Exposing Biden’s Proposed Changes to Income-Based Repayment of Student Loans — Worse Than Debt Forgiveness?

President Joe Biden announced a student loan forgiveness plan that would cancel up to $20,000 of debt for people making under $100,000.

Will the people who paid off their student loans get a refund? Nope.

Nothing is free, of course, and taxpayers would foot the bill in this bailout. Individuals signed contracts to borrow money, with a promise to pay back the money. The executive branch does not have the power to nullify contracts.

Star Parker, founder and president of the Center for Urban Renewal and Education, appeared on Straight Arrow News to talk about the cost of this debt cancellation scheme. She calls the plan terrible and says it creates “foolish incentives for everyone involved.” Why would parents save money for their kids’ college educations when they can use the money to buy that Mercedes?

One aspect of the plan that has flown under the radar is the proposed change to the Income-Driven Repayment plan. Is this scheme more dangerous than the debt forgiveness plan? Watch the full video at Straight Arrow News to hear what Star has to say.