By PHILIP WEGMANN, Washington Examiner
Homecoming is about to get more awkward. The federal government’s new student-debt program favors recent over older graduates, giving alumni one more thing to gripe about.
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Announced in November, the program will forgive at least $108 billion in student debt in the coming years according to a November GAO report. And as a result, older education debtors are getting hosed at the expense of the younger borrowers.
Here’s how it works: According to complex variables, The New York Times reports, the program sets monthly payments as a percentage of a debtor’s income and repayment plans from the standard 10 years up to 25 years. After that, the taxpayer shoulders the remaining balance.
Essentially, the Obama administration has picked winners and losers by adjusting amortization and handing out debt amnesty. That’s great news for millennials who racked up the national average of $30,000 in college debt and graduated with an unimpressive gender studies degree. It’s also wrong.
