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Fixing College Costs in the “Scheme” to Forgo Loans

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For the editor:

Over the past 30 years, enrollment in colleges and universities has increased by 300%. President Biden’s recent scheme to forgive $10,000 in student loans ($20,000 if you have a Pell Grant) for those earning less than $125,000 was done illegally without Congress. It’s a slap in the face to anyone who worked to pay off student loans or to parents who worked two or three jobs to pay for their children’s education.

It has nothing to do with blue collar working class people. For many, this will reduce student loan balances for families financially able to help cover tuition. The government does not have the legal right to transfer the debt incurred by private citizens onto the backs of all taxpayers. This is strictly a ploy to get midterm votes.

Like much of what the Biden administration has done ignoring the law, the student loan forgiveness will be challenged in court where it will be reversed. The problem is that it won’t happen before the November election and for those who believe they are going to receive $10,000, it will be a disappointment. Unfortunately, the White House doesn’t even know the true cost of student loan forgiveness. Their best estimate is $300 billion. At $300 billion, it will cost each of us who pay taxes $2,200. It could go well beyond that number. Estimates range between $500 billion and $1 trillion. It will do nothing to stop colleges and universities from raising costs. The only way to pay for this is to raise taxes.

What his administration should be doing is tackling the cost associated with overcharging for tuition and room and board, which is a direct cause of government funding and organized labor intervention. These institutions don’t have their skin in the game. The government is handing out billions of dollars in loans while colleges and universities capitalize on collecting that government money loaned to people who may or may not be able to afford it. allow with no obligation other than to dictate tuition and accommodation. Unionized unions benefit from their support for the government. In return, they can add thousands of administrative jobs and tenured teachers in an endless cycle.

Like all loans, money for education means that the borrower has contracted to pay it back plus interest. In my own experience, it took 13 years to pay off my undergraduate loans to a job that paid less than $10,000 a year. What this president is doing is immoral and will create future student debt problems. This creates no incentive for colleges and universities to cut costs, which would be far more lucrative for students than a $10,000 or $20,000 stipend. This will discourage students from working hard to get out of debt. For those who have cut, worked, saved and saved to repay their loans will now have to cover the cost of those who have not.

William R. Bellotti
Middlebury, Connecticut

Bellotti served as Assistant Commissioner of Labor under Governor John Rowland