May 27, 2025
Surprise, surprise: Biden's student loan mass amnesties leads to a new wave of defaults
By Monica Showalter
Joe Biden's mess to America is the gift that keeps on giving.
Which brings us to the Federal Reserve's findings about student loan defaults rising, as analyzed by the estimable economist, Stephen Moore, writing on HotAir:
Student loan debt soared to more than $1.5 trillion during the Biden presidency, and the response by Washington was to "forgive" hundreds of billions of these unpaid loans by deadbeat borrowers and let the taxpayers pick up the tab.
...
Those of us who watched these events unfold predicted that one result of this policy would be that many college graduates would stop paying back their loans. And guess what?
Just like clockwork, this headline from Bloomberg recently told the whole story: "Student Loans Drive US delinquency Rate to Highest Since 2020."
Gee, who -- except a bunch of head-in-the-sand politicians in Washington -- would have ever thought that forgiving as many people from paying their student loans as possible would increase future nonpayments?
A minor point -- I couldn't find any evidence that these loan-forgiveness recipients were necessarily deadbeats. Biden was looking for votes, so he 'forgave' $188 billion in student loan debt, passing the cost on to those who already paid their student loan debt, or else didn't borrow at all. For Biden, the more, the merrier. So he did it all over, again and again, never mind what the courts said. It's easy to forgive student loan debt if you can pass the cost onto the taxpayer.
But Moore's larger point, that loan forgiveness makes people less likely to bother paying back loans, stands pretty firmly based on this new evidence from the Federal Reserve.
more
https://www.americanthinker.com/blog/2025/05/surprise_surprise_biden_s_student_loan_mass_amnesties_trigger_a_new_wave_of_defaults.html
