In an environment where we are learning of lost COVID relief funds, fraud in obtaining COVID funding and misuse of COVID funds when they were received, the US Government is preparing for another spending extravaganza!
This time it is repayment of student college loans with a cost of over ONE TRILLION DOLLARS! To make it worse, it is expected that this will be done by Executive Order without the approval of Congress. Even though, Congress, in particular the House of Representatives has the “power of the purse”, the ability to tax and spend public money for the US!!
So, who would you expect to be the beneficiaries of these giveaways? First, those who had the opportunity to attend college. Secondly, those who made a personal commitment to borrow and repay their debt (signed for the debt). In addition, many of those in debt made choices to attend expensive, prestigious and/or ivy league colleges; made choices to study curriculum which do not provide good odds of obtaining high paying jobs; or incurred the debt for advanced degrees in law, medicine and science to attain high paying careers.
So, who would you expect to be the taxpayers who pay the bill for the giveaways? First, those who didn’t or didn’t have the opportunity to attend college. Second, those who made a personal commitment to borrow and repay their debt (signed for the debt and repaid it). Third, parents and grandparents who set up college savings account for their children and grandchildren or paid for their college education. Fourth, seniors living on social security and fixed incomes. Fifth: everyone else. Sixth, future generations.
You lose your house if you don’t pay the mortgage. You lose your car if you don’t make the car payment. You can’t lose your degree for not paying your college loan, so what is the incentive for the Government to repay it?
The proposal to repay college debt appears to me to be a giveaway to those who were privileged to attend college and some cases obtain advanced degrees. The only question I have is WHY would the Government want to spend our money on this?