(John Ransom, Headline USA) President Joe Biden, reeling from defections by younger voters, moved to forgive more student loan defaulters, according to CNN.
Can any lib explain why student debt is somehow morally superior and worthy of cancellation at the expense of the working class compared to mortgages, car notes, business loans, and any other huge number of examples?
— Bonchie (@bonchieredstate) April 16, 2022
“Student loans were never meant to be a life sentence, but it’s certainly felt that way for borrowers locked out of debt relief they’re eligible for,” Education Secretary Miguel Cardona claimed in a statement.
A survey conducted by Gallup found that President Biden’s support among younger voters had suffered the most out of any voting demographic measured.
Biden had extended the COVID debt collection pause for student loans until Aug. 31, 2022, and many speculate that he will eventually forgive all existing student loans in full.
The Department of Education claimed in a statement that the newest programs were meant to drive student loan “forgiveness by addressing historical failures in the administration of the federal student loan programs.”
It is unclear whether the federal government—which entered into the loan-shark business during the Obama administration—will continue to allow future students to incur massive amounts of debt after enacting such amnesty, which is likely to drive up costs and inflation even more.
But ignoring the obvious financial consequences, Biden emphasized the defaulters’ systemic victimhood instead.
“Restarting repayment will financially destabilize many borrowers and their families, and will cause hardship for many who could not afford repayment,” he claimed in a statement when announcing the previous extension of the pause, according to Forbes.
The latest administrative relief from the Biden administration will forgive about 3.6 million borrowers their loans, through an Income-Driven Repayment schedule, said CNN.
Those who already are in default on student loans will receive a “fresh start” when forbearance supposedly ends at the end of August, as long as they begin making payments, Cardona said, according to Fox News.
Leftists claim IDR incentivizes loan repayment because the payments are lower, based on a person’s income, and gives more loan forgiveness if the payments are made.
Student loans under the IDR program also will enjoy credits for the time that the loans spent in forbearance without any collection activity because of COVID.
The administration contends that loan servicers have steered borrowers to programs that require them to pay more interest and principal than other programs available would have.
“Borrowers steered or inappropriately placed into long-term forbearances miss out on critical progress toward IDR and PSLF forgiveness; this can set them back years,” it said.
