Another Student Debt Scheme
Commentary
After losing at the Supreme Court, President Joe Biden has floated another student debt relief scheme. Lawyers and judges will take a while to decide if this new approach passes constitutional muster, no doubt, until after the 2024 election. But while the legal gears turn—slowly as ever—the political-economic implications will emerge immediately and be the same as last time.
The last student debt relief plan would have forgiven $10,000 in outstanding debt relief to individuals below a certain income level and an additional $10,000 to Pell Grant recipients. The program would have cost the Treasury some $400 billion in lost revenue flows….