America is experiencing inflation, gas prices are the highest are some of the highest in U.S. history, and the Biden administration is planning a money transfer to the richest segment of the American population.
On Monday, during a meeting with the Congressional Hispanic Caucus, President Joe Biden shared he was moving toward implementing student loan forgiveness.
The president didn’t get into specifics, how much would be canceled or for whom, but he had campaigned on canceling $10,000 worth of student debt per student. One lawmaker in attendance took his comments to mean Biden would cancel all student debt but CBS News clarified that Biden didn’t mean “all” but would be “open to going beyond what he originally vowed as a candidate.”
Nor did the president get into how, exactly, this kind of “cancelation” would be possible. Would the lender simply forget about it? Would the government actually make payment on these loans? Or would debtors simply get a check in the mail?
A few weeks ago, the administration extended the pandemic-era pause on student loan payments, with waived interest, until August. Why? We’re in a time of incredibly low unemployment. Why put off the payment of this debt?
And why, of all debts, is the student loan one the focus from the president? People are struggling to put gas in their cars to get to work or pay astronomical electric bills. Why should a basket weaving major at Super Expensive Private University get her debt paid off while a refrigerator repairman continues to struggle with enormous price hikes on everyday items due to BidenInflation?
The plan to “cancel” debt accrued while attending college is a plan to transfer wealth from the poor and middle class to the wealthy.
The Chicago Booth Review, a publication out of University of Chicago’s Booth School of Business, found “While the highest-income groups have about twice the student debt as the lowest-income groups, research finds that across-the-board loan forgiveness would disproportionately benefit the rich, saving them well more than twice as much money” and would make income inequality worse.
It makes sense. The son of a plumber, who went to a local college, lived at home and worked while attending school so he could graduate loan-free, instead of partying for four years at a lavish private university with rock climbing walls and luxury dorm rooms, would now be responsible for the ramifications of someone else’s bad choices.
FILE – President Joe Biden at the White House Easter Egg Roll on April 18.
(AP Photo/Andrew Harnik)
It also doesn’t help that this handout doesn’t come with any plan on what to do going forward. The people not paying their debt today are in a great time for employment. What about the people who graduate in four years or eight? What if there’s a recession or worse? How many more university debts are we signing up to pay? If the system is broken, and it is, why continue to let it function as is?
Senate Minority Whip John Thune is introducing a bill to stop the Biden administration from canceling the debt. The bill would also prevent the administration from indefinitely pausing the debt or exempting people making over 400% over the poverty line from participating in any pause.
This is absolutely a moment where Republicans have to fight back and clearly make the case about this wealth transfer. This isn’t debt forgiveness. This is debt-someone-else-pays-it.
Karol Markowicz is a columnist at the New York Post. She has also written for Time, USA Today, The Observer, Heat Street, Federalist, Daily Beast and elsewhere. Follow her on Twitter @Karol.