The college loan forgiveness program is much worse than you thought. In addition to the $10,000 and $20,000 giveaways, Democrats, under Biden the figurehead, are planning a new income-driven repayment (IDR) system for college borrowers.
Biden – Democrats – rolled back borrower’s maximum monthly payment on undergraduate loans to 5% of discretionary income. It also cuts the amount of earnings considered “discretionary.” Then, after ten years, the debt is wiped out under the IDR.
As if that isn’t enough, “no borrower earning under 225% of the federal poverty level … will have to make a monthly payment” at all. And even those earning more than $50,000 right after graduating would face trivial payments. He sticks the obligation on taxpayers.
It’s the beginning of free loans to a lot of people until the money runs out, and it will.
Reason’s Robby Soave explains the IDR gives universities and students incentive to stick it to the taxpayers. That is the goal. Students can borrow without concerns, and universities can keep raising tuition.
“By encouraging students to take on even more debt, and then never expecting them to repay it, the Biden administration is creating a system where everyone involved in higher education has the incentive to fleece the American people,” Soave concludes.
IDR is a win-win for the Left. Everyone goes to college to be indoctrinated in hard-left ideology. And far-left ideologues get rich as the middle class evaporates.
It’s Biden’s gift to the fools in universities. Next year, it will cost a fortune to go to two-bit college mills.
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