Biden’s student loan forgiveness plan has hit us, college president said:
About student loans, A Christian college president says President Joe Biden’s student loan forgiveness plan has been talked about. Colleges don’t accept student federal loan money, Yahoo reports.
Dr. Benjamin Markle, president of Idaho’s New St. Andrews College (NSA), said President Biden’s plan to cancel student loans to borrowers “hits colleges hard to get out of the federal loan program” and sets a precedent for reliance on higher education. President Joe Biden announced in August that his administration would cancel up to $20,000 in student loan debt for borrowers who received Pell grants and $10,000 for those who didn’t, but so far the plan has been stalled in federal court.
Markle said that it is better to allow our policy decisions to remain true to our mission than to be encumbered by strings attached to federal money, and one that can keep tuition-setting tied to the true price signals of the free market. While the federal government subsidizes the rest of American colleges and universities, this decision penalizes colleges that choose to carry their own weight.
Merkel referred to the partnership between universities and the federal government as “Big Ed” and equated it to businesses abusing power to get easy money, according to Yahoo. He said higher education institutions should divest themselves of receiving federal dollars, which are paid for by taxpayers, to have more freedom to act in a smarter way.
A federal judge in Texas ruled it an unconstitutional exercise of Congress’s legislative power. As a result, the Biden administration’s student loan forgiveness plan was later derailed. The Supreme Court agreed in December to hear two cases against the plan, including one from two plaintiffs who don’t qualify for amnesty and another from a coalition of states who argue the plan hurts their tax revenue.
Merkel said the plan should be rejected by the Supreme Court. Because according to Yahoo it will hit the nation hard on the taxpayers bill. He argued that the plan shifts student loan debt to taxpayers who didn’t go to college, teaches students that loans don’t have to be paid back, instills resentment toward higher education among taxpayers, and makes colleges and universities dependent on federal handouts.
According to Philip Swagel, director of the Congressional Budget Office, the student loan forgiveness plan will cost taxpayers more than $400 billion.