Biden isnt excusing shit,,,this is nothing more than a POLITICAL TRICK to gain support this Election cycle. The Congress did not give the Education Secretary the power to waive student loans. He can POSTPONE loans though.
If Congress did pass this, it would set a
PERMANENT PRECEDENT and FUTURE Students would never pay their loans back; they would borrow as much as possible for blo, cars, parties etc,,,
Colleges would raise their tuitions 10x since the gov is paying it anyways.
Biden also proposes to excuse the debt after 10 yrs of payments BUT THE PAYMENTS WOULD BE REDUCED TO 5% OF DISCRETIONARY INCOME !!!! ( That means your payment is based on 5% of your Beer Money and not INCOME).
Students earning under 225% of the federal poverty level would pay nothing until the 10 year cancellation.
Another reason Student loans will not be paid off is because of investment vehicles called "SLABS" ( Student Loan Asset Backed Securities). Back when T-bills were not paying anything,,,Insurance companies, hedge funds, Pension plans, Banks were going broke UNTIL THEY SECURITIZED STUDENT LOANS INTO SLABS THAT RETURN 6% .
Now they can buy SLABS and make 6%,,,,do you think they are going to interfere with this ?
As for borrowers getting “value for their investment” — ha! Instead, many just get liberal mush that fails to win them jobs paying enough to repay their loans.
nypost.com