The Biden administration has abolished the federal student-loan program, at least if a “student-loan program” is one in which students borrow money and then eventually repay it. What’s being erected in its stead is a scheme that’s rife with moral hazard, seemingly designed to inflate college costs, and best described as a “student-fraud program”—in which students borrow money, promise to repay it, and then … don’t.
Biden’s loan-forgiveness shenanigans leapt into public consciousness when he tried to farcically read the 2003 HEROES Act to allow him to shovel $500 billion in loan “forgiveness” to his highly educated base and stick taxpayers with the tab. When that bit of unconstitutional maneuvering was struck down by the Supreme Court this summer, many observers moved on—imagining that the issue was resolved.