Another Extension of the Student-Loan-Repayment Freeze Is Bad Policy

US
President Joe Biden announces new actions against Russia for its war in Ukraine at the White House in Washington, D.C., March 8, 2022. (Kevin Lamarque/Reuters)
But for Joe Biden, it might be good politics.




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F
or the last two years, federal student-loan borrowers have been excused, without penalty, from repaying their debts. In the meantime, taxpayers, who financed those debts, were left holding the bag while many high-earning borrowers rode the gravy train. Repayment was initially put on pause by the CARES Act at the beginning of the Covid-19 pandemic, before we fully understood what the pandemic’s economic impact would be. But with the economic fallout from Covid largely behind us, this moratorium on student-loan repayment should now be coming to an end.

Unfortunately, it seems that the Biden administration may have other plans.

Loan repayment was first …

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