Patriot,

President Biden announced last week, he would be "forgiving"
student loan debt, something that he does not have the
constitutional authority to do.

And as I explain in my latest column, what Biden is really trying
to do is transfer the debt of higher-income Americans onto the
backs of lower-income Americans.

Not only that, but if allowed by the courts, the 300 to 500
billion dollar (or more!) price tag is going to exacerbate the
economic crisis that is already unraveling.

This "forgiveness" is no act of nobility; it's a travesty, and
people need to understand its true nature.

Please read my latest column below, and if you're moved to do so,
please pass it along to other patriots you know.

-Ron Paul


Biden's Student Debt Forgiveness Scheme is Unforgivable

Last week, President Biden announced he is creating a new program
forgiving 10,000 dollars of student loan debt for those with
income under 125,000 dollars a year. The amount rises to 20,000
dollars for borrowers who are Pell Grant recipients. Biden
flip-flopped on the issue as he previously denied that the
president has the authority to create a new student loan debt
forgiveness program. He now claims a 2003 law allowing the
Education Department to waive or modify provisions of federal
student financial assistance programs to help students affected
by war, other military operations, or a national emergency gives
him the authority. Biden says debt forgiveness is necessary
because of a continuing covid national emergency.

It seems odd that Biden would claim covid is a national emergency
when even the Centers for Disease Control (CDC) has stopped
recommending lockdowns, masks, and "social distancing." A broad
student loan forgiveness program also does not seem to fit the
purpose of this statute, which was to provide student loan
forgiveness for military personal, first responders, and others
engaged in fighting the "war on terror." Another basis offered
for the president having the power to cancel the loans is a
provision in the 1965 Higher Education Act that gives the
Education Department limited authority to modify or forgive
student loan debt. Given the Supreme Court's recent decision
narrowing the scope of a federal agency's ability to unilaterally
enact major new policies based on limited grants of authority, it
is a definite possibility that the courts will overturn the
student loan forgiveness program.

If the courts uphold the president's action, then as many of 43
million Americans could have significant amounts, or even all, of
their student debt forgiven. Of course, the debt does not go
away; instead, the "forgiven" debt will simply be added to the
national debt to be paid by the taxpayers either in the form of
direct taxes or the hidden inflation tax. Thus, these loans will
be paid off in part by taxpayers who did not go to college, paid
their own way through school, or have already paid off their
student loans. Since those with college degrees tend to earn more
over time than those without them, this program redistributes
wealth from lower to higher income Americans.

The student loan forgiveness will add between 300 and 500 billion
dollars to the national debt. This is a greater increase in debt
than the supposed "deficit reduction," which consists of tax
increase and expanding the IRS, contained in the phony Inflation
Reduction Act.

President Biden also announced he is extending the student loans
payment moratorium through the end of the year. "Temporary"
federal benefits are rarely, if ever, truly temporary. When the
time comes for the moratorium to expire, Congress will almost
certainly extend it in response to pressure from constituents who
benefit from the program, which includes colleges and
universities in Congress members' states and districts. The
expectation that more student loan debt will be forgiven will
also encourage more students to take out loans and will give
colleges a new incentive to raise their tuition. This will raise
the cost of the student loan and loan forgiveness programs.

Increasing debt caused by expanding student loans and loan
forgiveness will increase pressure on the Federal Reserve to keep
interest rates low, leading to continued price inflation and an
eventual major economic crisis. A step in avoiding this and
reversing course is convincing a critical mass of people to
understand that the welfare-warfare state and the fiat money
system that underlies it are impractical and immoral.

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