News Analysis President Joe Biden’s ambitious plan to eliminate $10,000 of federal student debt, and $20,000 for those borrowers who received federal Pell Grants, will worsen the government’s roughly $30 trillion deficit while giving the incumbent party a justification to raise taxes steeply in the near future, economists who study the issue have told The Epoch Times.
Though often presented as an altruistic measure that will ease or wipe out the burden of indebtedness for those who had no choice but to borrow to fund their education and who now struggle with payments, the plan comes with significant moral hazard. It will foster reckless financial behavior and prove politically divisive as other categories of borrowers wonder why their own needs are considered secondary, the economists say….