by Martin Armstrong
Armstrong Economics
Short of joining Hamas, there is nothing Joe Biden will not do to secure the Gen Z vote. The latest plan will “forgive” $7.4 billion worth of student loans, which brings the total of loan cancelations under Biden to $153 billion. This new wave will benefit 277,000 borrowers/voters and cost the American public $559,000,000,000.
The original student loan forgiveness plan backfired, plain and simple. Payments were frozen in March 2020 under the CARES Act when countless people were out of work, and the program made sense. Millions of people simply stopped paying their loans as they believed Biden’s campaign promise to make all student loans vanish into thin air. By July 2023, over 7.5 million borrowers had defaulted on their student loan payments. Millions more were set to default in September 2023, when the COVID provisions were set to end. The Department of Education then decided to create an “on-ramp” period until September 2024 so that anyone who missed a payment would not face consequences.