The Right Stuff: Biden’s student loan forgiveness a scam

By Roger Oberbeck

President Joe Biden intends to forgive $10,000 in student loan debt (arbitrarily $20,000 for those with federal Pell grants) for those with annual incomes of up to $125,000 and $250,000 per household. According to a Federal Reserve study, the median outstanding debt is between $20,000 and $24,999.

This is a gross, negative, regressive and inflationary redistribution of income, taking debt from high-income college graduates and effectively transferring it to lower income workers who did not have the opportunity or choice to go to college. The average workers with less than or only a high school diploma makes $32,188 per year. Salaries increase with each additional level of education to more than $200,000 for physicians. In reality, all students on government loans get a free gift of $10,000 or $20,000 from the government, which only collects or redistributes money. It prints money at its choosing. Penn Wharton puts the cost of this illegal inflationary act at $400 billion. Essentially, 70% of the top 60% of high-income students get the benefit. There would also be a government loss of annual interest of $16 billion. Do they really think lower income non-college graduates are stupid, that they don’t understand they are being stuck with the bill for privileged college graduates who are making much more that they are? This smacks of an attempt by President Biden to buy votes with taxpayer money.[...read more]