Biden Shoulders the Working Class with College Debt

President Joe Biden attends the Commencement ceremony at the University of Delaware, Saturday, May 28, 2022, in Newark, Delaware. (Official White House Photo by Adam Schultz)

You were smart, went to a low or no-cost vocational school, learned a valuable trade, and left with no college debt. Thought you got away from college debt problems scot-free, huh? Now, Joe Biden has found a way to saddle you with college debt you never thought you’d have, he’s giving you other people’s debt. Of course, he’s not making anyone pay it directly, in fact, he’s canceling the payments for many borrowers, but of course, that money has to come from somewhere. Joe’s asking you to either a) pay more taxes, or b) endure further inflation in order to inflate that debt away. The Hill reports on Biden’s plan:

President Biden officially announced on Wednesday that his administration is forgiving up to $10,000 in student loan debt for borrowers making less than $125,000 annually and $20,000 for Pell Grant recipients, marking the largest forgiveness of federal student loans per individual to date.

Biden also again extended a payment freeze on federal student loans and interest accrual, butting right up against an Aug. 31 deadline that would have kicked bills back into effect just before November’s midterm elections.

The payment pause is now in effect until Dec. 31.

The Hill reported on Tuesday that the White House would announce a plan to cancel a chunk of student loan debt and an extension of the existing pause, citing multiple sources. The announcement comes within the smallest window of time borrowers have had to determine when their payments would resume, which has aggravated advocates for leaving borrowers in limbo.

Loan payments were first put on hold in March 2020 under former President Trump, and the freeze has since been extended six times. Trump’s order froze the accrual of interest on federal student loans, effectively putting on hold $1.6 trillion in debt owed by more than 40 million Americans.

Does it sound fair to saddle frugal, productive members of society with the debt load of those who chose an expensive, but ultimately unprofitable education? What about the schools that pushed students into majors with no practical application and charged tens or sometimes hundreds of thousands of dollars for those degrees? Shouldn’t they share in the sacrifice rather than American workers who avoided it all?

Action Line: If you’re tired of politicians who treat productive Americans like piggy banks while rewarding the unproductive like they’re victims, you’re not alone. Join me by subscribing to my free monthly Survive & Thrive letter, and we’ll weather this storm together. And if you or your child or grandchild are a graduate of a vocational school or college who made the right choices and chose productivity, click here to download my free Special Report: How To Invest After Graduating College. Share it with anyone who needs to get started off on the right foot.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.