On election day, voters with a college education were the only demographic. More likely to support President Joe Biden’s Democratic Party than single women. As a result, it should not have surprised anyone. When Biden announced this past week that, for the sixth time, the Department of Education postponed all student loan payments. He once again showered this constituency with federal funds.
Biden only delayed these payments after former President Donald Trump did. But at that time, the COVID shutdown was at its worst. No one is permitted to work so nobody could pay. In the interim, Biden assured the populace that “the pandemic is over.” Although the unemployment rate is now close to pre-pandemic levels. Inflation rises faster than real wages. Everyone should be able to pay their bills by now, especially the most privileged and wealthy individuals with college degrees.
Biden’s latest justification for postponing student loan payments is that the federal courts need more time to determine. Whether or not his separate but related plan for student debt amnesty is legitimate. Without a doubt, it’s against the law. The 2003 HEROES Act, passed by Congress in response to 9/11. So that National Guardsmen called to active duty in support of a war wouldn’t be required to make student loan repayments. While serving their country.
Biden claims that this law gives him the authority to grant student debt amnesties. The Biden administration asserts that Congress in no way intended to grant. Any president broad the power to discharge all student loans at any time and for any reason.
Biden will lose this case if a federal court grants a plaintiff the right to establish standing. Given that Biden’s student debt amnesty is a terrible piece of public policy. That would be a significant victory for the American taxpayer.
First, Biden’s debt amnesty adds $400 billion in new federal spending to the inflation fire when the Federal Reserve is making every effort to contain it. Even worse, the wealthiest people will receive most of this money. According to Penn Wharton business school estimates, the top 60% of earners will benefit from about 70% of Biden’s debt amnesty.
Accordingly, their more affluent college-educated peers will receive unearned money from the government. At the same time, the cost of living continues to eat away at those without college degrees’ paychecks and rising inflation. What makes that fair?
Then there is the issue of whether this policy will be a permanent change for paying for college. Rather than a one-time amnesty. Because it would give universities terrible incentives to raise prices. If Biden is to make this a new, permanent policy.
Since colleges will be aware that the federal government is footing the bill. They will increase tuition. There will be no reason for students to compare degrees to see which are the most affordable. Additionally, because many student loans are used for housing and tuition, taxpayers would be funding the extravagant lifestyles of students in the most expensive cities. Rich Columbia University graduate students would receive twice as much tax money from the government as low-income workers in Section 8 housing.
Republicans no longer rely on the courts to block Biden’s illegitimate debt amnesty because they will be in control of the House of Representatives come January. Until Biden cancels his bailout of the elite credentialed class, House Republicans should refrain from giving any money to the Department of Education.