Biden Makes Sweeping Changes to College Loan System – Who Pays

5
1723

The Biden administration is moving to make sweeping changes to the federal student loan system. People who pay their debts get to pay for those who don’t. This is socialism and replaces the work ethic of paying one’s own debts.

His proposal makes it easier to have loans forgiven, especially for public servants [moochers and deadbeats included]. It also puts new limits on the accrual of interest.

Biden is changing how the government interacts with the loan system using tax dollars. At the same time, it gives the government more control over a college education.

The government picks winners and losers with this loan system. Government workers are the big winners. It pushes more people to work for the big unionized government.

FIXING A BROKEN SYSTEM BY DOING MORE OF THE SAME

“We are committed to fixing a broken system,” U.S. Secretary of Education Miguel Cardona said, in a statement.

Key elements of the proposal include:

Students who owe a debt on loans from for-profit colleges that allegedly defraud them are eligible for forgiveness as a group. Many colleges won’t be allowed to require borrowers to sign mandatory pre-dispute arbitration agreements or class action waivers.

After 10 years, those who work for the government or specific non-profits [like leftist organizations?] can have debts canceled. They won’t have to pay late fees.

The practice of interest capitalization on federal student loans, in which accrued interest is added to the principal balance, is eliminated in cases of a borrower exiting a forbearance or defaulting on their loan.

In other words, private colleges are frozen out and the government gets to transfer the burden to taxpayers.

This is socialism or worse. It’s a shameless vote getter.

The public has 30 days to comment on the Education Department’s proposed regulations, and the final rules will go into effect no later than July 1, 2023.

As many as 40 million Americans benefit from the changes.


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