EJ Antoni, Heritage Foundation economist, joins Mark Reardon to discuss the Biden Administration announcing a 39 billion dollar plan for student loan forgiveness and why Bidenomics is nothing to brag about.
“So what the Supreme Court essentially said was that you can't grant this kind of just blanket forgiveness. It needs to be targeted. And one of the problems with what the Biden administration has done now, is it frankly is not sufficiently targeted. So, is there some amount of targeting? Sure. Absolutely. But there still is way too much painting with a broad brush and saying to all of these people who were perfectly capable of paying off their loans but chose not to that they are now somehow going to be, be eligible for forgiveness. I mean, again, it is completely unfair to all of the people who despite hardship, still managed to pay off their loans and now aren't getting anything themselves. And in fact, they're actually gonna be helping to foot the bill in higher taxes in the future,” shared Antoni.
He continued, “I don't understand why Republicans are not just hammering this home like crazy. This is a 90-10 issue. People do not think blanket student loan forgiveness is a good idea. Not, not just because of the fairness issue, which is obviously a big issue, but also because you know, this is gonna create a tremendous what we call moral hazard. Meaning you're going to encourage people to take out loans in the future, too much. People who wouldn't even need to take out loans, etcetera, you know, that's gonna cause colleges to smell blood in the water. Students are gonna have more access to financing, which means colleges and universities will increase the cost of attendance.”