Another Extension on Student Loans May Be Financial Misstep by Biden
President Biden is supposed to make decisions based on fiscal responsibility. However, he keeps proving to the country that he is most definitely irresponsible.
Since taking office in January, the president has made a number of financial missteps.
He authorized another round of stimulus payments to people who were more than capable of gaining employment.
He authorized the unemployment benefits to continue so that people were unmotivated to look for jobs.
He created a âcatch & releaseâ program for immigrants so that they could come after American jobs.
The list of things he has done wrong for the economy can go on and on. Meanwhile, the Democratic-led Congress spends money as though there are quadrillions sitting in the federal reserve just waiting to be spent.
The fiscal irresponsibility has to come to an end.
Oh, but waitâ¦Biden is looking to buy the love of Americans. As his rating drops lower and lower because of the way heâs handling the border crisis and COVID-19, he looks to help those who canât (or wonât) help themselves.
The White House has confirmed that President Biden has extended the moratorium on student loans until January 2022. What this means is that people with federal student loans will not have to make payments nor will they have to worry about interest being accrued on existing loans.
According to Department of Education Secretary Miguel Cardona, âThe payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency.â
While the lifeline has helped, it cannot be one that is indefinite. Between the moratorium on student loans, the stimulus payments, and the extended unemployment benefits, Americans have gotten the help that they have needed. Now, itâs time to tear Americans away from the teat so that they can stand on their own two feet.
We are past the national emergency. Businesses are open and hiring. There are millions of jobs to be had, so thereâs no longer an excuse.
The federal government lent out the money so that Americans could get an education. Loans have to be paid back. Without the loans being paid back, it leaves the federal government short on money.
With the number of bills being signed by the Dems that cost billions if not trillions of dollars, the government needs as much money as it can get. It cannot afford to lend out the money for tuition indefinitely without knowing when it will be returned.
Federal student loans are a debt that must be dealt with â just like credit cards. The government isnât pausing anyoneâs payments or interest for credit cards, so why should federal loans be any different?
Well, the federal government canât control what credit card companies can do. They can only control student loans. And so, Biden will make this misstep so that it takes that much longer for the government to recover from the pandemic.
Cardona explains that the ânationâs economy continues to recover from a deep hole.â Exactly. Since the economy is in a deep hole, we need to ensure that the federal government has the funding that it needs.
While most people with student loans are happy to accept the moratorium, it leads many others to wonder just how many times it will be extended. Will it be indefinite? All of the people who had to pay back their student loans may watch an entire generation have their student loans dismissed.
According to Cardona, this is the final extension. Perhaps. The Biden administration has proven that theyâre not great at keeping their word, so weâll see. This likely isnât going to be the last financial misstep made by the administration, though.