A top official for the country’s federal student-loan program has resigned and is endorsing canceling most of the country’s outstanding student debt.
Calling the system “fundamentally broken,” A. Wayne Johnson – appointed in 2017 by Education Secretary Betsy DeVos, says that repayment trends suggest most student loan debt will never be repaid, according to the Wall Street Journal.
His solution? Forgive up to $50,000 for anyone with federal student-loan debt, which would amount to a bailout of approximately $925 billion. The plan would wipe out the debt of nearly 37 million borrowers. He would also advocate for a tax credit for up to $50,000 for people who have already repaid their debt.
Watch: As Walls Close in, Schiff’s Own Words Come Back to Haunt Him in Resurfaced Pardon Video He Wishes Didn’t Exist
What to know about the Freedom 250 UFC fight on the White House lawn
Left-Wing Mob, Violent Threats Force Erika Kirk to Miss TPUSA Event with JD Vance
Trump reveals he has multi-pick SCOTUS plan ready as retirement speculation heats up
WATCH: Ex-NATO chief draws red line as Trump fumes alliance abandoned US during Iran war
Jeanine Pirro accused of trying to ‘circumvent’ Jerome Powell investigation through unprompted Fed ‘tour’
Millions tap Trump tax cuts this filing season as refunds top $3,400
Trump-Tillis tiff deepens as president says he ‘quit,’ concedes Fed fight could doom new chair confirmation
Man with Joker-inspired rifle fires gun, runs into traffic near Trump golf course, deputies say
Bahamian authorities plan to suspend search for missing American woman amid US Coast Guard criminal probe
Trump Says China Is ‘Very Happy’ With What He’s Doing With the Strait of Hormuz and Has Agreed to Comply
Sanity Is Returning: Teens Identifying as ‘Nonbinary’ Has Crashed 70 Percent in 2 Years Among CA 16-Year-Olds
Federal judge hands Biden’s home state a loss in battle of ICE access to labor data
Watch: Biden Drags College Administrator Up to Podium to Compare Him to Obama
Vance anti-fraud task force suspends 447 hospices in Los Angeles over more than $600M in suspected fraud
Johnson, who has a doctorate in higher-education leadership and wrote his dissertation on student debt, was initially given the role of chief operating officer for the Office of Federal Student Aid, which oversees the country’s $1.5 trillion student-loan portfolio. After seven months, he transitioned to chief strategy and transformation officer, where he spearheaded a revamp of how the agency interacts with borrowers and companies that service the debt.
“We run through the process of putting this debt burden on somebody…but it rides on their credit files—it rides on their back—for decades,” he said, adding “The time has come for us to end and stop the insanity.”
Mr. Johnson said he arrived at his position to cancel student debt after he joined the administration and had a firsthand look at problems, including the high level of defaults and the difficulties of administering a program to erase loans for public-sector workers.
Mr. Johnson plans a long-shot bid for the Senate seat being vacated by Sen. Johnny Isakson (R., Ga.), who has announced he will retire Dec. 31 for health reasons. Georgia Gov. Brian Kemp, a Republican, is set to appoint an interim senator until a special election next year for the remaining two years of Mr. Isakson’s term. –Wall Street Journal
Johnson, who describes himself as a moderate Republican, has proposed a paying for the plan with a 1% tax on corporate earnings. The proposal would effectively reverse a late 2017 tax cut by the then-GOP controlled Congress.
Watch: As Walls Close in, Schiff’s Own Words Come Back to Haunt Him in Resurfaced Pardon Video He Wishes Didn’t Exist
What to know about the Freedom 250 UFC fight on the White House lawn
Left-Wing Mob, Violent Threats Force Erika Kirk to Miss TPUSA Event with JD Vance
Trump reveals he has multi-pick SCOTUS plan ready as retirement speculation heats up
WATCH: Ex-NATO chief draws red line as Trump fumes alliance abandoned US during Iran war
Jeanine Pirro accused of trying to ‘circumvent’ Jerome Powell investigation through unprompted Fed ‘tour’
Millions tap Trump tax cuts this filing season as refunds top $3,400
Trump-Tillis tiff deepens as president says he ‘quit,’ concedes Fed fight could doom new chair confirmation
Man with Joker-inspired rifle fires gun, runs into traffic near Trump golf course, deputies say
Bahamian authorities plan to suspend search for missing American woman amid US Coast Guard criminal probe
Trump Says China Is ‘Very Happy’ With What He’s Doing With the Strait of Hormuz and Has Agreed to Comply
Sanity Is Returning: Teens Identifying as ‘Nonbinary’ Has Crashed 70 Percent in 2 Years Among CA 16-Year-Olds
Federal judge hands Biden’s home state a loss in battle of ICE access to labor data
Watch: Biden Drags College Administrator Up to Podium to Compare Him to Obama
Vance anti-fraud task force suspends 447 hospices in Los Angeles over more than $600M in suspected fraud
Approximately 20% of all student debt, federal and private (not including debt from those still in school), is at least 90 days delinquent according to the report, citing New York Federal Reserve data.
Meanwhile, a September Wall Street Journal/NBC News poll reveals that 41% of Americans support “immediately canceling and forgiving all current student-loan debt.” Just 16% of Republicans agreed,while 36% of independents and 63% of Democrats said the same.
The poll showed that 64% of Americans support income-based repayment plans, which forgive some student debt only after borrowers have spent a number of years paying it down. The Obama administration promoted and President Trump has endorsed income-based repayment.
Mr. Johnson’s proposal would forgive more debt than the plan proposed by Democratic presidential contender Elizabeth Warren (D., Mass.), which calls for forgiving up to $50,000 in student debt for individual families, and scaling back the benefits for those earning above $100,000. Mr. Johnson said he would set no income cap for those receiving benefits. Presidential candidate Sen. Bernie Sanders (I., Vt.) has called for canceling all federal student debt. –Wall Street Journal
The 67-year-old Johnson has spent most of his career in financial services, and headed companies that refinanced private student loans earlier in the decade. He views his proposal as a way to get the government out of the student-loan business. As an alternative, he has proposed that students receive a $50,000 forgivable government voucher to cover four years of tuition at college or graduate school.
Story cited here.
