President Joe Biden is engaging in “politics” by attempting to prolong the student loan moratorium through November 2024 in the wake of his most recent Supreme Court defeat, according to Heritage Foundation economist EJ Antoni, who was quoted by Breitbart News Daily.
After the Supreme Court rejected President Joe Biden’s debt transfer proposal, stopping a $430 billion write-off that had been criticized as an electoral gimmick, Antoni talked with Matthew Boyle, host of the Breitbart News Daily.
In an opinion piece, Antoni stated:
“The Supreme Court’s decision to overturn President Joe Biden’s unlawful student debt bailout is good news for taxpaying citizens. The court protected America from not just a substantial charge on the government balance sheet right now but also from excessive borrowing and future increases in tuition expenses.”
“Biden’s idea for student loan amnesty was an abuse of the HEROES Act of 2003 and would have cost taxpayers up to $20,000 for each borrower. Even debtors with relatively high earnings were eligible for the freebie; families making $250,000 yearly qualified for up to $40,000 in ‘forgiveness’—an euphemism for a public bailout—and were thus granted a break.”
“The precise cost of such a rescue would have exceeded the $380 billion White House estimate, according to some estimates. Because a taxpayer-funded rescue of student loan debt would have generated incentives that in turn changed people’s behavior, there is a discrepancy between these estimations.”
Boyle and Antoni talked about how the student loan “forgiveness” program, which is really a debt transfer or taxpayer bailout, according to Antoni, will only drive up college tuition costs. However, Antoni cautioned that the Biden administration will use additional tactics to prolong the student loan pause, which is soon to come to an end.
He declared, “Under Joe Biden, many students have never made a single payment on their student loans since the moratorium has been in effect the entire time. Additionally, the Biden administration has now introduced an on-ramp program, which is as misleadingly named as the Inflation Reduction Act. Essentially, under this program, even if an account defaults starting in October when payments are supposed to resume, the Dept. of Education won’t classify the account as defaulting for a whole year.”
“In other words, at what point would they become insolvent? November 2024. In other words, you would essentially have that payment suspension continue through the election, after which it would suddenly resume. I’m sorry, but the cynic in me thinks politics are at work here,” he continued.
Comments are closed.