Biden’s Student Loan Cancellation Dreams Are A Nightmare For Average Americans, Experts Say

CEI’s Ryan Young is cited in the Daily Caller on student loan cancellation:

“Parents are already willing to save and sacrifice in order to afford their children’s college tuition,” Ryan Young, senior economist at the Competitive Enterprise Institute, told the DCNF. “Student loans won’t change that, and universities know it. They will raise their prices by roughly the amount of the student loan subsidies, and families will continue to save and sacrifice and pay about the same amount they do now.”

The Department of Education spent nearly $200 billion in fiscal year 2023 toward its office of federal student aid, far higher than any other component of the agency. The Office of Elementary and Secondary Education was second, receiving only $27.75 billion.

“Student loan delinquency rates will increase significantly because of the many borrowers who did not prepare well for the resumption of student loans,” Kissel told the DCNF. “We may not have good access to those numbers for a while because the department is failing to report them to credit bureaus, but those numbers will go up.”

Delinquency transition rates jumped in every category except student loans in the third quarter of 2023 as more Americans turn to debt to shore up their struggling finances. Many Americans have resorted to credit card debt to make ends meet, which exceeded $1 trillion for the first time ever in 2023.

“The more student loan subsidies, the stronger this effect will be,” Young told the DCNF. “That’s great for universities that want to build aquatic centers and hire more administrators. But it won’t save families any money. Families will in fact pay more through the higher taxes needed to pay for student loan forgiveness.”

Read the full article on Daily Caller.