“The only way we’ll reform this in terms of costs is if families vote with their feet,” he said. “This actually encourages colleges to bump up the price of tuition.” He added that Biden’s action asks taxpayers to subsidize those with higher incomes.
Mark G. Smith, the founder and president of Vision Wealth Planning in Glen Allen, Va., called the forgiveness “terrible policy.”
“Obviously, it is good for borrowers in that their debt will be reduced. I have clients whose kids recently finished college with student loans and they will benefit. For them, it is good. For the country, it is bad,” said Smith, a veteran advisor and CPA.
The $300 billion estimated cost to American taxpayers, when “we are already $30 trillion in the hole and adding at least $1 trillion annually … is not sustainable,” said Smith. Even if it were, the government, and certainly not one person, should pick winners and losers. It is bad policy.”