Joe Biden Canceling $10,000 (or $20,000 in Pell Grant loans) for Student Loans
Just a few thoughts on Joe Biden forgiving $10,000 (and up to $20,000 for Pell Grant loans) in debt for student loans. Basically, if student A works hard, saves money, and pays back the loans, he or she gets nothing. But if student B takes out a loan and does not pay it back, this person gets $10,000 from the government. And, of course, “the government,” who will pay for these loans with the taxpayers’ money, mean you and me and every tax payer is paying for these loan repayments. They don’t just disappear – we are paying for other people’s debts, which they took and willingly and promised to pay back.
For 15 years, my wife and I put away $300 a month to help pay for our two son’s college education – over $50,000. And this did not even cover all expenses, but certainly made it easier to pay college expenses when the boys enrolled. We did not have large incomes – I was a teacher and coach and my wife taught nursing at the local college during most of this time. We also had a mortgage and other bills to pay, but we were willing to do without other things because we believed saving the money to help our boys go to college was a wise investment.
So we paid $50,000 plus.
If each of our son’s had taken out student loans instead of us saving for college, they would be getting back $20,000 ($10,000 each) with Joe’s college education reimbursement.
Another similar family with two kids could borrow $20,000, not pay it back, and then get $20,000 from the government because??? Why? How is this fair?
Another former student we know just got married. He decided to pay back his loans right away, even though he sure could use the money for other purposes – like helping with a down payment for a house for the newlyweds. However, because he was was honorable and chose to pay his debts, he gets nothing from the government. Other recent grads who have not paid back their loans each get $10,000 back. How is this fair?
Millions of people did not go to college for a variety of reasons. They did not take out any loans, but now they are paying (through their taxes) for the loans taken out by people who borrowed money to go to college.
I know a young couple who struggled financially during COVID with expenses. They financed a used car for about $12,000. Should the government pay for $10,000 of this debt?
Bottom Line
It is not right, fair, honest, or appropriate to have taxpayers pay the debts for people who willingly took out loans and signed a contract to pay it back. The government has no right to tell me and millions of other taxpayers to pay for other people’s bills. They cannot and should not tell you and me to pay for other people’s student loans, car loans, grocery bills, and mortgages.