The Biden administration attempted to remedy the crashing and burning economy last week…by spending more money. The President said qualifying individuals (mostly recent graduates who earn $125K or less) would receive $10K off their student debt. Other folks, like the working class and those who paid their loans, were none too happy about it as this snarky ad shows.
David Harsanyi at The Federalist points out that the euphemisms such as debt “forgiveness” or “cancellation” are not accurate, since the money is already spent. If the government is the lender, then theoretically they can cancel the debt if they feel like it. But it is hard to see how this is not a redistribution of other people’s money. More cynically, giving out money in a midterm year sounds like a political campaign.
Tech entrepreneur Mike Solana suggests there are better ways to tackle the problem of student debt such as making repayments tax deductible. And that’s without even addressing the problem of wealthy colleges overcharging for vanity degrees. Some progressives say $10k is not enough, and given that this administration has been giving out money left, right, and center, it’s hard to see why the President didn’t just wipe out the whole lot.
While Scripture has a lot to say about debt and showing compassion to your debtors, the bigger injustice in this situation is the whole education-to-employment pipeline – it needs more than just a paint job. It is a pay-to-play system that encourages young people to take on massive debt for studies that rarely help them grow as free-thinking citizens. It needs a complete overhaul.
As it stands, The Hill reported that the decision is in “tricky legal territory” and will face challenges.