President Biden campaigned on a promise to provide $10,000 in student loan debt relief for all student borrowers. Last week the President went a step further, canceling $10,000 of debt for most students and $20,000 for those who previously received Federal Pell Grants. The cancellation of student loan debt is estimated to cost roughly half a trillion dollars over a decade — akin to a bailout of high-income graduates, paid for by lower income workers.
With many commentators still distracted by this latest policy move, the administration now plans to use regulatory changes to the Borrower Defense to Repayment program as a backdoor means of broadening the share of those eligible for loan forgiveness.
If implemented, these changes will shift the cost of higher education funding from high income college graduates to hard-pressed tax payers, many of whom didn’t even go to college.
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