Vambo Posted February 8, 2023 Report Share Posted February 8, 2023 Opinion A new twist to Biden's student loan handout plan could cost taxpayers billions3 The federal government’s reverse Midas Touch is on full display with the Biden administration’s newly proposed rule on student loans. While the administration’s push for student loan debt amnesty is caught up in the courts, President Joe Biden is trying another back-door attempt to have you pay off someone else’s debt. How? Through massive changes to the "income-driven repayment" program, an already generous federal benefit to college graduates. But in a twist, the proposal would encourage Americans to choose low-return majors, providing larger taxpayer subsidies to students who choose gender studies while requiring engineers to repay their loans in full. The rule would increase the amount of income exempt from calculating student loan payments from 150 percent to 225 percent of the federal poverty line. That’s about $30,600, which for individuals aged 22-31, puts them in the 65th percentile for earnings – hardly something that should qualify them to make $0 monthly payments, as the rule would. And for many borrowers, the regulation would also reduce from 20 to just 10 years the amount of time before any remaining debt is fully "forgiven" by taxpayers. Under current rules, a sociology major who graduates with $30,000 in debt and earns the median salary for her field will repay her loans in full. But Biden’s new income-driven repayment plan will slash her monthly payments so much that she will not even cover interest on her loans for the first 13 years of repayment. After 20 years, she will have over $27,000 forgiven—90 percent of what she originally borrowed. Contrast this with an engineering major who also owes $30,000 and earns the median salary for her field. The engineer will fully repay her loans in 16 years, receiving no forgiveness. Quote Link to comment Share on other sites More sharing options...
calfoxwc Posted February 9, 2023 Report Share Posted February 9, 2023 They are selling America to death by giving away trillions of our tax money to buy votes. Really dangerous corruption there. Quote Link to comment Share on other sites More sharing options...
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