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Now that the election is over … Biden not so sure about student loans

Now that the election is over … Biden not so sure about student loans

President Biden made a lot of popular promises heading into the 2022 Midterm Elections.  Now that it is over and time to make good on his promises, Biden is laying back – suggesting that the voters need not look for them to be kept.

You may recall that prior to the election, Biden was promising to write off a billion dollars in student loans – giving the impression that those holding such loans would be debt free.  When that promise proved to be both outrageous and impossible without causing great damage to the economy, Biden did modify that promise by admitting that his plan would not fully eliminate a person’s debt – and would not cover all borrowers.

Despite serious concerns about the constitutionality of Biden’s proposal, he still went ahead and ordered his Department of Education to start approving applications – as if it was the real deal.  Millions of Americans applied and were accepted into the non-existing program…

As expected, the Federal Courts said, “Not so fast, Mr. President” – and they stopped the process until the Supreme Court could decide on whether Biden had the power to write off the debt or if he was abusing his presidential powers.  

Personally, I think that the High Court will declare that only Congress – which has authority over the budget – has the power to write off financial obligations to the government.  I mean really.  What if a President issued an Executive Order that the holders of government bonds (the National Debt) did not have to be paid?  Or if a President declared that the residents of New York did not have to pay federal income tax.  Those are different issues, but the principle is the same.  

The Student Loan Program was created and funded by Congress. The President (hopefully) does not have the power to arbitrarily adjust the income and obligations of the government in this or any other program or contractual agreement.  

But we do not have to wait for the Supreme Court to pass judgment on the matter.  Biden is already ‘fessing up that his bold proposal is not what was claimed at the onset.  He is already hinting that his grandiose scheme is not likely to be fully implemented – and maybe not at all.

To compensate for the potential failure of his student loan forgiveness programs, Biden has once again ordered a moratorium on the monthly payments.  This may sound good – even appealing – to those holding student loans.  But it is not forgiveness.  They will have to pay the full amount and interest according to the agreement.  

Before they get too giddy about a few months without writing checks to Uncle Sam, they might want to consider that when payments resume, they will be in inflationary dollars.

I am afraid that Biden was bs-ing when he made that promise to millions of student loan holders.  I think he knew that his plan would never pass muster at the Supreme Court … that it would increase inflation … and would also anger a lot of folks who have already paid off their — or their kids’ — student loans.

So, there ‘tis.

About The Author

Larry Horist

So,there‘tis… The opinions, perspectives and analyses of Larry Horist Larry Horist is a businessman, conservative writer and political strategist with an extensive background in economics and public policy. Clients of his consulting firm have included such conservative icons as Steve Forbes and Milton Friedman. He has served as a consultant to the Nixon White House and travelled the country as a spokesman for President Reagan’s economic reforms. He has testified as an expert witness before numerous legislative bodies, including the U. S. Congress. Horist has lectured and taught courses at numerous colleges and universities, including Harvard, Northwestern, DePaul universities, Hope College and his alma mater, Knox College. He has been a guest on hundreds of public affairs talk shows, and hosted his own program, “Chicago In Sight,” on WIND radio. Horist was a one-time candidate for mayor of Chicago and served as Executive Director of the City Club of Chicago, where he led a successful two-year campaign to save the historic Chicago Theatre from the wrecking ball. An award-winning debater, his insightful and sometimes controversial commentaries appear frequently on the editorial pages of newspapers across the nation. He is praised by readers for his style, substance and sense of humor. According to one reader, Horist is the “new Charles Krauthammer.” He is actively semi-retired in Boca Raton, Florida where he devotes his time to writing. So, there ‘tis is Horist’s signature sign off.


  1. Tom

    I do not think Biden cares about anything you said. The student loan program promises had one motivation, to garner the young people’s vote. And it worked!! Young people broke for democrats because all of those loan applications went to the polls to try to make sure they got Biden Democrats in. He knew all along his proposal was dicey at best – but he did it to get the votes. Pure and simple buying votes, nothing new on that horizon. Young people today feel entitled so he threw an entitlement at them, and it worked – but now it is backfiring and he is being shown to be a liar on this issue. I am sure he will use it in 2024 that the GOP was the reason it failed and that Dems will make it work if they are elected. GOP should be hitting this hard that this was his failure and his over reach without authority, and then propose re-engineering that whole system to be fair and go after the institutions that keep charging high prices every year raking in billions. They are the villians and are getting away with it! I am amazed that he can even hold off payments still with no pandemic and many jobs – yesterday jobs report was good. Average of 235,000 jobs created per month. If he can’t or doesn’t have the power and authority to cancel debt, it does not make sense to me how he has the power and authority to postpone payment of debt. Its ludicrous! As an Independent/unaffiliated voter who paid for all three of my degrees, I (and most of us) find this program outrageous and disgusting. Frank thinks Independents are wet noodles that do not take a stand, but as can be seen, I am standing firmly on this one!

  2. Tom

    By the way, the loan applications were Biden’s way of counting the votes he would get. And he did not even by the votes, all he had to do was dangle the carrot!!! I feel this was a very dishonest thing the Democrats did and it angers me because it did impact the election. It was nothing more than a slight of hand, a trickster’s play, a scam from one of the best scam artists around.

    • frank stetson

      I am not sure why you think I think that about Independents, mostly I think they are Dem’s or Repub’s with a cooler sounding name. But that’s a statistical average and you are an individual and a free man. Of course you may stray from average.

      On this one, sure it’s political. Just like Trump’s unnecessary December 2020 vote-for-me stimulus that caused our inflation starting at the end of 2021 —- wink, wink, nudge, nudge.

      And sure, he does not have to do squat now at the risk of 2024.

      So, he will plow ahead and Republicans, and maybe a few Dems too, will push back. And the goal will be messages and messaging for 2024. Who can create the best message and who can market it the best.

      On the right we may hear: too expensive, wasteful, and not necessary —- why not, no Republicans can take advantage, not enough degrees amongst them — wink wink nudge nudge

      On the left we may hear: help them, education good for national defense, and needed —– why not, it’s all they got.

      FYI —- I am not for the college loan program as is; it’s like welfare in the 70’s —- good idea, got bad with time, and no strings (try-for-work, can have forever) making it get out of hand. I am for low cost college loans, just make it work.

      I am also not for forgiveness. I like the idea of delays, extensions, etc, but not for letting people off the hook because they could not estimate the outcome. We don’t forgive people who take loans they can’t repay.

      Just saying.

      • Tom

        I totally agree with you, Trump started the money printers working and inflation, Biden put it on steroids and is continuing to do so. Both are nuts, only Biden is playing with a few less marbles these days. And the same with that rental fees executive order. I am much like you, firm on requiring people to be responsible for their planning and decision making – and that includes paying for it. Yes the messaging will be very interesting. GOP needs to be more like Dems and avoid the unpleasant messages and get better (maybe take lessons from Biden, Bernie who is an independent, Dizzy Lizzy Poco-Warren from MA, and others) on how to blow smoke up people’s butts and smile while your doing it. GOP needs to stop being so darn corporate dollars and cents about everything and get off of all the negative messages. Life is much more than a balance sheet. I have found from some of my wealthy friends that when they say “we can’t afford it” what they are really saying is that it will hurt their personal long term savings goals. I actually had this conversation with several of them. Having been a DoD contractor/engineer, I think the biggest welfare program we have is a corporate welfare program called the defense budget. And it will soon be $1T per year in about five years from now.

        I make it a habit (as a mathematician) to never argue with statistics unless I have better statistics. Can you post a link to one of those surveys, or tell me where I can find one recent survey? I would be very interested in reading the survey. At best, I am a centrist and a hybrid blend of the best of both parties that I call a DemoGop. Yes you may be right that I am not your average garden variety Independent. But what you have seen in 2022 and it will occur again in 2024 is Independents breaking for one party or the other with absolutely no loyalty to either party, just fealty to the issues and the American people – what does the greatest good for the greatest number of people without harming the country.

  3. Rick

    Seems like it works for the demonocrats. Promise free stuff and the gullible liberals will fall for it every single time. Even though many times the liberals never end up getting the free stuff because it was all a lie in the first place. Those same liberals will be tricked over and over again. The liberal cannot resist the allure of getting something for free. The demonocrat politicians know that about the liberals so they have been using that same trickery over then since the beginning of time to get and keep power to rule and control humans.

    • Sam

      Just more Biden lies

      • frank stetson

        what lie? he offered, courts said no, he is still trying.

        where’s that trump health care? i know, in the rearview as we take it up the……..

        at least biden got us a few bene’s there.

  4. AC

    Back in the day I payed my tuition bill for BA in ‘69-73 working 3rd shift plating furniture parts. An unhealthy gig in chemical fumes that paid by the piece per hour. In the middle ‘80’s night classes at a local University’s masters program was paid for on my dime..
    Years pass and tuition increases exponentially and my offspring go off to private college in the early 2000’s. In their planning for college we as a family promised financial assistance and managed with some borrowing to make good on promises made with our pitching in a third. All additional was on them. At this time they each have paid all loans in full and we are debt free.
    None of us expected loan forgiveness from government loan agreements. But, debt amounts for tuition incurred 20 years back is less by more than half.
    My degreed adult children feel the tuition debt pain today’s students’ have. Although, they diligently budgeted and worked at erasing their debt. Not one disagrees with tuition debt forgiveness as unjust. Students today should expect to take responsibility for most tuition payment, not in total. Any compensation students would receive from government financial assistance is society’s investment in its future. A better educated population benefits the whole of society. In that good education at every level is society’s responsibility to its youth equally.
    Higher education at community college and university level should be available on individual scholastic merit more than financial ability. Society, then must ensure all students their equal opportunity in educational achievement meriting further education.
    Students, then, receive education allowing them readiness of learning. So, when they reach that time and place where work and college compete for talent by educational merit. Society will have done its job well when the youth had while growing up equal educational opportunities no matter their economic status.
    Discrimination relative to race, gender identity, religious belief, and any other basis of choice is the most ugly when that thinking biases educational offerings. Neglect in education from Pre-K thru High School has ramification on scholastic achievement sufficient for making a contribution in society. So, let’s talk HS completion numbers. Lowest to highest in the nation’s High Schools. Republican dominated local schools, Democratic dominated local educational institutions, and independent politically unaffiliated person in either area all compete for the education dollars.
    There should not be losers and winners in educational quality nor college tuition affordability.
    Some may cry “socialism, Marxist Communism, or an epithet deemed worthy What ever the excuse neglect on the scale seen in education gone not provided to the least economically benefited is stingy capitalism, scapegoating, and irresponsible tax management.
    Not Biden’s fault. He wanted to give relief to those who represent this country’s future. Why beat him up out of spite for some promises not kept immediately, but should be honored. The number of votes gained were not enough anyway.
    If the point for more Biden harassment piled on is drawing attention, then consider the diminishing returns factor with more of same. More blasts have negligible effect in the PBP market. The sides are made up with no change of positions in sight.
    Just saying, more vitriol commentary may keep a few energized in the one hand.
    A more apt motivator is catharsis. Relief for the moment when bad perceptions of governance with the other philosophy in power.
    Patience, man, what else is there. I’ve been waiting patiently since before 2015. Think about it. What will your age be in 2024? So, years of age, does one or two make a difference to you.

    • Sam

      The government doesn’t owe us a living or tuition. As for education, the mechanical trades need good people. Most colleges indoctrinate more than educate

      • frank stetson

        fyi; i believe in a hand up, not a hand out. low cost targeted loans = hand up; loan forgiveness = hand out.

    • Joseph S. Bruder

      I also attended college in the late 70’s and early 80’s. Tuition was $30 per semester hour for undergrad and $300 per hour for graduate school. Minimum wage was about $2 per hour, which would have paid for a class in 15 hours. I started working on the farm for $50 a month when I was in high school (which increased to $100 a month around my senior year), worked as an electrician’s helper during high school, and worked in between semesters. I lived at home and commuted 20 miles to the University. I got a Bachelor’s and Master’s degree in electrical engineering, and I paid for all of my tuition while I was going to school.

      Students just can’t do that now. My wife is in a community college, and just a prerequisite course costs about $800. She hasn’t even started regular classes, and the school only gives 2-year degrees. Minimum wage is about $7 per hour, and even with prevailing wage in this area being about $15-20, it takes 1-2 weeks to pay for a single class. And this is just a pre-requisite class for an associates-degree program, and not living on campus. Universities with full degrees cost even more, double or triple, and not everyone has the ability to live at home and commute. Right now, it takes 2-year’s worth of salary at normal wages to pay for a year of college if you want to start with money in hand. how many people can work for 8 years and then start college at age 26 or so? Half of those years should be prime post-college earning years. Students who take out loans spend the first 10 years working to pay off those loans instead of building equity in a house or saving for retirement.

      The real problem is that schools and universities should be subsidized. We already do that for good reasons with grade school and high school, and the complexity of the world has grown to the point that we must further educate our citizens. The health of our economy, all of the growth of the country, all of the innovation and progress that we make, is all dependent on the education of our citizens. Companies can’t suvive with untrained employees. We should not be putting people in debt for the privilege of increasing the GDP of the country to benefit the wealthy.

      As far as Biden’s loan forgiveness program is concerned, it’s the right thing to do. I reject the notion that it’s a campaign ploy, or that he’s buying votes, or that he’s giving up now that the elections are over. Republicans have come out in lockstep against it because it would make Dems look good by doing something positive for the country. Biden had a razor-thin majority in Congress, and now a split House/Senate majority. He’s been fighting court battles brought by conservative groups. When Biden says it may not happen, it’s not for lack of trying, and he hasn’t quit yet. If it doesn’t happen, blame the Republicans who don’t see a value in educating citizens. They like their sheep stupid and easily manipulated.

  5. Joseph S. Bruder

    A little off topic – this is from the guy you wanted to elect as President – from Trump via Truth Social:

    So, with the revelation of MASSIVE & WIDESPREAD FRAUD & DECEPTION in working closely with Big Tech Companies, the DNC, & the Democrat Party, do you throw the Presidential Election Results of 2020 OUT and declare the RIGHTFUL WINNER, or do you have a NEW ELECTION? A Massive Fraud of this type and magnitude allows for the termination of all rules, regulations, and articles, even those found in the Constitution. Our great “Founders” did not want, and would not condone, False & Fraudulent Elections! 

    Are you still wishing you had dictator-for-life back in the White House? It makes a campaign promise that can’t be kept because of opposition from Republicans look a little quaint, doesn’t it?

    • Joe Gilbertson

      So you believe there was no fraud? Then you haven’t been paying attention. Florida just busted a democrat led ballot harvesting operation that had been going on for ‘decades.’ And I can personally attest to the liberal bias in Google, Facebook and Amazon. Try to do business in the conservative space with any of them, you’ll find out.

      ‘Dictator for life’? Aren’t you one of the ones who said that Trump would not leave the White House in 2020? And yet….

      • Joseph S. Bruder

        Not only are you not paying attention, you’ve got a level-10 Trump-cult blindspot. There were 60-some lawsuits by Trump, all dismissed for lack or evidence. NOT EVEN ONE showed any basis in reality. Others have copied Trump and alleged fraud, and all kicked out because there is absolutely no evidence. The clearest conclusion is that Republicans are losing because they have no platforms and no ideas to help the American public. Republicans are showing themselves as a bunch of spoiled-sports crying foul with no evidence just because they lost.

        And what has happened to that “ballot harvesting operation” in Florida? Alleged by one woman, with no evidence, and taken up by Trump wannabe, DeSantis. It got Desantis his extra 5 minutes of attention, and then it died a quiet death. And it will be quoted by idiots like you in the far-right press for years to come, like “Hunter Biden’s laptop” and “what about Hillary’s emails?” It’s another nothingburger that will go nowhere because there is nothing behind it.

        I’m sure you can personally attest to liberal bias on FB and Google – you see liberal bias everywhere except Fox and Newsmax, and you’re probably not even sure about Fox anymore… Amazon? What, are they not selling enough guns and Nazi memorabilia?

        Trump stayed in the White House until the minute Biden was inaugurated. He only left to avoid being arrested and carried out. He created fake electors, fomented an insurrection, and put people and plans in place to have himself declared the winner of the election. It was nothing short of treason, and hopefully he will still pay for that. He claimed and is still claiming that he’s still President, and is still demanding to be reinstalled. Is that what you call “leaving the White House in 2020”. Trump is making a mockery of the peaceful transfer of power that the US enjoyed for 250 years or so.

        But, as usual, you’re missing the whole fucking point. Trump has called for the “TERMINATION OF ALL RULES, REGULATION, AND ARTICLES, EVEN THOSE FOUND IN THE CONSTITUTION.” This is from a former President who swore to uphold the Constitution. He has alleged massive voting fraud, without any proof, and wants to use that to destroy our rules and laws and appoint himself King of the country. And he misquotes the Founding Fathers and their words in the Declaration of Independence and the Constitution, which was all about breaking from the monarchy and limiting the power of the Executive by distributing the duties among several co-equal branches of government and limiting terms by elections. The people overwhelmingly chose to replace Trump, and there has been no evidence to say otherwise.

        So, what the hell kind of conservative are you? You think the free market will cure all ills, but without laws and a superceding set of guidelines, we just become another Nazi Germany, where the big businesses pay thugs with guns to keep everybody in line, and the Dear Leader can declare war and take any country that looks weak. Lock up anyone who is a minority or speaks with an accent. Let Poopin Putin keep grabbing up countries and making himself richer? Let dictators send Muslims to re-education camps? We’ve fought lots of wars to keep things like that from happening.

        You have lost all perspective on Trump and the Republican Party.

        • Frank stetson

          Brutal, Bruder..

          Hard to understand how The Big Lie survives. Much less pick up steam with the Harvesting PR stunt. There may be fire there, but so far smoke from smoldering only from a guy who bellyflopped his first felon voter fraud sting.

          Maybe get some traction with Hunter, but probably tax and not filing foreign agent status, will never tag Joe.

          Probably better luck with gain-of-function status and US funding for Wuhan man-made covid disaster, that one has potential.

          But The Big Lie that sparked a riot and an insurrection looks pretty rock solid at this point and Trump seems to be writing his own call for treason…….again??? Guy is unhinged and deranged. Time to fish is over, cut bait!

          The faster they do it and back Desantimonious, the worse I will feel ;-). When the disney kids say: “we live DeSatan,” watch out Bruder 😉

  6. Bibfy

    Oh come on man. Where’s the famous video from the harvesting? Nada. The first fl fraud sting is being tossed. The harvesting is an investigation based on a democrat who monitors for ten years, loses her election, testifies and has tape. Why did she wait ten years? Where’s the smoking gun, where’s the tape?

    Your huge fraud is news-at-eleven and under investigation. No arrests, no indictments, no grand jury, just a referral is your big enchilada.

    And you already heard that before and yet ran with it afain with no detail.

    Bad form.

    • Sam

      Just stay in NJ and stfu

  7. Bibfy