There’s a lot of talk these days about “forgiving” student loan debt.
What student loan forgiveness means, in a nutshell, is that people who willingly borrowed money from the government want to be absolved of having to pay it back.
However, when student loans are “forgiven,” they don’t just vanish into thin air. Instead, they get passed along to American taxpayers, taxpayers who never agreed to take on the loans of people who don’t want to pay them back.
Democrats have come up with every excuse in the book to justify passing along student loan debt to American taxpayers. They claim it’s about racial equity, giving young people their financial futures, etc.
However, the unfairness of student loan “forgiveness” is as present as it’s ever been, according to The Federalist.
The Problem With Waiving People’s Student Loan Debts
A little over two years ago, one father confronted then-Democratic presidential candidate Elizabeth Warren over her promise to waive student loans if she got elected.
The father questioned Warren about whether or not folks who paid back their loans would get money from the government. To this end, Warren said no. Then, when the father asked how letting some folks off the hook for student loans (and not others) could be seen as fair, Warren didn’t respond.
The reality is this: the points made by this father back in January 2020 are as true today as they ever were. There are many people across the country who took out student loans and then responsibly paid them back.
Meanwhile, Democrats like Warren, Biden, and others want to reward folks who didn’t honor the agreement they made when they borrowed money in the first place. It’s certainly not fair and it will pass along financial burdens to people who never agreed to them.
The Inflation Factor
If student loan debt is “forgiven” and passed onto everyday taxpayers, this will absolutely have a negative impact on inflation. Once again, this is another example of the White House finding creative ways to spend more money when the federal government should be lowering spending.
Days ago, Deutsche Bank economists warned that America is very likely going to face a recession before 2024 gets here.
If the president gets his way with student loan forgiveness, inflation will rise even further and many people will sink deeper into poverty. People who took out student loans should pay them back accordingly.
No taxpayer should be on the hook for loan payments that they never agreed to.