As I have said more times than I could count, the federal government’s incursion into college finance was one of America’s worst blunders. It has spawned all kinds of bad effects, and those bad effects then lead the politicians to “fix” them in ways that just lead to further waste and fraud.
In this Minding the Campus article, Andrew Gillen writes about what the Biden administration has just done to the Public Service Loan Forgiveness program.
Gillen explains that, “PSLF was launched in 2007 and provides accelerated loan forgiveness for politically favored workers. Other college graduates with student loan debt need to make payments for at least 20 years before qualifying for loan forgiveness, but PSLF offers forgiveness after just 10 years of repayment to those that work for the government or some non-profit organizations.”
The assumption behind it was that if you work for government or a non-profit, you are more deserving than a person who finds employment in the grubby private sector.
What has Biden done?
Gillen goes through the changes — for example: “The old rules required a minimum of 120 on-time full payments to be eligible for forgiveness. Now, the Biden administration has waived ‘the requirement that payments be made in the full amount and on-time.’ Would a one-cent payment made five years late count toward the required 120 payments? If so, that’s an Orwellian definition of ‘payment.’”
So easy to be generous with other people’s money!
There’s more. Read the whole thing.
If the U.S. is ever to get its fiscal house back in order, one thing that must happen is to stop federal lending — to anyone.