“The cancellation of student debts of less than $10,000 is a pittance compared to what’s been happening behind the scenes and is already planned for the future. Nearly all the Paycheck Protection Program loans of 2020 have already been forgiven, including those made to the wealthiest 1 percent. The student loan forgiveness scheme is the same.
As David Stockman has pointed out, it’s a pure transfer from working taxpayers to the elites with graduate-level educations. The most indebted among this group are lawyers and doctors. This is only the beginning, just to show what’s possible and what’s coming.
“Approximately 43 million student loan borrowers in the United States owe a collective nearly $1.75 trillion in federal and private student loan debt as of August 2022,” Stockman wrote. “But when you look at the average amounts owed, the case is crystal clear: Student debt is overwhelmingly an investment in professional credentialization that should never have been an obligation of the taxpayers in the first place.
“And now between subsidized interest rates, the COVID moratoriums, and Joe Biden’s $10,000 cancellation, it amounts to a taxpayer subsidy of the most affluent class of American citizens.”
“Another estimate, this one from the budget model from the University of Pennsylvania, projected the cost of the student loan forgiveness to be between $300 billion and $980 billion over the next 10 years.
Most of the people who would have their debt forgiven are well-off, or those who are in the top 60 percent of income distribution, the university stated.”