Federally Flunking: “Forgiving” Student Loan Debt

The Biden administration’s latest effort to keep perhaps a segment of politically wandering voters is to keep student loan debtors within their Progressive compound by potentially “forgiving” those billions of dollars in federally-backed school loans.  Vote for us because we just made your life somewhat less intolerable (kindly forget rising inflation).  Recall that nobody twisted any arms to get students to accept those loans.  That was free-will choice, realizing however that in many cases, those loans were the only way some students could afford to attend college.  Overlooking the fact that, perhaps too often, the college of choice was a super prestige and pricey one, while then choosing a major course of study guaranteed to produce an underwhelming financial return in that ever-present and often-stark real world.

There are many issues nagging this proposed plan to forgive student loan debt.  And beyond the “proposed” stage, as you may well already know, the administration has gone ahead and “forgiven” the loans-outstanding that are held by students who attended the for-profit (since out-of-business) Corinthian College chain of schools.  That forgiveness, by the way, totaled $5.8-billion in now-cancelled student loans.

And let’s deal with this huge negative right now.  Forgiving these billions of dollars in student loans does get those thousands of students out from under that debt obligation, but that obligation doesn’t just go away.  No, it now flows from those students to United States taxpayers.  Yes, Mr. & Mrs. America, that obligation now flows instantly to we taxpayers to pay off.

And remember that there is still the potential for billions of dollars more in student forgiveness, if the administration goes through with its apparent intent to wipe out some, or all, current student loan debt in the country.  And it doesn’t just vanish when lifted off student shoulders, it comes slamming down on ours.  And in the process, it is also a direct shot at three groups unaffected by such student loans until body slammed by “forgiveness.”  Those groups include: taxpayers who never attended college; taxpayers who attended & graduated with no loans (sensible college choice + working while there + and, perhaps, thank you, Mom & Dad!); and finally, those most likely to be super irritated are those who had college loans, worked hard, and have completely paid them off.  That latter group gets no consideration whatsoever under the federal student loan “forgiveness” plan.  Just the personal satisfaction (and America’s thanks) for satisfying one’s federal loan obligation.

On the subject of bribing student loan holders/voters with loan “forgiveness” in an election year, the Washington Post editorial board, surprisingly, referred to the loan cancelation plan as “an expensive and inequitable election-year stunt.” It’s estimated that total “forgiveness” could well exceed $230-billion, with as much as 25% of the benefit going to the Top 20% of the nation’s income scale!  “Expensive” in terms of added cost to taxpayers, and its impact on already out-of-control inflation, plus loss of revenue for the federal treasury.  “Inequitable” in that those who never attended college, those who worked to fully pay-off their debt, and everyone else are now stuck with the enormous debt of others.

On the subject of “bribing” some voters, Bernard Goldberg wrote: “While both parties are guilty of doing this, Democrats have a more accomplished record for this kind of thing.  Give out “free” money to voters and they’ll thank you with their support, is how the thinking goes.  But let’s not be too harsh on Democrats.  (After all) enticing voters with “free’ stuff is part of their playbook, their political DNA.” It should be noted here that students with college loans have been excused by this administration from paying out-standing loan interest since March 2020. It even appears that perhaps not even making consistent payments on the loan principal may not be causing a federal stir at the present time.  Which all raises the question: “Does modern American society reward those who ignore their legal obligations?”  How about real estate and vehicle loans?  Any “forgiveness” there?  Of course not.  But then, why do Progressive Socialists stop at student loans?  To heck with the nation’s fragile economy and mountain-high public debt, let’s accelerate federal power, control, and bankruptcy by “forgiving” all personal loans.  Welcomer to Socialist nirvana.

One additional downside of wiping out past student loans (oh, and what about any eligibility for current and future student loans?), discussed by only one writer discovered thus far, is the impact on military security, which is largely resulting from, and sustained by, successful recruiting.  Since post-World War II, the G.I. Bill has made college possible for so many veterans and continues to be a key recruiting benefit for young men and women desiring to serve today.  “Mass student loan “forgiveness” is the wrong move at the wrong time, and it could have lasting negative impacts on national security.”  Our military branches are “fighting” right now in, as they term it, a “war on talent.” Competing for young recruits versus those deciding on college attendance, or who are being lured by companies, more of whom now, than ever before, are offering college tuition incentives, forced to so by either a lack of available employees and/or by young people deciding not to enlist, or even work at all, at the present time.  To counter the college tuition offers from corporate America, the military branches, particular the Army and Navy, have added incentive bonuses up to $50,000 (for selected military service jobs).  The question becomes why would young people consider the military if they think that their future college loans could be forgiven (or perhaps even federally-provided free college to begin with!!) without the “extra effort” of military service?  As writer Paul Lawrence concludes: “America’s military might is not merely a matter of national pride and patriotism.  It is a necessity on an increasingly hostile global stage.”  Hostile to include currently: Russia, China, North Korea, and Iran!!

Besides expensive and inequitable, there is also the question raised as to the legality of the President, on his own, simple nullifying all current student loan debt.  The feeling, expressed by some, is that such an action would not pass muster in a Court test.  Perhaps the very best thing, and the safest-for-America, that the President could do right now, among immediately possible and helpful nullifications, would be to ‘nullify’ all future illegal migrant incursions along our southern border!  Saves a ton of money and would satisfy every realistic, patriotic American, excluding all those mind-numbed wokies now living in the Land of OZ.

FOOTNOTE:  “As of the first quarter of 2022, Americans owed $1.75-TRILLION in student loans”!  dailywire.com, Ben Zeisloft, 6-23-22).

(Corinthian College federal loan forgiveness via foxnews.com, BradFord Betz, 6-1-22; Election year stunt quote & benefits prediction via foxnews.com, Hanna Panreck, 6-1-22; Goldberg quote via breitbart.com, Wendell Husebo, 6-2-22; Does American society reward quote via foxbusiness.com, Richard Vedder, 6-17-22).