August 30, 2021
https://bit.ly/3gNi4vt
Just in time for the back-to-school season, the Biden administration announced a new student loan cancellation policy that is ill-conceived and purposefully designed to circumvent the increasing majority opposition to full student loan forgiveness.
Biden’s education bailout comes at a time when a growing segment of the public is questioning the value of higher education, and it’s no wonder. The excesses of skyrocketing tuition, coupled with a myriad of degrees that have little value in the workforce, are exhausting family finances and leading many students to fumble their futures. College graduates now suffer a 43% underemployment rate while carrying, on average, $55,000 of student loan debt.
This problem needs to be fixed, not rewarded through a massive government bailout. Just as a coalition of centrist Democrats and moderate Republicans are collaborating to rein in the high levels of unchecked spending, Biden’s announcement disregards taxpayer distaste for massive government giveaways, especially hefty wealth transfers to the affluent.
Not to be obstructed, the administration found a back door with the Education Department’s announcement that it will operate under the assumption that borrowers were defrauded when determining if they should be granted full student loan relief. The announcement changes the current policy known as borrower defense to loan repayment (BDR) or “borrower defense.” It is a type of debt appeal offered to recipients of direct federal student loans who attended a school they believe misled them, engaged in other misconduct, or violated state law.
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