Think Biden’s student loan write-offs are unfair? Just take a look at the fine print
By Post Editorial Board
September 3, 2022 7:45pm
President Joe Biden’s plan to instantly write off up to $20,000 in individual loans is bad enough, costing the taxpayers north of $300 billion — but the rest of his idea is even worse: He wants to the public to eat most all future student debt, too.
Yes, “Part 1” is horrifically unfair: Folks who chose not to take out such loans, or got them paid off, or never went to college at all, will be picking up the tab for college-educated borrowers with excellent incomes. Yet the rest of the scheme would make this injustice permanent.
Biden would roll back borrowers’ maximum monthly payment on undergrad loans to just 5% of “discretionary” income — and cut the amount of earnings considered “discretionary.” Then he’d wipe out all remaining debt after just 10 years for many borrowers.
The payment limit by itself is huge: The White House boasts it means “no borrower earning under 225% of the federal poverty level … will have to make a monthly payment” at all. And even those earning more than $50,000 right after graduating would face trivial payments — barely denting the principal before Biden sticks taxpayers with the bill.
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https://nypost.com/2022/09/03/think-bidens-student-loan-write-offs-are-unfair-just-take-a-look-at-the-fine-print/
