Biden Administration Threatens Massive Student Loan Default Rate Spikes

Even though he didn’t go as far as actually saying it, Joe Biden practically implied the left had nothing to do with the current state of the US economy. This comes much to the dismay of the American people that watched him crumble it to pieces with his own two hands.

In what seems to be yet another lame strategy aimed at winning over the average student, the Department of Education is blaming the entirety of the economic crisis and student loan delinquency that may follow on the COVID-19 pandemic that happened over two years ago.

Out of the fire, into the frying pan

The warning about the skyrocketing default rates came immediately after a Texas federal judge temporarily blocked the Biden administration’s student loan forgiveness plan.

US District Judge Mark Pittman, originally appointed to his position by former President Donald Trump, declared the forgiveness program as unlawful. He cited the 2002 HEROES act that gave the Department of Education the ability to give waivers to aid recipients.

Pittman found the DoE didn’t have congressional authorization to implement the $400 billion program; with the interpretation of the HEROES act, the legitimacy of Biden’s plan is up for question.

The ruling came in response to the jointly filed lawsuit that six Republican-led states came up with, arguing the Biden administration was making a major overstep with the plan. It would cause a number of ongoing financial harms to the loan providers.

Biden’s devious plan to save the Democrats

On Monday this week, the 8th Circuit court ruled that Missouri, one of the six states involved in the filing, had legal standing to do so. The state’s Higher Education Loan Authority, also known as MOHELA, would suffer a major blow to their finances.

This would cause the state’s ability to fund higher education to fall off, affecting public colleges and universities, all for the price of the loans that borrowers now refuse to pay back.

Despite the fact the court’s injunction was limited to only the six states involved in the filing, they later went back on the statement, adding it would be too impractical to implement it that way.

Many are already comparing the growing student loan defaults to the 2008 mortgage crisis. Even though it’s only being discussed now, this state of affairs has been a topic in dozens of circles, long before the COVID pandemic hit the US.

Hilariously enough, these worries were washed away by Biden’s promises to forgive an unknown amount of student loan debt, which the libs fell for, hook line, and sinker.

With the entirety of the student body supporting him, Biden’s lies helped keep Democrats afloat in what turned out to be their worst two years to date. He was willing to make YOU pay for it.This article appeared in The Record Daily and has been published here with permission.

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