1. It’s illegal.
Even Nancy Pelosi said earlier this year that no president has the unilateral power to forgive student loans. Even she acknowledged that power belongs to Congress. The president is fallaciously and dishonestly using emergency Covid powers to do this.
In the ensuing litigation to stop this plan, the administration will have to argue that this move is related to Covid response. It’s clearly not and therefore illegal.
2. It’s regressive.
I opposed the bank bailouts and car manufacturer bailouts for similar reasons. This student loan bailout transfers the debt of people with plenty of income and potential to make income onto taxpayers with less income and less prospects for earnings.
In this setup, taxpaying adults like teachers, cosmetologists, personal trainers, welders, mechanics, plumbers, electricians, and those on the manufacturing line take on part of the debt for pharmacists, physical therapists, financial planners, and engineers.
The latter group earn more now and will earn more in the future. We are benefiting MANY higher-earning professionals by socializing their debt to the working class who chose not to take on debt.
In a very real way, people who chose NOT to get student loans will be FORCED to have student loans if this plan is enacted.
3. It’s unfair and arbitrary.
What about people who carefully planned and denied themselves housing or car upgrades to save for their kids’ college while others spent freely, took on debt, and will now have it forgiven? Do they get rewarded?
What about people who chose trade schools or chose a startup loan to start a business or a loan to buy equipment for their farm?
Heck, what about people CRUSHED by medical debt they incurred because of our idiotic medical system?
Why have we chosen this one type of debt for sympathy and then to transfer that debt onto all of us? It’s unfair, and it’s arbitrary.
4. It will cause inflation and more debt.
Inflation is when there are too many dollars pursuing too few goods. We just intend to take $300 Billion and dump into an economy already suffering with inflation. When those $300 billion translate into car purchases, vacations, new electronics, or general commercial spending, we’ll have continued inflation on cars, fuel, and all manner of merchandise.
The Wharton model says this plan eliminates any possible inflation reduction that was supposedly going to come from the “Inflation Reduction Act.”
We’re also now over 100% debt-to-GDP ratio. We just spent more money than any human ever fathomed could exist on Covid responses. It’s time to stop spending money we don’t have.
5. It ignores the existing solution.
We already have a solution, admittedly imperfect, for the debt problem. We have an Income Based Repayment (IBR) plan where borrowers can pay lower payments over a longer term – ensuring the monthly payment isn’t debilitating.
Part of this plan adjusts the IBR even lower. That’s not a terrible idea. Let’s do that, but not transfer the debts of few into the debts of everyone.
6. It doesn’t address the core problem.
The actual problem we have is a backward and antiquated view of college and college funding. This plan does NOTHING to address that core problem, only ensuring we end up right back here soon.
7. It makes the core problem worse.
Not only does it not address the core problem, it makes it worse. Students and families will now be LESS averse to taking on irrational amounts of debt because they can assume, soon enough, another election will approach and some vote hungry politician will bribe them with this candy.
This incentivizes colleges to continue to jack up tuition and for parents and students to borrow to pay for it.
8. It’s obviously political.
This is obviously vote buying scheme. That’s why it’s coming 9 weeks before an election instead earlier this summer or in the spring. It’s bad policy, using every taxpayer’s money to purchase votes for Leftist candidates.
