The Biden White House utilized a COVID-justified waiver to surreptitiously turn a tiny student debt forgiveness program into a gigantic scheme which can wipe off limitless sums of student loans for government employers and staff of charities and activist think-tanks.
The average amount of debt waived under the exemptions was $60,000, and between Oct. 2021 and June, roughly 150,000 government and nonprofit employees had $9 billion in student loan debt canceled. According to Lindsey Burke, director of the Heritage Foundation’s Center for Education Policy, the program was already a gift to the teachers unions and the swamp in Washington.
According to Burke, who was speaking to The Daily Wire, “public service debt forgiveness emphasizes government labor over private sector job and making the program more lucrative is simply one more way the White House is pushing tuition inflation in the future.”
The waiver, which the Biden team justified by referencing the COVID epidemic, caused so many gaps in the program’s rules that this $9 billion payout in eight months surpassed the $1.2 billion in loans that were forgiven over the previous five years put together, according to a Daily Wire analysis of Department of Education statistics.
Public school teachers’ unions support Biden and the closures of certain schools, which some claim caused a decline in student achievement. However, nonprofit workers, such as those at activist think tanks, are also eligible. They particularly endorse liberal lobbying organizations like Planned Parenthood and the Center for American Progress. Additionally included are wealthy colleges like Yale and Harvard.
If a person meets the requirements of the Loan Forgiveness Program, which historically included making timely payments throughout the first 10 years of employment with the government or a charity, they can be released from all of their student loan debts after 10 years of service.
The Biden administration declared a “modification to PSLF program regulations for a limited time due to the coronavirus national emergency” in Oct. 2021. It will remain in force until October 31. The modification amounted to removing numerous loan qualifying requirements from the rules.
This action differs from the more well-known proposal to forgive $10,000 in student loan debt for all borrowers who have incomes under $125,000. Some cited teachers as proof that universal forgiveness was required, but they failed to mention that teachers were already eligible for much greater forgiveness under the current government scheme.
According to the most current information supplied by the Department, the average total discharged under PSLF without having a waiver was around $97,000, while the average amount discharged via waivers was $61,000. Those who have qualifying jobs presently have $133 billion in loans, with an average loan size of $100,000. Much of that might be forgiven if the final sum of forgiveness is comparable to that of previous groups.
The PSLF program has authorized over $10 billion in debt relief for more than 175,000 borrowers in just 10 months, the Dept. of Education bragged on Tuesday. The Department made improvements to the program in October 2021, altering certain requirements to make it simpler for public officials who have federal student loans to get their obligations forgiven.