“…if any of you err from the truth, and one convert him: He must know that he who causeth a sinner to be converted from the error of his way, shall save his soul from death, and shall cover a multitude of sins.”
- James 5:19-20
Tuesday, August 23, 2022
Is Joe Biden About To Throw A Bone At Student Loan Borrowers?
“Not even a bone. It is a political play and totally unserious.”
UPDATE: Biden went ahead today andcancelled $10,000 in student loans for some borrowers ($20,000 for Pell Grant borrowers). He also extended the postponement of payments through December 2022. This is ridiculous and not for the reasons that my fellow Conservatives like Rep. Jim Jordan and Charlie Kirk keep mentioning (I hate to disagree with them but this is one issue that they in many ways get wrong. I am surprised they have not criticized Biden for being partly responsible for causing the student loan crisis and for removing the options and protections that borrowers had years ago. See article below by International Business Times). Notice how Biden failed to address the fact that bankruptcy is still missing from the rights of borrowers (because it was Biden who voted to remove it) and notice how the postponement extension does nothing to help the ongoing crisis. It just means that for over 21/2 years borrowers have faced a severe and forced delay in trying to pay off their loans without real solutions and at a time when the economy with growing inflation has not restored our nation back to pre-COVID conditions.
And there was no mention about the stalled bill S.2598!
The following video by Alan Collinge of Student Loan Justice and author ofThe Student Loan Scam: raises a few legitimate points in response to Biden’s latest actions:
Here is a very good interview with Alan:
UPDATE 2:
Why are Senators Schumer and Warren celebrating Biden’s latest actions on student loans when his actions differ from the proposals they kept pushing Biden to accept? Answer: They are all in on the ruse!
UPDATE 3:
My fellow Conservatives on Facebook have bought into the common myths and conceptions about student loans and about borrowers (not all borrowers are “slackers”) made by leading critics on student loan relief or cancellation. They apparently are unaware of the fact that the rights and protections enjoyed by other people in debt including mortgage and credit card debts are excluded from student loan borrowers and they apparently are unaware of the fact that evenif the entire federal student loan program ended today taxpayers would not have to pay for it because the money loaned does not have anything to do with tax dollars for non-borrowers. The studies claiming otherwise are bogus (see Alan Collinge’s videos addressing this issue with facts). Student loan forgiveness always effects the borrower and never touches taxpayers in general because of what’s called “Cancellation of Debt (COD)” income. Borrowers with forgiven debt would receive a Form 1099-C as documentation. The debt forgiven is taxable income. Therefore, Biden’s student loan forgiveness is meaningless because it provides zero relief for borrowers.
Here’s what President Biden’s student loan forgiveness means for your taxes
Taxable student loan forgiveness often creates a significant burden, especially for lower-income borrowers with large balances, Miller said.
Typically, when lenders forgive at least $600 of student loans and it’s taxable, they’ll send borrowers and the IRS a copy of Form 1099-C, which includes the exact amount of canceled debt, said Tommy Lucas, a CFP and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.
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The latest news reports suggest that Clueless Joe Biden is prepared to reduce the student loan debt by only $10,000 per borrower. This is significantly lower than the $50,000 reduction proposed by a few leading members of Congress.
He is basically throwing borrowers a bone.
Biden’s plan is as laughable as the 'Supplemental' Stimulus Checksthat were issued in response to the horrendous negative economic impact made by the China Virus and the lockdown. Many businesses are still suffering to the point they are understaffed and facing hurdles caused by the pandemic and currently by inflation.
Biden is the same person who helped to increase the out-of-control student loan debt. He backed bills that made it more difficult to pay off student loans and he took away from student loan borrowers the protections that people with mortgages, for example, have in place including the bankruptcy option.
Joe Biden Backed Bills To Make It Harder For Americans To Reduce Their Student Debt
As a senator from Delaware -- a corporate tax haven where the financial industry is one of the state’s largest employers -- Biden was one of the key proponents of the 2005 legislation that is now bearing down on students like Ryan. That bill effectively prevents the $150 billion worth of private student debt from being discharged, rescheduled or renegotiated as other debt can be in bankruptcy court.
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And now his fallen economy and rising inflation and poor decline in GDP makes it much more difficult for all Americans to pay bills and put food on the table. It is terrible the student loan program was created in the first place because in the long-run it has caused more problems than it has solved. The negatives far outweigh the positives but this probably was not envisioned when the program was started.
What is also troubling is the fact that lenders, including the government, irresponsibly and hyperactively gave large loans to kids fresh out of high school and to people with a history of health problems or other problems with the promise from their school that they will live the American Dream after graduation and not worry about paying their bills. These schools on orientation day sent out their best salespeople who cleverly made it sound like going to college is the equivalent of winning a billion dollars in the national lottery! The reality, however, is far from this well-manufactured perception.
Recommended Reading:
No, Student Loan Cancellation will not Benefit the “Wealthy”
