Student Loan Truth Telling – WSJ

The Journal Edited Report: It offended the millions of people who paid back their loans. Image: Getty Images for We The 45 million Composite: Mark Kelly

Democrats were clamoring for the cost of their student loan takeover in 2010, and now they’re deceiving Americans about their motivation to cancel their student debt. But South Carolina Representative Jim Clyburn, a member of the House Democratic leadership team, dropped out of the game over the weekend.

Progressives seem to have found that student loan forgiveness is not common among Americans who didn’t go to college or who have already repaid their loans. Therefore, they now say that canceling $50,000 per borrower would be a boon for the working class. Senator Elizabeth Warren said 40% of student loan borrowers never finished college. If she were a company, the Federal Trade Commission could sue her for false advertising.

More than half of borrowers owe less than $20,000. The borrowers Democrats really want to help are white-collar workers with advanced degrees, who account for 56 percent of the $1.6 trillion in federal student debt. As Clyburn said in an interview with Bloomberg: “When you see a student coming out of school — law school or professional school — with $130,000, $150,000 in debt, it cripples the platform. economy in different ways”.

Higher education is not an investment? Well, that doesn’t pay off for millions of Americans, especially those with expensive graduate degrees. Many colleges require students to fund their PhD programs — which can take six to seven years to complete — but recipients of a doctorate in humanities in 2019 earned an average of $53,000. Mechanics make more things.

Mr. Clyburn may also be trying to support black colleges and universities that have historically underperformed outstanding students. Morris College in Sumter, SC, has a graduation rate of 25%. The median income for a borrower who signed up a decade ago was $27,644, and the debt owed to those who completed their degree was $31,450. About 97% of borrowers fail to repay their loans.

Radicals also argue that President Biden has the legal authority to cancel the debt. He is not. But they want him to do it anyway and dare the court to stop him. As Mr. Clyburn explains, “So my whole point is, use your executive power and let the courts have that power.”

This appears to be the governing legal principle of the Administration. Do what you want until the court declares it illegal. Recall the ban on illegal evictions and the regulations on vaccines and masks.

Mr Clyburn was less outspoken in his claim that “students deserve” loan forgiveness because “forces have raised interest rates and all sorts of fees on student loans.” Fact check: Student loan interest rates have fallen by about half since 2008 thanks to “forces” on Capitol Hill.

Congress in 2013 cut interest rates on student debt after Warren shouted that the federal government was making money off student loans by charging borrowers more interest than it cost to go. federal loan. This is another spoof. Falling interest rates only serve as another subsidy for universities, allowing them to take on more debt for borrowers.

Unions are now losing tens of billions of dollars as many borrowers are already saddled with debt so large that they can’t pay even smaller interest payments. So now Democrats want to bail out the underemployed borrowers they and the universities defrauded of.

To avoid the appearance of helping the wealthy, Mr. Biden is considering limiting debt forgiveness for borrowers to $150,000 ($300,000 for couples). However, this figure will still cover 97% of all debt owed by the borrower, including most recent law and medical school graduation scores. I’m going to continue to spread the word.

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Appears on May 3, 2022, print. Student Loan Truth Telling – WSJ

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