Biden’s Student Loan Forgiveness Hail Mary

CLAY: I’m not sure that we’ve ever been in a situation more where Republicans are winning. I’m gonna use a sports analogy for you. Winning big. It’s like 42-3 right now as we get ready for the midterms. What we gotta avoid happening here is getting Democrats… I think you just gotta run out the clock. My concern is Democrats are trying all these sorts of Hail Marys now.

The potential revocation of all the student loan obligation, trying to raise taxes, corporate tax rates, still trying to get through some of this Build Back Better. There’s a lot of Republicans who listen to this show in the Senate and in the House and their staffs. You guys have to delay, delay, delay and not allow Biden to do any worse damage to the country.

Because, Buck, by the time we get to Memorial Day, it’s midterm season. People are taking off for the summer; it’s gonna be really hard to pass things. We’re almost to May. Hopefully all the damage that Biden has done can be curtailed in some way by not allowing him to do more. And then you know in ’23 and ’24 without control of Congress, they’re not gonna be able to get anything done so I’m concerned about the Hail Mary moves right now in the Democratic Party.

BUCK: Well, that’s clearly what is pushing… The notion of the Hail Mary for political reasons is why the Biden administration is thinking about a dramatically expanded version of student loan… They call it forgiveness. It’s just transferring the debt to the public. The money has already been spent. So the language we use here shouldn’t reflect that.

It’s not just like you wave a hand like, “Oh, yeah, that never happened.” That is obviously not the case. And then beyond that I think if we’re gonna talk about student loan… There’s so much here structurally that should be taken seriously. One is schools are too expensive and the reason they’re too expensive is because they’ve been able to count on the federal government to write the checks.

To allow people to go with no collateral, no actual assessment of whether this is a good risk for any individual to take out these loans. You went to law school. I got into business schools, Clay, and I didn’t go ’cause I was gonna have take out massive loans. Instead, I went to work for Glenn Beck. It worked out well for me in the end.

The point is I looked at it as, “I don’t want to be $200,000 in the hole for student loans, because they’re non-dischargeable, and that’s the other part of this trying to get some attention here. Why is it bankruptcy…? Bankruptcy is in the Constitution, isn’t it? Bankruptcy is something that goes back to English common law for sure.

And you have a non-dischargeable debt for your student loans? Why? Because if it was dischargeable, then we’d have to actually look at the system and people would say, “Well, where is this money coming from, and where is it going, and what’s gonna happen to it?”

CLAY: Yeah. And I’m glad you brought that up, because there needs to be some analysis of the amount of money that kids are taking out based on the major. And a huge percentage of student loan debt actually doesn’t even come from undergrad. It comes from grad school. So for instance, I’ll give you an example.

You mentioned the amount of money you have to take out. In order to become a lawyer most people end up owing six figures or more, but the positive is you come out and you make over six figures as a young lawyer, by and large, if you do a decent job. There’s a lot of people, Buck, taking out over $100,000 in loans, much of it backed by the federal government, to come out and be, for instance, a social worker, and you make $40,000 a year.

Now, I’m not trying to knock the job of a social worker. I’m just saying there’s no analysis of whether this is good debt or bad debt, right? You can’t go buy a brand-new Mercedes if you don’t have the income to reflect that you can afford that car. Why are we allowing people to take out hundreds of thousands of dollars in loans when they’re going to have jobs that never pay enough to pay back that cost? That seems to me to be a fundamental fraud that’s being perpetrated by many of these schools.

BUCK: It’s also a payoff to the Democrat voter out there. I mean, a lot of the people that are pushing for this are Democrats – politically, they’re Democrats. And you have to wonder why just this category of debt? By the way, credit card companies also — credit cards largely — nondischargeable.

What the heck is the point of bankruptcy laws? By the way, Article I, Section 8, clause 4 authorizes Congress to enact uniform laws on the subject of bankruptcies throughout the United States. Bankruptcy is a very important concept, and you hear it and it sounds scary. It actually exists to free people —

CLAY: That’s right.

BUCK: — from the chains of debt servitude for their whole lifetime. So notice that you really look at this, there should be a whole conversation: Why are these categories of debt that exist that are non-dischargeable in bankruptcy? That should be anathema. That shouldn’t exist et al. But Biden just wants to use the money guns. Your other point, Clay, what are they gonna try to do last minute? Everything they can. Buy people off, lie, cheat, steal. You name it. Anything to stay in power.

CLAY: It’s Hail Mary time, and Republicans just have to run out the clock. That’s all they need to do to avoid disaster with more Biden insanity.