Biden’s Foolhardy Second Attempt at Blanket Student Loan Forgiveness
Last week heralded the revelation of another pipedream from the Biden administration. The government outfit is gearing up to unveil its second stab at introducing blanket student loan forgiveness. This move comes a year after the Supreme Court rejected the administration’s prior attempt at such an audacious proposal.
The new mission of universal student loan forgiveness follows a similar endeavor announced in April. This previous exercise proposed to nullify student loans by broadening the scope of present loan forgiveness programs. Familiar territory for a regime that appears determined to cushion the financial follies of its citizens.
Functionaries at the Department of Education have allegedly started issuing notifications to borrowers about the impending rules. Coupled with these notifications, the department is also informing borrowers about the option to refuse this so-called ‘forgiveness’ – an ironic cherry atop this debt-dodging sundae.
The upcoming rules are, in theory, aimed at specific categories of borrowers. This includes individuals whose current loans exceed their original amounts due to accrued interest, borrowers who have been repaying for decades, and those technically eligible but yet to enroll in extant forgiveness projects.
Should the updated rules graduate into law, they could potentially impact even more borrowers than the original proposal. A sweeping testament to the Biden administration’s determined trajectory of rewarding imprudent financial decisions made by certain sections of the public.
According to Biden’s technicians at the Education Department, over 30 million borrowers would become eligible for ‘forgiveness’ should the proposal come to fruition. Their first attempt, however, which failed at the Supreme Court hurdle, was predicted to appease a mere 27 million borrowers.
Despite the Education Department’s vocal predictions about releasing these finalized rules sometime in the autumn, dark clouds of doubt hang over the entire venture. With the November elections around the corner, skepticism surges over the realization of these plans within the limited timeframe of Biden’s term.
Further adding to the uncertainty around the program is the potential for legal challenges. These seem inevitable given the precedent set by the Supreme Court’s veto of the prior attempt. Therefore, the chances of the Biden administration essentially overriding legal objections and actually implementing this sweeping loan dismissal appear grim.
Presently, the entire exercise could be viewed as a desperate eleventh-hour political gimmick on Biden’s part. It is a rather transparent attempt to curry favor with younger voters and those with higher education credentials, instead of it having any basis in sound fiscal policy.