Don’t you like to know the price before you buy something? Being the simple financial planner that I am, I think it’s important to check the price tag before purchase— a lesson I learned thanks to good parents and lots of economic classes.
Clearly, Joe Biden must have skipped those classes. He and his D.C. pals don’t care about the purchase cost as long as he can take your money and give it to someone else. Better yet if he can borrow the money and make you, your kids, and your grandkids pay for his irresponsible debt.
We’re talking about Biden’s unilateral student loan payoff, of course. When the plan was announced, the White House didn’t know the real cost of the program. We just learned from the Congressional Budget Office that the lofty price tag is $420 Billion of taxpayer money.
On top of that, there’s another $150 Billion cost for the lessening of terms on the income-based repayment plans. Your level of income determines how much the payments are and the remaining debt is canceled after ten years.
Fortunately, there are smart Americans out there who can do the math and assess the costs like Frank Garrison from Indiana— a participant in the Public Service Loan Forgiveness Program who has filed a federal lawsuit to stop Biden’s student loan write-off. He has correctly determined the debt cancellation will cost him $1,000 in state tax. Therefore, he receives no additional benefit from the cancellation program in the first year, and he cannot avoid this hit since the $20,000 in loan cancellation is automatic.
Such are the problems when the Executive Branch makes one of the biggest usurpations of Congress in modern history. We wish Mr. Garrison well for his courage to take Joe Biden to task.