We find today that the nation is in an interesting position, in which government-guaranteed student loans, something that the Constitution does not allow the federal government to guarantee, were “paused” for three years due to the recent COVID issue, which essentially abrogates centuries of contract law. And now, these loans are not being repaid on time since the resumption of those required payments.
In a blog post, U.S. Undersecretary of Education James Kvaal said 60 percent of student loan borrowers whose payments were due in October made them by mid-November. He said 22 million people had payments due in October, and over 4 million owed payments for the “first time.”
“While most borrowers have already made their first payment, others will need more time. Some are confused or overwhelmed about their options,” Kvall said. ”We want to make sure borrowers know that our top priority is to support student loan borrowers as they return to repayment.”
Interesting how people’s car payments or mortgage payments were placed on no such pause. Why? Because they aren’t guaranteed by the federal government.
These student loan borrowers, in a sane world, should be asked this:
“Did you sign a contract? You did? Then start paying your loan payments.”
But we don’t live in a sane world any longer. The Biden Administration seems determined to wipe away those contracts, which they have no Constitutional authority to do. There’s no Constitutional authority for the government to be involved in any way in the education finance process, and yet they are, and the amount of federal money poured into higher education has resulted not only in the expansion of various “Underwater Ethnic Dog-Polishing Studies” degrees but also all manner of other wastes of money.
It can’t be allowed to continue. And yet the Biden Administration continues down this ridiculous path:
Last week, President Biden announced $4.8 billion in student loan forgiveness for federal borrowers who work in public service fields. Approximately of those eligible borrowers should have already qualified for the already-existing public service loan forgiveness program, but had not yet received it due to clerical errors.
In a statement, Biden said:
From Day One of my Administration, I vowed to improve the student loan system so that a higher education provides Americans with opportunity and prosperity – not unmanageable burdens of student loan debt,
I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams.
Here’s a better idea. Get the government out of education. As I wrote last July:
It’s time to try something new. Vouchers and charter schools are a good start; of course, the best answer is to privatize the lot and let a thousand flowers bloom. New schools of every sort would arise quickly, all seeking to take advantage of this new market that has just opened up. And it would be a big market with a big potential for profit; plenty of people would be willing to take it on, and success or failure in that market would be dependent on nothing more than how successful in life the graduates of those institutions prove to be.
If you want to send your kids to the Dylan Mulvaney School for the Terminally Woke, go for it. If you want to send your kids to the Academy of Engineering and Hard Sciences, more power to you. And if a recent high-school graduate wants to go to a tech school for a welding certificate or Oberlin College for a degree in Underwater Ethnic Dog-Polishing, let them fly free.
But that placement of responsibility also means that parents and students must be prepared to deal with the consequences. No student loan forgiveness. If they can’t find a job with their useless degrees, no bailouts, no handouts from the public treasury. They made decisions; now there are consequences. One positive consequence of this would arise very swiftly — all of the various, useless “Studies” degrees at the university level would go away very quickly.
That would be ideal, of course; but the Biden Administration seems determined to come back to the same old well of “student loan forgiveness.” There’s a problem, though; one can’t just “cancel” or “forgive” student loan debt, or indeed any debt. That debt can only be transferred to the taxpayers. So in this scenario, the money borrowed by upper-middle-class kids to get degrees in Ethnic Underwater Dog-Polishing Studies will be transferred to the nation’s carpenters, electricians, used-car salesmen, and everyone else who actually contributes in some meaningful way to our society.
Money has been disbursed. It has to be repaid. That repayment has to come from somewhere. It should come from those who borrowed the money, not from the taxpayers. That’s not a tenable solution. It can’t continue. And what can’t continue, won’t continue.