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[quote=Anonymous]The student loan debt relief package is one of the few instances in which both the WSJ and WAPO agree. They both slammed it today.

WAPO, saying that its was "ill-conceived and misdirected" wrote: "The unemployment rate for people with bachelor’s degrees and higher is just 2 percent. It’s hard to make the case that college graduates are still facing an unprecedented crisis.

The loan-forgiveness decision is even worse. Widely canceling student loan debt is regressive. It takes money from the broader tax base, mostly made up of workers who did not go to college, to subsidize the education debt of people with valuable degrees.

Mr. Biden’s student loan decision will not do enough to help the most vulnerable Americans. It will, however, provide a windfall for those who don’t need it — with American taxpayers footing the bill."

Meanwhile, the WSJ wrote: "This is easily the worst domestic decision of his Presidency and makes chumps of Congress and every American who repaid loans or didn’t go to college...

Democrats said these plans would reduce defaults. They haven’t. Federal student debt has ballooned because many borrowers don’t make enough to cover interest and principal payments, so their balances expand. Student debt has nearly doubled since 2011 to $1.6 trillion, though the number of borrowers has increased by only 18%.

Now Mr. Biden is cutting undergrad payments to a mere 5% of discretionary income. The government will also cover unpaid monthly interest for borrowers so their balances won’t grow even if they aren’t paying a penny. This will mask the cost to taxpayers of the Administration's rolling loan write-off. Student-loan debt won’t appear to swell even as it does. What a fabulous accounting trick."

Add to this the Penn Wharton estimate of a trillion dollar cost posted above and one really doubts the wisdom of this move. Note the administration so far has not given a cost estimate of the package.[/quote]

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