Biden Student Debt Boondoggle to Add $750 Billion to the Deficit

Monthira /
Monthira /

The Biden regime is forging ahead with its vote-buying scheme of “canceling” student loan debt for millions of Americans despite a ruling from the US Supreme Court that this is unconstitutional. The Supreme Court shot down the regime’s initial proposal to cancel up to $20,000 in debt per person. The new rule proposal would impact an estimated 30 million borrowers. The White House accountants are claiming that the plan could cost up to $150 million, but others think the vagueness of how the rule is written could easily cause it to swell the deficit by $750 billion.

There are five categories of people who wouldn’t have to repay their student loans if the new Biden rule is allowed to go into effect:

  • Borrowers with balances higher than what they first borrowed.
  • Borrowers who would be eligible for cancellation through a Public Service Loan Forgiveness program.
  • Borrowers who have spent more than 20 years repaying loans.
  • Borrowers who attended low-financial-benefit schools.
  • Borrowers who are “facing hardships.”

It’s that last category of borrowers that is the most unclear and the most unlikely to balloon out of control, adding up to an additional $600 billion to the cost of the plan. All that the rule says is that it would “authorize the automatic forgiveness of loans for borrowers at a high risk of future default as well as those who show hardship due to other indicators.”

The Foundation for Research on Equal Opportunity (FREOPP) estimates that the costs could run much higher than $750 billion. Depending on how “hardship” ends up being defined in the final rule, it could impact up to 70% of all student loan holders.

Another important thing to remember is that this is not a loan “forgiveness” program. It simply shifts the student loan debt from people who took out the loans and puts it onto the backs of the American taxpayers. That’s not forgiveness—it’s a punishment for people who didn’t take out the loans.

True debt forgiveness is an idea that a shill for the credit card companies like Joe Biden would never think of. That would mean that the borrowers would not have to repay the loans, and the predatory colleges and financial institutions that issued the loans would agree to eat the loss. That would actually be good for the economy, which is why the Biden regime will never do it.

True student loan forgiveness would free up disposable cash for the borrowers. The zeroing out of the debt would have a deflationary effect on the economy, driving prices down, since it takes credit dollars out of circulation (as opposed to Congress printing more money). As you’ve probably noticed though, doing things that are good for the American economy are not on Joe Biden’s radar.

Another interesting thing about this childishly transparent vote-buying scheme is that it’s not moving the needle at all in terms of Biden’s favorability. The regime expects that it will increase the likelihood of younger Americans to vote for him, but that’s not happening according to any polls. Even younger Americans who could directly benefit from this scam still plan on not voting for Joe Biden. Being the worst unelected “president” in American history has consequences.

Under Biden’s not-really-forgiveness program, the American people still end up repaying these debts. The good news is that the plan doesn’t seem to be fooling anyone. You know that your reelection campaign is in serious trouble when you can’t even bribe people into voting for you.