Loan Forgiveness With Other People's Money
There was a time in America, more than a decade ago, when horror stories of six-figure student debt racked up by graduates with faint prospects and no idea how they'd repay the money led to a rethinking about the cost of higher education.
The average student debt at the time was $23,000.
President Barack Obama launched a program, "Know Before You Owe" to educate teens and parents about student debt.
In a bid to make college more "affordable," Obama also signed a bill that reduced student loan repayments to 10% of borrowers' income and forgave remaining balances after 20 years of payments -- 10 years for those who qualify for the Public Service Loan Forgiveness Program.
But of course, that is not enough. It never is.
Now President Joe Biden plans to shift more of the payment burden from borrowers who took out student loans of their own free will and onto taxpayers who have no choice.
On Jan. 1, the Biden administration will cancel $10,000 of a student's debt -- $20,000 for those who received Pell Grants.
Most taxpayers didn't graduate college, but in Joe Biden's America, they'll get to pay for it.
The Congressional Budget Office estimated the cost of the loan forgiveness plan to be $400 billion, but the Committee for a Responsible Federal Budget sees a cost of "roughly $500 billion" over the next 10 years.
Press Secretary Karine Jean-Pierre told reporters that critics oppose the Biden package "because they know it will provide much needed" relief for "working families."