• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Blog Home
  • Topics
    • Keystone Press Releases
    • Politics and Government
    • Legislation
    • Nevada News
    • Tourism & Gaming
    • Rural Nevada
    • Business
    • Opinion
  • Membership
  • Contact Us
  • About Keystone Nevada

Keystone Nevada Korner

Welcome to The Keystone Korner The Official Blog of Keystone Nevada

Home » Biden’s student loan announcement is a regressive, expensive mistake

Biden’s student loan announcement is a regressive, expensive mistake

August 25, 2022 by Pauline Lee

The Washington Post Editorial Board, August 24, 2022

Under progressive pressure to force grandiose policy changes, President Biden has generally embraced sensible reforms over flashy gimmicks. But his Wednesday student loan announcement did just the opposite.

The loan-forgiveness decision is even worse. Widely canceling student loan debt is regressive. It takes money from the broader tax base, mostly made up of workers who did not go to college, to subsidize the education debt of people with valuable degrees. Though Mr. Biden’s plan includes an income cap, the threshold does not reflect need or earnings potential, meaning white-collar professionals with high future salaries stand to benefit. Student loans, moreover, are a poor proxy for household income: An analysis by policy researcher Jason D. Delisle found that, in 2016, students from high-income and low-income families were just as likely to take on debt for their first year in an undergraduate program — and students from high-income families borrowed the largest amounts.

Mr. Biden’s plan is also expensive — and likely inflationary. The Committee for a Responsible Federal Budget estimates that extending the loan pause to the end of the year would cost $20 billion, while forgiving $10,000 for households making less than $300,000 would cost $230 billion. Together, these policies would nullify nearly a decade’s worth of deficit reduction from the Inflation Reduction Act. Moreover, it is unclear that the 1965 Higher Education Act even grants the president the legal authority to take such a sweeping step, given that it was historically understood to permit only more targeted relief.

True, Mr. Biden did not go as far as many on the left wanted: Democratic lawmakers and activists had urged the White House to cancel up to $50,000 in student loan debt, with no income limits. Mr. Biden was right to rule that out earlier this year — and would have been wise to focus on reforms that help the neediest.

His proposal to make the income-driven repayment program more generous at least targets a program that scales the help people get with their incomes. But a better approach would focus on expanding Pell Grants and other college finance programs pinpointed to the truly needy. Mr. Biden’s latest budget proposal called for doubling the maximum awards for Pell Grants by 2029 — a measure that would make college more affordable for low-income families for years to come. And, as with other worthy programs, Congress and the Biden administration should find a credible way to pay for such an expansion, rather than just adding more to the national tab.

Mr. Biden’s student loan decision will not do enough to help the most vulnerable Americans. It will, however, provide a windfall for those who don’t need it — with American taxpayers footing the bill.

Filed Under: Opinion Tagged With: college loan cancellation, Inflation Reducation Act, loan forgiveness, President Joe Biden

Primary Sidebar

Connect with Us

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
Bootleg Bistro
Bootleg Bistro Ad
SLLC_Keystone_Blog-Ad_300x500_10%-Off-Repairs_05.19.21
CIOServices Ad 300x500-100
BRH Keystone Ad JPEG
Willow_Manor
Keystone Corporation Nevada

News Topics

  • Keystone Press Releases
  • Politics and Government
  • Legislation
  • Nevada News
  • Tourism & Gaming
  • Rural Nevada
  • Business
  • Opinion

Rural Nevada

Winnemucca braces for massive lithium mine

September 18, 2023 By Courtney Holland

By Ray Hagar, Nevada Newsmakers, September 18, 2023 Winnemucca, a town of more than 8,600 residents off Interstate 80 in Northern Nevada, is proud … [Read More...] about Winnemucca braces for massive lithium mine

Weather may have slowed January sales

April 8, 2023 By Courtney Holland

By The Record Courier Staff, April 4, 2023 For the third month in a row, Douglas County merchants reported a decrease in taxable sales, though not … [Read More...] about Weather may have slowed January sales

30 new projects in Pahrump: Arby’s, Chipotle, Midas Muffler, 3 convenient stores & more

March 29, 2023 By Courtney Holland

By Robin Hebrock, Pahrump Valley Times, March 28, 2023 Business is booming in the Pahrump Valley, with dozens of new companies looking to bring … [Read More...] about 30 new projects in Pahrump: Arby’s, Chipotle, Midas Muffler, 3 convenient stores & more

UPS and AVK America plan to expand in Douglas County

March 19, 2023 By Courtney Holland

Staff Reports for The Record Courier, March 17, 2023 United Parcel Service plans to build a new 168,000 square foot building in Douglas County, … [Read More...] about UPS and AVK America plan to expand in Douglas County

Opinion

EDITORIAL: Never Never Land for California regulators

September 25, 2023 By Courtney Holland

By the Las Vegas Review-Journal Editorial Board, September 24, 2023 It’s shocking, but California’s efforts to force-feed electric vehicles to its … [Read More...] about EDITORIAL: Never Never Land for California regulators

OPINION: American mining needs Gen Z

September 25, 2023 By Courtney Holland

By Rich Nolan, Reno Gazette Journal, September 18, 2023 By 2030, Gen Z will be 30 percent of the American workforce. This tech-savvy generation has … [Read More...] about OPINION: American mining needs Gen Z

OPINION: DExit to the desert: Why I left Delaware for Nevada

September 25, 2023 By Courtney Holland

By Phil Shawn, The Nevada Independent, September 15th, 2023 Some 80 years ago, visionaries saw a dusty military outpost in the middle of the Nevada … [Read More...] about OPINION: DExit to the desert: Why I left Delaware for Nevada

Tags

Adam Laxalt Biden Administration Business Business Columns Casinos & Gaming Catherine Cortez Masto Clark County Clark County School District economy Editorials Education Elon Musk employment Gov. Joe Lombardo Gov. Steve Sisolak Governor's Office of Economic Development (GOED) Housing inflation Inside Gaming Joe Lombardo las vegas Local Local Las Vegas Local Nevada mc-business mc-local mc-news mc-opinion Nevada News North Las Vegas NPRI Opinion Opinion Columns PAID Politics and Government Real Estate Insider Roe v. Wade school choice Sen. Catherine Cortez Masto small businesses Sports Tesla tourism Victor Joecks

Footer

Copyright © 2023 · Keystone Corporation - All Rights Reserved · Log in
Privacy Policy
By accessing this site, you are agreeing to our Terms of Use

The views, opinions and conclusions expressed by the authors of any article or post on the Keystone Korner are those of the author and do not necessarily reflect the opinions of Keystone Corporation or its officers and board members. Moreover, any reference to a person, party, product or entity does not constitute an endorsement or recommendation by Keystone Corporation or its officers and board members.