President Joe Biden has officially announced the advancement of his administration’s ambitious plan to eliminate a staggering $49 billion in student loan debt.
Biden’s student loan forgiveness disaster is effectively a regressive tax disguised as a progressive policy. Barely over 1/3 Americans get a 4-year degree, yet Biden’s student loan forgiveness plan forces every citizen to pay for anti-American gender-studies majors. It’s a scam.… https://t.co/fM8bMXi62X
— Vivek Ramaswamy (@VivekGRamaswamy) August 15, 2023
In a statement issued by the White House on Monday, Biden emphasized his so-called commitment to addressing long standing flaws within the student loan system: “On Day One of my Administration, I promised to fight for hardworking families and to fix problems in the student loan system that have been failing borrowers for too long.”
With as much energy as he could muster, he hoarsely affirmed, “I’m proud that my Administration is delivering on that promise and has already approved over $116 billion in debt cancellation for 3.4 million Americans — no matter how many lawsuits, challenges, or roadblocks Republican elected officials or special interests put in our way.”
Biden emphasized the core issues he thinks need rectification, stating, “When I came into office, hundreds of thousands of borrowers weren’t accurately getting credit for student loan payments that should have delivered them forgiveness under Income-Driven Repayment plans or were placed into forbearance by loan servicers in violation of Department of Education rules.”
However, this narrative is completely false. President Biden’s determination to push forward with student loan forgiveness carries dangerous implications that are often overlooked by the general public.
Decades ago, college education was relatively affordable, with the National Center for Education revealing that in 1980, the average yearly cost for a four-year college was $2,845.44, which today equates to about $10,231 when adjusted for inflation.
Today, the average annual cost of college has surged to $28,775 — a staggering 180% increase over the past 40 years. This soaring cost of education is not a mere coincidence, but a result of government involvement. The Higher Education Act of 1965 essentially eliminated the risk banks took on when issuing student loans by making them “taxpayer-guaranteed.”
This move led to an unprecedented surge in the number of loans granted, while the push for a college degree as the ultimate path to a well-paying job further fueled demand. Colleges expanded to accommodate this demand, with tuition increases becoming an inevitable outcome.
President Obama’s 2010 move to federalize the student loan market was intended to resolve the student debt crisis and save taxpayers money, but it resulted in a spike in defaults and ballooning costs, estimated at around $300 billion in over a decade. Ironically, as the government took on a more direct role in funding loans, tuition costs kept climbing.
Since his inauguration in January 2021, the Biden administration, through the Department of Education, has introduced a substantial influx of new debt tallying to over $116 billion, leaving the burden to be shouldered by American taxpayers as they dig us into a deeper financial hole.
