Thursday, February 22, 2024

Biden’s Desperate Student-Loan-Relief Giveaway

National Review Online

Thursday, February 22, 2024

 

If President Biden were to spend even half as much energy trying to secure our southern border as he is spending finding ways to transfer the debts of American college graduates to the taxpayer, the flow of illegal immigrants would by this point have slowed to a trickle. On Wednesday in Los Angeles, the president announced that 153,000 more borrowers will have their student loans “canceled” — which, in practice, means paid by the people who didn’t take them out and spend them — at a cost of $1.2 billion. In January, Biden “canceled” 74,000 loans, at a cost of $5 billion, bringing the total cost to that point to more than $130 billion. By the time he is finished, Penn Wharton records, the president will have spent $475 billion on the program. Never, in the history of buying votes, have so many been so fleeced for so few.

 

Last year, the Supreme Court held that Biden’s effort to “cancel” up to $20,000 for every borrower in the United States was illegal — a fact that Biden knew all too well. Astonishingly, he responded to this rebuke with rank defiance, vowing that he would “stop at nothing to find other ways” to achieve the same aim. And so he has. Biden delivered the news to the affected students in an email that contains five uses of the word “my” and five uses of the word “I,” and is signed “Joe Biden,” but at no point refers to “Congress” or the “legislature.” This, suffice it to say, is not how the United States government is supposed to work — especially when it is transferring nearly half a trillion dollars from one group of citizens to another. At best, Biden has found a way to achieve piecemeal what he was prohibited from achieving in one fell swoop. At worst, Biden is thumbing his nose at his oath to uphold the Constitution. Either way, it is a disgrace — and all the more so coming from a president who promised to restore American norms.

 

As policy, the move is absurd. The notion that college graduates needed massive subsidization was ridiculous enough during the worst days of Covid-19, but now? After the pandemic has passed? The idea is insulting. “Don’t tell me what you value,” President Biden likes to say. “Show me your budget, and I’ll tell you what you value.” Well, two can play that game. At the time of writing, the national debt stood at $34,270,642,133,307. By current projections, the 2024 federal budget deficit will be $1.5 trillion. That, against this disastrous backdrop, President Biden believes that his fiscal priority ought to be shoveling money to people with the privilege of a college education is incredible. Per the Pew Research Center, there exists “a growing earnings gap between young college graduates and their counterparts without degrees,” and that gap only “widened as a result of the coronavirus pandemic.” College graduates have better employment prospectsbetter health outcomes, and lower divorce rates than everyone else. Despite this, the federal government chose to spend around a quarter of a trillion dollars during the pandemic on an unnecessary pause in student-loan repayments. Now it wants to double that number with an amnesty?

 

Quite why Biden is so obsessed with this course of action is never fully explained. In his letter, he says that he wants “to fix student loan programs,” but, of course, he has done no such thing. He has made no effort to reduce the cost of college, he has proposed no changes to the way higher education works, and he has done nothing that affects the funding mechanisms for anyone outside of the current tranche of debtors. Elsewhere, he insists that debts represent “a barrier to opportunity.” But he does not extend that logic anywhere else. Business loans make life more difficult for their holders, as do mortgages and car payments. That, in spite of this, he has exhibited a monomaniacal focus on college students — and in particular on graduate students, who hold 56 percent of all student debt — suggests that the only “opportunity” in which Biden is interested is the opportunity to shore up his political base in an election year. One way or another, he must pay a price for it. We already have.

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