You mean like the Income Tax ?
Yup. I hope he’ll correct me if I’m wrong, but I think EWS’s point is that we’ve been totally screwed for a long time. It’s just that, like all Ponzi schemes, it takes some time for the inevitable fallout to be realized. Things are only now starting to come to a head.
So glad I labored for 40 + years to pay for my children college tuition with cash. Those who aren’t parasites will do well over the next couple of decades as the looters run out of stuff to steal.
MeToo; and one became a communist and canceled me. Now I’ll get to pay again.
I certainly can’t speak for every degree, but many organizations have loan repayment of some kind. I received about $30K over 2 years. Degree: pharmacy. Organization: Indian Health Service.
Also consider, if there is no loan repayment for the degree, it isn’t in need.
which will then be recouped by the government because that ten thousand will have to be declared as a gift or winnings and you will have to include it in your income, and that may be just enough to push you into a higher tax bracket, TANSTAAFL-(There ain’t no such thing as a free lunch