Here’s some of my early reflections today, on what Biden may likely do tomorrow, as rumors running he’ll announce something about student loan debt. Following are a few of my brief takes today on twitter:
#StudentDebt My best guess what Biden will do: extend student debt forbearance from August 31 current expiration to end of year 2022 (conveniently after midterm elections). Likely forbearance will end same time with -$10k debt forgiveness effective date. 1-1-23 for both?
#StudentDebt Why does US govt charge students loan rates of 5%-7.5% (fixed) while private banks charge 3.2% (fixed) and 1.3% (variable)? To get students to consolidate govt loans with banks. About 10% total student debt ($1.9T) held by banks. That’s why banks are opposed to -$10K
#StudentDebt 44 million students have loans. $10K reduction proposed by Biden ends debt for 12 million or so. Will apply only to students earning less than $125k income/yr. Cost will be about $32B/yr.($321B over 10 yrs) $32b/yr is less than half/yr Biden’s already given Ukraine
#StudentDebt How much student debt in US now? Officially, $1.7T. But that doesn’t include loans to parents to pay for student costs. Or other private bank loans taken out by students. Total is nearly $1.9T and rising.
#StudentDebt rumors flying Biden announces $10K cut tomorrow. But when will it take effect? 2023? Later? Will Biden also announce end of forbearance on debt payments? If so, will cut household spending while -$10K debt won’t increase it (contrary to what Larry Summers says)
As to the student loan issue, it is clear that it is empty political bait and neither Biden nor the Democratic leadership has any intention of following through. Since the onslaught of the policies called Neoliberalism the Rand Corporation reports that over $40 Trillion, yes Trillion, has been transferred from the lower 90% to the upper percentiles and that transfer has been consistent regardless of which part controls the White House and Congress. As to the serious energy problems of Europe, which means inflation of 17% and a serious decline in economic activity, I have no idea why ramping up to Green Energy is not even discussed. There are countless studies demonstrating that Green Energy is significantly cheaper than fossil fuels, up to a factor of 50% even before the current inflationary spiral. One complains about the US and its poor leadership, well welcome to the idiots running Europe.
Re comment, above: Ninety percent of the US population is 300 million people. If $40 trillion were distributed among them, each person would receive about $135,000. This calculation is for perspective only.
I note in the 22Aug podcast the revelation that B. Sanders and “the squad” have been snookered, once again, by Dem leadership, this time leading to the demise of the BBB bill … which associated $$$’s were then funneled to corporations! Well, who ELSE, really?
If Sanders and “the squad” were really as stupid as they seem (for Sanders include 2016 and 2020 presidential campaign) they need to be considered danger-ous to themselves and others and thus should be institutionalized (different from the congressional nuthouses)!
Clearly its a treacherous, cynical scheme the Dems run to maintain their utter contempt for their voters.
What ever happened to Sen Warren. Did she resign, expire, etc?