
<p class="wp-block-paragraph">I recently wrote a commentary critical of President Biden’s school loan forgiveness plan. ; New reports reveal it is worse than I even explained. ; ;</p>



<p class="wp-block-paragraph">Biden includes loans from parents through some “parents-plus” deal. ; As I see it, the parents can have their loans reduced by $20,000. ; But here is the catch. ; The determination of eligibility is based on THE STUDENT’S INCOME.</p>



<p class="wp-block-paragraph">In case you have not connected the dots, that would mean parents with huge incomes can get the loan reduced based on the income of their kid – who could be a couch potato living off mommy and daddy (as was John Fetterman, the Democrat gubernatorial candidate in Pennsylvania until he was elected Lt. Governor. ; Reports say he got an allowance for more than $50,000 per year from his folks. But I digress).</p>



<p class="wp-block-paragraph">I previously covered the more than three hundred million Americans who will NOT be benefiting – but who will be footing the bill for the less than ten percent of the population who will supposedly be benefiting.</p>



<p class="wp-block-paragraph">So, why did I say “supposedly” be benefiting? ; Weeell … the benefit may not be all that Biden and the Democrats claim.</p>



<p class="wp-block-paragraph">Biden – with his habit of hyper hyperbole (I did not want to say “bullshit”) – says that because of his canceling a portion of the student loan debt, folks will have money to do other things like buying a home. ; (Yep! ; That is what he said.)</p>



<p class="wp-block-paragraph">Let us say you are making less that $125,000 per year – and you have a student loan obligation of $100,000 that you are paying off at the five percent interest rate. ; You have 20 years to pay it off. ; That gives you a payment of approximately $791 per month.</p>



<p class="wp-block-paragraph">After Uncle Joe &#8212; I mean Uncle Sam – reduces your loan to $90,000, your monthly payment drops to $718 per month – or saving of a whopping $73 per month. ; That would not cover a mortgage on a birdhouse.</p>



<p class="wp-block-paragraph">Even if Biden were to give them the entire amount up front, a low-income renting individual would not be able to afford a house. ; No doubt it will be a nice one-time piece of change to pay off a few credit card bills, but the economic benefit will be fleeting.  ; A year from now, the lives of the recipients will not have changed because of the money.</p>



<p class="wp-block-paragraph">This is a one-time election-year goodie for a few folks but does nothing to address the ongoing problem of robber baron tuition increases. ; As one commentator put it, Biden is using a small bucket to bail out a boat without addressing the gaping hole in the hull.</p>



<p class="wp-block-paragraph">And then there is the cost of the program – and its impact on inflation – when asked about the cost, Secretary of Education Miguel Cardona said … he did not know. ; They have not figured it out yet.</p>



<p class="wp-block-paragraph">Cardona said the income from the rest of the student loan income would cover the costs. ; That is just stupid and dishonest. ; He might as well have said that Social Security income would cover the cost. ; No. ; The cost is the cost – and there is no counterbalancing income to offset it. ; That is why economists call Biden’s action inflationary. ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ;</p>



<p class="wp-block-paragraph">It is not just the Republicans complaining. ; Tim Ryan, the Democrat Senate candidate in Ohio, has come out against the plan. ; President Obama’s economic advisor Jason Furman called Biden’s action both “reckless” and “inflationary.” ;</p>



<p class="wp-block-paragraph">Furman tweeted, “Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless. And doing it while going well beyond one campaign promise ($10K of student loan relief) and breaking another (all proposals paid for) is even worse.”</p>



<p class="wp-block-paragraph">Biden and left-wing Democrats are selling a lot of sizzle but are not producing any bacon for anyone.</p>



<p class="wp-block-paragraph">So, there ‘tis.</p>



<p class="wp-block-paragraph"><strong>Author Note: In the commentary, it was noted that Secretary of Education Cardona did not know the cost of President Biden’s student loan write-off program. ; We now have a figure. ; It is estimated to cost $500 billion dollars – half a trillion. ; That makes it a significant inflation driver. ; In addition to the burden of increasing inflation, taxpayers will be picking up the tab for years to come – including those who paid off their student loans and those who never had any – and those who take out student loans in the future will be paying off theirs and those who got Biden’s election year gift.</strong></p>

The more you learn about school loan forgiveness… the worse it gets
