Biden’s Student Loan Forgiveness Plan Is Not What He Said It Was Going To Be
(RepublicanJournal.org) – In late August, President Biden announced his plans to have the US government forgive up to $20,000 in student debt for eligible Americans. After a couple of months of preparation, the program is finally accepting applicants and will do so until the end of 2023. But is the president’s forgiveness plan all it’s cracked up to be? Not likely.
Bait and Switch
The White House has led the public to believe Biden’s student loan forgiveness provides a much-needed break to Americans in the middle class. A dream come true for many. However, the program is a little too dreamy to be true. Instead, like a car salesman, the Biden administration has sold the public on one idea, only to completely change it after the fact.
The White House made it appear that in order for someone to qualify for the program they had to make no more than $125,000 a year. The threshold would keep high earners, like lawyers and doctors, from being eligible for debt forgiveness of up to $10,000 (or up to $20,000 for Pell Grant recipients).
After reviewing the application Americans will use to apply for the program, one will find that a person must have made less than $125,000 in either 2020 or 2021. In other words, someone could’ve made $124,999 in 2020 and more than the $125,000 threshold in 2021, or vice versa. So, the Biden administration’s claims that high earners wouldn’t be eligible for forgiveness are simply untrue and misleading.
What’s worse is that the Internal Revenue Service (IRS) won’t be requiring applicants to provide proof of their income. So again, high earners could lie about how much they made in 2020 or 2021 and become eligible for the program. The government did warn Americans looking to utilize this loophole to be wary that the IRS could investigate and ask for paperwork showing how much they’ve made.
How the Biden administration plans to punish those looking to stick it to the man and what enforcement agency it would use is a mystery as it has declared the 87,000 new IRS agents would be reserved for America’s richest. That is unless, of course, like the student loan forgiveness program, that was a lie as well.
Biden’s claim that America’s elite won’t see a dime of the money for the forgiveness plan is also inaccurate. The debt relief not only relies on an honor system, but it also doesn’t take into account sources of money that don’t qualify as income, such as funds from the Paycheck Protection Program and inheritances. A person could inherit billions of dollars and still be eligible for the loan forgiveness under Biden’s current plan.
So much for the program being for the middle class and not benefiting the rich.
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