President Biden’s student loan giveaway is already creating confusion and now experts say it would enable scammers to seize on the complicated nature of the unprecedented announcement to target unsuspecting borrowers.
President Biden’s student loan giveaway exposes borrowers to harmful scams.
- Numerous organizations and agencies, including the Federal Trade Commission and Better Business Bureau, recently issued warnings about the threat of scammers easily taking advantage of President Biden’s plan.
- As the New York Times reports:
“In fact, nefarious callers have had ample time to prepare, since talk of student loan forgiveness has been percolating since Mr. Biden proposed it during the 2020 presidential campaign.”
“Scam callers use the existence of legitimate, but often confusing, federal programs that can reduce monthly payments or forgive student debt, like the public service loan forgiveness option, to trick borrowers into paying illegal fees or sharing sensitive information.”
Given that the Biden Administration is ignoring $400 billion in unemployment fraud, they will likely ignore student loan scams and fraud.
- Less than $1 billion has been recaptured of the total taxpayer dollars lost in improper UI payments over the course of the pandemic.
- In May 2022, the Washington Post reported that an estimated $163 billion was siphoned away by fraudsters, and that if the government’s best estimate is accurate, only 2.4 percent of wrongful payments have been recovered.
The Biden Administration is busy pursuing a complicated and dangerous plan instead of focusing on helping working Americans.
- Rather than prioritizing inflation raging for Americans and Main Street businesses, President Biden’s student loan giveaway puts the economy on the back burner, while enabling fraudsters to victimize borrowers.
- More than half of all Americans report spending up to $500 more per month on groceries.
- For a majority of low-income households, rising prices have become a source of “major financial stress” as inflation has wiped out 26 million low-income households’ savings since President Biden took office.
Student loan forgiveness is a giveaway to highly educated college grads.
- As the Biden Administration has blue-collar taxpayers bail out people earning six figures with multiple degrees, at least 59 percent of Americans worry the plan will worsen inflation, according to a new CNBC poll.
President Biden’s student loan giveaway is a massive transfer of wealth.
- Even former Obama-Biden top economic advisor Larry Summers issued a warning that Biden’s mass student loan giveaway will worsen inflation. “Student loan relief is not free. It would be paid for. Part of it would be paid for by the 87 percent of Americans who do not benefit but lose out from inflation,” Summer said.”
Pursuing mass student loan forgiveness ignores the real problems most Americans are facing.
- Forgiving $10,000 of student loan debt per person does nothing to bring down inflation, and will only exacerbate the rising cost of higher education rather than address it.
- Student loan debt forgiveness will create the expectation of future debt forgiveness and will incentivize students to borrow more not less.