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President Joe Biden’s recent announcement to cancel college loans not only sends the wrong message to students who have taken out loans, it’s the wrong thing to do for America in these troubling economic times.

And forget the fairness of this latest spending plan, because it seems unfair to former students who have sacrificed over the years to pay off their college loans and equally unfair to new students taking out college loans now who will have to pay them in full.

Then there is the question of how much will the move cost our country and who will pay for it? According to Biden, it will cost $300,000,000,000 ($300 billion), but outside estimates are closer to $600,000,000,000 ($600 billion).

Add it all to an election year and let politics explode!

Politicians, as usual, are on both sides of the fence, yelling at each other like angry neighbors, so I went to two independent, nonpartisan organizations to read their respective analyses, the Penn Wharton Business Model of the University of Pennsylvania – a nonpartisan, research-based initiative that provides accurate, accessible, and transparent economic analysis of the fiscal impact of public policy – ​​and the Tax Foundation, the leading independent nonprofit policy organization country tax.

Penn Wharton says the three parts of Biden’s plan could end up costing us more than $1 trillion than the $300 billion claimed by the White House. Penn Wharton estimates debt cancellation alone would cost more than $500 billion. Loan forbearance, or loan repayment delays, could cost an additional $16 billion, and the final part, income-based repayment, which reduces the amount students repay over time, could cost $70 billion. billions of additional dollars and, “depending on future (Income-Driven Reimbursement) changes, the total plan could exceed one trillion dollars.

The Tax Foundation took a closer look at the impact the college loan forgiveness plan would have on our country. They said, of course, that it would benefit students whose loans would be reduced or paid off. But, there is no doubt that it would increase our national debt, currently over $30 trillion and growing, and the plan would worsen inflation, which is already negatively affecting every American household.

The Tax Foundation thinks the plan could “raise tuition costs as more students treat loans essentially as grants,” which is the exact opposite of Biden’s desire to make college more affordable.

I tend to believe what these two independent organizations come up with more than politicians, simply because I think the plan was totally a political move on Biden’s part to win votes for his party.

Its website says its college loan forgiveness plan is needed because “middle-class borrowers struggle with high monthly payments and bloated balances that make it harder for them to build wealth. , such as buying homes, saving money for retirement and starting small businesses. but he could say the same for people with credit card debt, and you don’t see him offering to pay off credit cards, do you?

Finally, who will pay the billions that the plan will cost? Taxpayers, of course.

This will include hundreds of thousands of people who could not afford to go to college, but will now be asked to pay off college loans for students who have gone to college and borrowed money .

Is it right ?

Well, that’s not fair.

You just want? I do. Here’s what I believe to be fair: When the borrower—in this case, the student—signed these student loan documents, they did so with the intention of repaying the loans. This is how it works. This is one of life’s most important lessons. You borrow money, you repay the loan.

Maybe, just maybe, they should teach that in college.

As always, that’s my 2 cents for the week.

I’m curious what you think of this college loan forgiveness plan. [email protected]

Greg Awtry is the former publisher of the Scottsbluff (Neb.) Star-Herald and the York News-Times of Nebraska. He is now retired and lives in Hubbard Lake. Greg can be contacted at [email protected]

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