- Massive, socialistic transfer of wealth
- Will increase inflation
- Allows higher-education to continue underperforming/worthless degree programs
- Will cost taxpayers an average of over $2,000 each
President Biden will deliver a speech today during which he hopes to put a positive spin on the extremely expensive taxpayer-funded bailout of student loan debt. The speech will be filled with all the same misdirection, misinformation, and delusion that his speeches on energy, inflation, and infrastructure have contained as we near the 2022 midterm elections.
The transfer of wealth from those who didn’t take out the loans to those who did will be expensive. Estimates range from $400 billion to almost $1 trillion over the next decade, depending on program implementation.
“There’s a transfer of wealth from the society at large to people who borrowed to go to college right now,” said Andrew Lautz, director of federal policy at the National Taxpayers Union. “It has consequences for taxpayers.”
Some experts estimate that the bailout could cost the average taxpayer $2,085.59 each to pay off loans that someone else agreed to pay back – and didn’t or won’t. Those who responsibly saved for college, worked during school to keep debt low, or paid back their own loans, will not get to pay off someone else’s debt.
The program has two other major flaws.
First, it’s inflationary. Biden’s pet project will put more money into an already over-liquid economy and turn the heat up on price hikes as it puts even more dollars on the hunt for too few goods.
Second, it doesn’t fix the over-bloated, over-inflated, low-quality, and broken higher-education system.
Why are students graduating with unsustainable debt loads and unable to find jobs that pay enough to manage the burden? Why are colleges and universities raising prices while, on average, two out of every five students at four-year schools fail to graduate? Why are some of the schools that get the most taxpayer dollars the ones with the worst student outcomes?
Some argue that institutions that consistently produce graduates with degrees that will never be able to pay for them should lose access to student loan funding. Even better, why even allow student loans or other federal aid for underperforming degrees at any college or university? If someone wants to take a crap degree, they’ll need to have the money up-front – I don’t want to pay for it. But now, thanks to Biden, I get to – we all do.
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