{"id":1805395,"date":"2023-01-14T06:05:32","date_gmt":"2023-01-14T11:05:32","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1805395"},"modified":"2023-01-14T06:08:22","modified_gmt":"2023-01-14T11:08:22","slug":"bidens-backdoor-student-debt-bailout-is-a-disaster","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-backdoor-student-debt-bailout-is-a-disaster\/","title":{"rendered":"Biden&#8217;s Backdoor Student-Debt Bailout Is a Disaster"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbidens-backdoor-student-debt-bailout-is-a-disaster%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1805395&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><br \/>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>What\u2019s a president to do when <a href=\"https:\/\/nypost.com\/2022\/11\/17\/biden-student-loan-debt-cancellation-plan-heading-to-supreme-court\/\">Courts continue to block<\/a> His plans to be flagrantly unconstitutional. It is possible to quietly backdoor this same agenda via another channel.<\/p>\n<p>At least, that\u2019s the approach President Joe Biden is taking with student loans. His plan is to \u201ccancel\u201d Transfer to taxpayers: Graduate student debt up to $20,000 is seized in court <a href=\"https:\/\/nypost.com\/2022\/09\/27\/bidens-420b-student-loan-boondoggle-is-blatantly-illegal-but-progressives-dont-care\/\">He clearly outstrips his constitutional authority<\/a> To do so, Congress must not pass legislation. Therefore, his Department of Education is just <a href=\"https:\/\/www.ed.gov\/news\/press-releases\/new-proposed-regulations-would-transform-income-driven-repayment-cutting-undergraduate-loan-payments-half-and-preventing-unpaid-interest-accumulation\" target=\"_blank\" rel=\"noreferrer noopener\">An income-driven repayment plan was announced<\/a> This would be a great way to save money. \u201ccancel\u201d Student debt at taxpayer expense &#8211; huge amounts <em>Another <\/em>mechanism.<\/p>\n<p>An income-driven repayment system works by you paying back only what you can, based on your income, and then the rest is forgiven. Revised Pay As You Make is a much more limited program and has been in existence since 2015. <\/p>\n<p>The White House\u2019s new version is far more generous: It would require borrowers to pay at most just 5% of their discretionary income in monthly payments \u2014 and many borrowers wouldn\u2019t have to pay anything at all. In many cases, the taxpayers will absorb the remainder of your loan if you make these small, or in some cases nonexistent, payments for a period of 10 years.<\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/polumbo-student-loans-609.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/polumbo-student-loans-609.jpg\" alt=\"Photo taken in Sibiu, Romania\" class=\"wp-image-25348510\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/polumbo-student-loans-609.jpg?quality=75&#038;strip=all&#038;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/polumbo-student-loans-609.jpg?quality=75&#038;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/polumbo-student-loans-609.jpg?quality=75&#038;strip=all&#038;w=512 512w\"   style=\"display:none\"><\/a><figcaption>Officials from the Biden Education Department said that the plan is a \u201cstudent loan safety net.\u201d<\/figcaption><figcaption><span class=\"credit\">Getty Images\/EyeEm<\/span><\/figcaption><\/figure>\n<p>It\u2019s kind of complicated, but in practice, it means many borrowers will get thousands and thousands of dollars in debt paid off by the taxpayer instead of having to repay what they owe. You don\u2019t have to take my word for it. Adam Looney, a left-leaning policy scholar <a href=\"https:\/\/www.brookings.edu\/opinions\/bidens-income-driven-repayment-plan-would-turn-student-loans-into-untargeted-grants\/\" target=\"_blank\" rel=\"noreferrer noopener\">Brookings Institution reports<\/a> that while it will vary, the typical borrower will only have to pay back 50 cents for every dollar he owes \u2014 getting half his student debt \u201ccanceled\u201d over time.<\/p>\n<p>Biden spoke out in rare moments of candor. <a href=\"https:\/\/apnews.com\/article\/biden-politics-united-states-government-miguel-cardona-business-73dcbf54ddb3b53c9c3c5468cfdec3b9\" target=\"_blank\" rel=\"noreferrer noopener\">Education Department officials called it this plan<\/a> You can find more information at \u201cstudent loan safety net.\u201d That\u2019s exactly what it is: a new welfare program, this time helping a relatively well-off demographic in college and professional graduates, paid for by us working taxpayers.<\/p>\n<div class=\"single__inline-module inline-module inline-module--newsletter alignright\">\n<div class=\"inline-module__inner\">\n<h3 class=\"inline-module__title headline headline--combo-sm-md\">\nStay on top of the latest news\t\t<\/h3>\n<p class=\"inline-module__cta\">\nStay informed with Evening News.\t\t<\/p>\n<\/p><\/div>\n<\/div>\n<p>And it wouldn\u2019t be cheap! The nonpartisan Committee for a Responsible Federal Budget <a href=\"https:\/\/www.crfb.org\/press-releases\/proposed-student-loan-rule-costly-and-flawed\" target=\"_blank\" rel=\"noreferrer noopener\">According to the plan<\/a>, combined with Biden\u2019s previous proposals, will cost $600 billion \u2014 or more \u2014 over a decade. On average, that amounts to $4,000 per federal income taxpayer.<\/p>\n<p>However, there are more problems than just the cost. This plan would make the problem of student debt even worse. How?<\/p>\n<p>Well, it\u2019ll make borrowing money via government loans to pay for college an even more attractive option than it already is because future borrowers will know they\u2019re only going to have to repay a fraction of what they borrow. Unlike Biden\u2019s \u201ccancellation\u201d tied up in court, this isn\u2019t a supposedly one-time deal: It changes student-loan regulations for good.<\/p>\n<p>There\u2019s more money available in loans each year than is actually taken out. So we\u2019ll almost certainly see students taking out tens of billions more in student loans every year if this plan goes into effect \u2014 not fixing the problem but instead only blowing more air into the student-loan bubble.<\/p>\n<p>Oh, and don\u2019t be surprised if colleges jack up tuition prices to even more absurdly high levels in response.<\/p>\n<p>Biden&#8217;s plan could also seriously harm student incentives. It effectively rewards lower-earning graduates and punishes high earners, as you\u2019re going to get more forgiveness if your income is lower. This has led to the enactment of the <a href=\"https:\/\/www.crfb.org\/blogs\/student-loan-idr-changes-are-highly-problematic-report-shows\" target=\"_blank\" rel=\"noreferrer noopener\">most-subsidized degrees<\/a> Brookings states that music, drama, and cosmetology are all possible options. If the starting salaries are anything to be believed, it&#8217;s not exactly degrees that are in demand.<\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/AP23002547065229.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/AP23002547065229.jpg\" alt=\"Supreme Court building in Washington\" class=\"wp-image-25348813\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/AP23002547065229.jpg?quality=75&#038;strip=all&#038;w=2048 2048w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/AP23002547065229.jpg?quality=75&#038;strip=all&#038;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/AP23002547065229.jpg?quality=75&#038;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/AP23002547065229.jpg?quality=75&#038;strip=all&#038;w=512 512w\" \/><\/a><figcaption>This year, the Supreme Court will be witness to a showdown regarding the student loan bailout.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>What are the least-subsidized majors Business, computer science, engineering. You know, all those areas with high starting salaries because they\u2019re in most need in our economy right now.<\/p>\n<p>That\u2019s right: Biden\u2019s policy would distort market incentives and actively push students toward <em>Less <\/em>You can offer more tax bailouts to help them get productive, lower-paying degrees if they follow those routes. Isn\u2019t that, well, the opposite of what we should be trying to do?<\/p>\n<p>Of course, Biden\u2019s move makes more sense when you consider it as a <a href=\"https:\/\/nypost.com\/2022\/11\/23\/bidens-extension-of-the-student-debt-pause-is-profoundly-unjust-and-cravenly-political\/\">political maneuver<\/a>. It will effectively accomplish his goal of funneling tax dollars to a constituency \u2014 young, highly educated people \u2014 that overwhelmingly vote for the Democratic Party (and possibly saved Dems in the midterms). But shrewd politics don\u2019t change the fact it\u2019s a foolish policy with awful implications \u2014 and a raw deal for taxpayers.<\/p>\n<p><em>Brad Polumbo, a Robert Novak Journalism Fellow and co-founder of BASEDPolitics, is a journalist fellow at Robert Novak.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What\u2019s a president to do when Courts continue to block His plans to be flagrantly unconstitutional. It is possible to quietly backdoor this same agenda via another channel. At least, that\u2019s the approach President Joe Biden is taking with student loans. His plan is to \u201ccancel\u201d Transfer to taxpayers: Graduate student debt up to $20,000 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1805398,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[14850,8384,3706,5458,4164,3819,14849],"class_list":["post-1805395","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-backdoor","tag-bailout","tag-bidens","tag-bongino","tag-disaster","tag-report","tag-student-debt"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1805395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1805395"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1805395\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1805398"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1805395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1805395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1805395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}