Biden Still Has A Problem With Student Loan Debt

Congress, Economy, Joe Biden, Taxation 2 Minutes

Currently in this country, there are 43 million people that have an outstanding student loan debt totaling about $1.6 trillion. Joe Biden has put out yet another proposal to try and buy the votes of those owing money, hoping to win their votes six months up the road.

It’s a bumpy road for Biden for the very least.

The proposal would cancel $20,000 in interest for roughly 25 million people who have exceeded the amount they have initially borrowed. This is because the interest has accumulated while they neglected to make payments, or while the payments were halted during the pandemic. For single borrowers, if they make less than $120,000 a year, or married couples earning less than $240,000 a year, who are enrolled in a repayment plan that is means tested, can apply to have their interest forgiven. And, those with high interest debts, who have had their loans for at least 20 years, as well as those that haven’t already applied to have debt relief, are going to be eligible to have some or all of their debt forgiven. Well, forgiven isn’t the right word. The debt is still there. It just gets transferred to the rest of us taxpayers, many of whom had to pay our own student loans off and never got squat from the government.

Ah, but there’s the rub. Only Congress can pass and implement taxes. The president doesn’t have the ability to do that, so to transfer debt to the nation’s taxpayers is basically implementing a new tax. And while the Supreme Court rejected an earlier attempt by Biden to erase some $400 billion in student debt last summer, he’s at it again. He changed his angle of attack a little bit, citing that the Secretary of Education has the right through the 1965 Higher Education Act to “compromise, waive, or release federal student loans”. And while that may be true, and that part of it may not enter into the argument (since Congress passed it), it doesn’t allow for the Secretary of Education to transfer the debt to the taxpayers. And this one is headed to court.

Of course, Biden is hoping that the courts, being over-burdened aren’t going to hear the case until after the election. And if he wins, he accomplished his goal of getting the youth vote. If he loses, it’s not going to matter to him anyway. Promise broken, so what? Are you going to sue him because the courts decided he couldn’t do it and it was unconstitutional?

Frankly, I don’t see how this is going to help Biden much. He can only try to lower and eliminate the debt. He can’t actually do it because the first thing those opposed to it will do is get an injunction against cancelling or transferring any debt until after the courts have heard all of the arguments, and appeals which will most assuredly happen. And while we’re talking about 30 million people, how many of the other 300 million people that are going to have the debt sloughed off on them are not going to vote for Biden because of this added tax burden? It’s a stupid plan from the beginning and flies in the face of fiscal responsibility. Anyone that backs this (other than those seeking a free release from their obligations), should just plain be ashamed of themselves!

Carry on world…you’re dismissed!

Published by thelonecactus1370

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16 thoughts on “Biden Still Has A Problem With Student Loan Debt”

  1. “buy the votes of those owing money,” For sure. I paid mine off; but my son, I think, still has quite a lot (debt). However, he’s doing alright. I’m proud of him. I don’t know what he thinks about all this. But he lives and works in LA so …

    Liked by 1 person

    1. If I can finish your sentence, it would be…”he is probably being taxed to the hilt already thanks to the uber-leftist liberals hell bent on destroying the nation’s largest state.” Is that going too far???

      Liked by 1 person

  4. The case of Tillie Torres here in Las Vegas is a good example of the problem that Biden is trying to rectify.

    When she graduated from college at 22 with a teaching degree, she had a 42K student loan to pay off. She quickly got a job teaching, but the salary was so low, she could only make the minimum payment.

    However in so doing, by the time she was 35, paying the minimum recommended amount by the government because of her salary, the principle had ballooned to 65K. Now it has grown, in spite of her regular payments for over 20 years, to upwards of 80K.

    Clearly, she did what the government suggested, paying at least the minimum. But how did the loan balance grow? How come nothing came off her principle? Because the loan was in negative amortization.

    Leaving aside the legality of Biden’s actions, should the government be able to do this to people. Especially young people who probably don’t know any better?

    Liked by 1 person

    1. I think you’ve raised the exact question that separates liberals from conservatives on this issue. The question is, “Who’s fault was it?” right? And while I can see your point that the government set the minimum payment for her due to her low wage (just like credit card companies do, charging exhorbitant interest charges, and making the payment so low, you’ll never pay off the debt, it’s the same thing here. Meanwhile, conservatives would say that Tillie had made the choice to accept the loan, and the terms. She should have done more due diligence to figure out what a teacher’s salary would be, and how the debt would figure in to it all. Yes, I would agree she’s in a world of hurt owing more now than she did, but I don’t think anyone forced her to take that loan, did they? Could she have gone to work while in high school or taken a couple of years off to earn enough money to get her degree and then go to college? I’m a firm believer that there ARE options for every situation. Just signing up for a student loan may be the easiest way out, but as we are all learning now, it may not be the best. Personal responsibility still is to blame in this instance.

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      1. I guess my response/point would be I am sure she’s already paid more than her original loan and a decent chunk of interest. The system kinda works like this.

        You start when you graduate with a lower payment and then as you continue to pay, it get’s higher and higher until you pay it off.

        But yes, by the time your done, you’ve for that loan many times over.

        So they’re not really robbing the treasury, especially after 20 years. Most, if not all have paid that debt in full and then some.

        But regardless of the terms, government does not and should not exist to knowing and willingly put people in those types of situations.

        Like in the loan crisis though, I guess we could say hey, “caveat emptor” and “it sucks to be you” and let the ppl hurt by these policies deal with it.

        It does seem to be how many conservative see it.

        Liked by 1 person

      2. Well, I attack it from a couple of different points. The first is yes, taking the “caveat emptor” approach does seem rather cynical, but I am a huge believer in personal responsibility. That said, if someone is in dire need of help, I’m usually at the front of the line. However, in this case, I’m being TOLD I have to be at the front of the line, which I think is illegal (Biden can’t pass taxes, only Congress can). If Congress passed a law similar to what Biden is doing, I wouldn’t like it, but at the very least it would be legal. What he’s doing is transferring the debt of students (and former students) to the rest of us. That’s the part that’s illegal. If he just forgave the loan, it would indeed be legal. But then it would cost the government the billions of dollars. And we really can’t afford that. Always good to hear from you!

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  5. If we do not have to repay educational debts, then why should we have to repay our mortgages or car loans? C’mon, fair is fair. Biden demonstrates that “debt” has no significance to politicians. It’s eye-opening.

    Liked by 1 person

  6. Here’s how I see it.  The U.S. government has steadfastly undermined common sense almost from the beginning of the Democratic Party in 1828 (ish).

    How?

    When the government excuses citizens from their duty, the government diminishes the concept of citizenship … along with the somewhat intangible feeling that we’re all in this boat together.  If the boat sinks, we all go down with her.

    In this case, we’re talking about the ship of state.

    No one should be excused from paying their fair share in taxes.  Paying taxes, serving on juries, and voting are duties of citizenship.  So, too, is paying just debts.  Take away those things, and you take away the citizen’s sense of belonging.

    Not good, Muchachos.

    Liked by 1 person

    1. And there isn’t a single word that can be disagreed with. In our society, personal responsibility is still a thing. It’s what makes you pay your mortgage rather than become a squatter. It’s what makes you pay your car payment rather than have it repo-ed and have to take the bus everywhere. And if you follow this student loan “forgiveness” through to it’s logical conclusion you reach a point where you get cradle to grave socialism.

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