Stop the Student Debt Transfer to Taxpayers
President Biden is going to force every American taxpayer to pay off $10,000 of student debt for individuals making less than $125,000.00 a year or $250,000.00 for couples.
The upfront cost of this debt transfer from private citizens to the taxpayer will exceed all the inflationary reductions made in the Inflation Reduction Act. It will not only make inflation worse but will inflate college prices by providing a disincentive for colleges to rein in their tuition increases. President Obama’s own economic advisor noted on social media that the plan will increase inflation by at least a quarter percent. The University of Pennsylvania’s Wharton School estimates the plan will cost each taxpayer in America $2100, and the full cost will be $300 billion.
Progressives say taxpayers are not actually going to owe the money. Actually, taxpayers already paid the money to colleges on behalf of college students. Those students, in turn, contractually, voluntarily obligated themselves to pay the taxpayers back with interest. Forgiving that money means the taxpayers will not see a return on their advance. The government will have to cover that deficit by raising taxes, cutting government services, or adding to the national debt. The latter will be the easy way out. That will increase debt service payments and reduce services from the federal government over time, hurting the poor.
It is profoundly immoral and will exacerbate future student debt problems and create deep moral hazards as colleges will have an incentive to get students into further debt for further bailouts. There is no incentive for colleges to cut costs now. After the Inflation Reduction Act gave taxpayers a $7500 tax credit for electric vehicles, Ford Motor raised the price of the new electric F-150 pickup truck by roughly that amount. Other automakers followed suit. Now colleges will do the same.
Progressive theologians claim there is nothing more Christian than forgiving debts, but outsourcing Christian charity to the government is immoral. It is particularly immoral when the fifty-year-old electrician who makes $75,000.00 a year without a college degree is asked to bail out the twenty-five-year-old lawyer making $100,000 a year.
This is morally wrong. Take action today. Go here now to my action center and call your member of Congress to oppose this. Pick up the phone and melt down the phone lines in Washington. Be polite but forceful. Let them know you should not have to pay off someone else’s debt, and you should not be obligated, as a taxpayer, for the debt someone contracted to pay back.
Make sure they know how offended you are that Biden would use the HEROES Act, passed after 9/11 to help student soldiers fighting and dying in Iraq, to help woke warriors whining on Twitter about their student loans.