While we were busy being horrified by the Harris-Trump race.....
Friday witnessed the launch of another shameless, unethical, unlawful Biden student loan policy. Specifically, loans are forgiven in the presence of “hardship,” which is identified by two provisions. The first cancels debt when the Department of Education predicts that the borrower is at least 80 percent likely to default within the next two years. THE DEPARTMENT OF EDUCATION!!! Is there a worse financial institution on this planet, less to be trusted to assess default risk, than the Department of Education?
The second is a real knee-slapper. Hardship is divined by looking at 17 “non-exclusive factors,” including one factor that the Department itself calls a “catch-all” to “preserve the Department’s flexibility” to forgive debt. This is a joke. A blatant, corrupt, wrongful joke.
The second is a real knee-slapper. Hardship is divined by looking at 17 “non-exclusive factors,” including one factor that the Department itself calls a “catch-all” to “preserve the Department’s flexibility” to forgive debt. This is a joke. A blatant, corrupt, wrongful joke.
- Douglas Holtz-Eakin, economist
OK... so the more likely the student is to default, the more likely they are to get free money! YAY! Great incentive for everyone to select a major wisely and become a productive self-supporting citizen.
We recently estimated the President’s new student debt cancellation plan would cost between $250 billion and $750 billion over a decade
https://www.crfb.org/blogs/how-much-would-student-loan-hardship-provision-cost?utm_source=American+Action+Forum+Emails&utm_campaign=34696190cb-EMAIL_CAMPAIGN_2020_11_19_05_40_COPY_01&utm_medium=email&utm_term=0_64783a8335-34696190cb-471107068
So, what's $750 billion among friends???? Compared to our ~$36 Trillion in debt it's just chump change I guess.
56-60, F
