(RepublicanNews.org) – President Joe Biden has launched numerous attempts to “forgive” billions of dollars in student loans, and many of them have not survived court challenges. His latest effort, the Saving on Valuable Education (SAVE) plan, could cost up to $230 billion in taxpayer money, according to a report from the Congressional Budget Office (CBO).
The total student loan debt held by Americans is $1.7 trillion. Critics of the administration’s efforts to unburden individuals of their debt point out that there is no such thing as “forgiving” a student loan. Instead, it merely transfers that bill from the person who took out the loan to every other American taxpayer. This makes all U.S. taxpayers responsible for paying off the debt choices of individuals who got in over their heads.
What’s more, some commentators say this is really a ploy to give the federal government even more control over the higher education system.
Biden’s original plan was scotched by the Supreme Court. The SAVE plan, hatched along with Secretary of Education Miguel Cardona, is Biden’s latest attempt to accomplish the same goal. The plan would cut monthly payments to nothing for borrowers who make less than $32,800 (singles), or $67,500 (families of four). The majority of the rest of borrowers would probably see their monthly bills cut in half, with most of this benefit going to those who only have loans for undergraduate college.
In addition, anyone who borrowed $12,000 or less would get their entire balance forgiven in ten years, compared to the 20 or 25 years that other loan forgiveness plans use.
Any borrower who is in default (that is, who stopped paying their loans) would not be eligible for help under SAVE. But there is a Department of Education program called “Fresh Start” that will “fix” that. The program would place any loans that are delinquent for at least 75 days automatically into the SAVE plan.
The end goal is to funnel all loan repayment programs into one place, SAVE. Whether the courts and the American people will tolerate another move to force the entire population to pay off the private debts of others remains to be seen.
Copyright 2024, RepublicanNews.org
