With votes still left to buy in the Georgia Senate runoff, President Joe Biden just extended the pause on student-loan repayments again until as late as September 2023. It’s a flat-out gift to well-off college grads at the expense of everyone else.
The move is, as the Committee for a Responsible Federal Budget puts it, “costly, inflationary, regressive and financially unjustified.” It also breaks Biden’s promises to end the pause come January.
But right after Election Day the courts started striking down his (blatantly illegal) bid to outright cancel student-loan debt up to 20 grand, raising charges that he’d outright conned young people into voting for Democrats with an order he himself had long acknowledged he lacked the power to issue.
That risks a backlash against the Democrat in Georgia, so he’s now pretending to hope court appeals will let him do the giveaway after all — and extending the repayment moratorium — begun during the COVID recession, extended repeatedly and finally set to expire next month — until 60 days after either 1) June 30, 2023, or 2) the end of litigation.
That is, he’s extending the con, at a cost to the taxpayers of $40 billion, CFRB estimates, mostly because Uncle Sam eats interest costs during the pause. That’ll push the total taxpayer hit since payments were first frozen in 2020 to a whopping $195 billion.
The big winners: Doctors, lawyers and so on who took out more loans to cover the costs of higher degrees. The losers: Those who’ve already repaid their loans, or never went to college (waitresses, construction workers, truck drivers) — but get stuck footing the bill. This is progressive?
Oh, and if Thanksgiving prices aren’t high enough for you: CFRB projects Biden’s extension will also boost inflation another 20 basis points.
And the excuse for both the extension and the larger giveaway, the pandemic, is long over. Biden’s cynicism, and his party’s, knows no bounds.
We shudder to think what future bills Biden will dump on the nation in the runup to the 2024 election.