Biden's student loan bailout boondoggle is on shaky legal footing

The Biden administration’s decision to transfer the debt of college graduates onto working Americans – euphemistically called loan "forgiveness" – brings with it a host of policy and legal questions.

The move has a staggering price tag: at least $570 billion. And that’s not including the continued "pause" on repayments in place through the end of the year, costing taxpayers $5 billion each month. The cost is exceeded only by the unfairness of the action, which punishes the millions of Americans who dutifully paid off their student loans or avoided taking on college debt altogether.

Then there are the inflationary effects, both on the overall economy and on college tuition in the future. Federal subsidies have increased 295% since the 1991-92 academic year, and colleges doubled tuition in real terms in response over the same time period. This massive bailout will drive college costs still higher if university administrators believe students can take out loans without consequence.