Biden Plays Americans With Student Loan Plan
(RepublicanDaily.org) – A bait and switch occurs when a salesperson attracts leads with enticing promises before selling them something entirely inferior to the product or service they were led to believe was on offer. However, this tactic has applications outside the world of business as well. It appears President Joe Biden’s debt relief scheme may have been just such an effort.
What Is the Student Debt Relief Plan?
The Biden Administration unveiled the controversial student loan debt forgiveness plan in August of this year, highlighting that it marked the completion of one of the president’s campaign promises. The announcement cited the expanding cost of third-level education for lower-income students, and the decreasing effectiveness of the Pell grant in meeting these needs.
To address these issues, the administration decided to relieve up to $20,000 in government-held student debt for Pell grant recipients, and up to $10,000 for those who didn’t receive the grant. This relief came with the caveat that those earning more than $125,000 per year were ineligible, a measure that purportedly sought to ensure the flow of benefits to the lower-income graduates who need them most.
How Biden’s Debt Relief Isn’t Doing What It’s Supposed To
However, a recent report from the Washington Free Beacon has highlighted a number of shortcomings in the execution of the scheme that will allow higher earners to benefit from it.
Firstly, the application form only requires graduates to have earned less than $125,000 in either 2020 or 2021 to be eligible for relief. That means individuals who earned slightly less than the limit in 2020, before earning far more than it in 2021, will be entitled to have their debt burden reduced courtesy of the American taxpayer.
Secondly, applicants don’t need to submit proof of earnings in order to qualify for relief. Though the form does state that Internal Revenue Service (IRS) audits are a possibility, it does not elaborate on any means of enforcement the authorities might use to catch and punish those who try to cheat the system.
Another major concern the Free Beacon report highlights is the cost of the measure. According to an analysis from the Congressional Budget Office (CBO), the program is likely to cost around $400 billion over the next 30 years. Also, because the scheme will cause less money to flow to the US Treasury, the national budget deficit is likely to increase.
In light of these issues, what is your opinion of Joe Biden’s student debt relief? Will it be worth the money in the long run?
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