Biden Rolls Out New Scheme To Turn Student Loans Into Welfare

With President Biden’s attempted $400 billion student-loan forgiveness scheme facing potential doom before the Supreme Court next month, the administration is pursuing an alternative path to transforming federal student loans into welfare.  

Dressed up as a “student loan safety net,” this scheme will work its mega-billion-dollar mischief by changing repayment rules to slash payments for almost everyone and eliminate payments altogether for the rest.

Once again, the White House is bypassing Congress, claiming that three different education laws give the administrative state the power to rework payback rules — to include those that kill repayment altogether.

“Student debt has become a dream killer,” said Education Secretary Miguel Cardona. “This is a promise to the American people that, at long last, we will fix a broken system and make student loans affordable.” Yes…by making them disintegrate and sticking everyone else with the tab.

Under the Biden administration’s proposed Revised Pay As You Earn (REPAYE) plan, individual borrowers who make less than roughly $30,600 won’t have to make any payments at all. The same goes for any borrower in a family of four who makes less than about $62,400.

“Lo, the administration is making college free for grads who go to work as a barista or bartender, as Alexandria Ocasio-Cortez did after graduating from Boston University,” writes the Wall Street Journal editorial board.

But wait — it gets better for borrowers and worse for the rest of us who are pulling this overloaded wagon. Today, the federal regime cancels remaining debt after 20 or 25 years of payments. Biden’s handlers want to zap the remaining balance after just 10 years for those who borrowed out $12,000 or less. Every $1,000 after that tacks on another year.

Most ridiculous of all, in that accelerated countdown to debt evaporation, borrowers get credit for years when they aren’t making any payments at all. Borrowers can even say goodbye to the accrual of interest when they’re not making payments.

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