Students Take Joe’s 4Give in Rear End

Amazing how fast Biden’s student loan forgiveness scheme was scaled back as soon as six states sued on grounds it would cost their taxpayers in the (rear) end. Implicit admission it was illegal from get go?

“That’s the way it looks,” argued the WSJ’s e editorial board, “after [the Administration’s] move late last week to change its forgiveness scheme by restricting eligibility for some 800,000 borrowers.” The second-thoughts were triggered by several states’ allegations in federal court that there will be an inevitable en masse stampede of loans originated with private lenders BEFORE Democrats nationalized the student loan market in 2010 and into the resulting federal Direct Loan Program. To make a long story short, getting into the DLP is a pre-condition to enjoying Joe’s proposed largess. And, the likely sudden conversion from the old school loans program into the new would be at the expense of at least some states that had overseen the student loan market before said hostile takeover by the feds and had benefited from interest income on student-loan securities they owned. Said the WSJ, “about $214 billion [of those older loans] are outstanding, most of which are traded on the private market.”

Concluded the WSJ: “The Administration clearly believes the states’ … claims are compelling” or else why suddenly restrict access to old school loan forgiveness as it has? Is Team Biden hoping to “moot” the states’ case as it proceeds to court in order to salvage the rest of the mid-term election scheme?

Davd Soul