Biden’s Student Loan Forgiveness Will Cost Half a Trillion Dollars
according to a analyze The Responsible Federal Budget Committee said President Biden’s debt cancellation plan would cost “$440 billion to $600 billion over the next decade,” a move Republicans continued to warn would be fiscally irresponsible or unfair.
President Biden announced Wednesday that he plans to forgive some student loan debt for students earning less than $125,000 a year.
Under the program, those earning less than $125,000 a year will receive $20,000 in forgiveness if they receive Pell Grants to attend college, while those who do not receive $10,000, according to a chart shared by Biden. Forgiveness:
While some Democrats say the plan doesn’t go far enough, most see it as a step in the right direction, while Conservatives continue to warn this is another Irresponsible And unfair fiscal moves at the hands of Democrats.
“Why are Ohio mechanics paying student loans for an unemployed philosophy student in Los Angeles?” Rep. Jim Jordan (R-OH) asked Thursday:
Why are Ohio mechanics paying student loans for an unemployed philosophy major in Los Angeles?
— Rep. Jim Jordan (@Jim_Jordan) August 25, 2022
“When I was in medical school, I joined the military, not borrowed again. Many Americans made the same decision I did. Joe Biden’s student loans at a time when every service department was struggling to meet hiring goals Giveaways will make this problem worse,” Sen. Roger Marshall (R-KS) warned:
When I was in medical school, I joined the military instead of taking another loan. Many Americans made the same decision as I did. At a time when every service branch is struggling to meet hiring goals, Joe Biden’s student loan giveaway will make the problem worse.
— Dr. Roger Marshall (@RogerMarshallMD) August 25, 2022
Sen. Tom Cotton (R-AR) called the scheme a “shameless bribery,” while Rep. Li Zeldin (R-NY) described it as “a slap in the face of those who sacrificed their lives to repay their loans.” A slap in the face, finish college, go to a cheaper school or skip college entirely.”
“Magic cancellation of loans is bad, far-left policy, totally wrong,” he added:
Americans who paid off their student loans or never borrowed just took on $300 billion in new debt due to shameless bribes by Biden.
— Tom Cotton (@TomCottonAR) August 24, 2022
Mass cancellation of student debt feels good to some, but it’s a slap in the face for those who sacrificed their loan repayments, finished college, attended a cheaper school, or skipped college entirely. Magically canceling loans is bad, far-left policy and just plain wrong.
— Li Zeldin (@RepLeeZeldin) August 23, 2022
“That’s the Pres. What Biden really means by ‘cancelling’ student debt is: Americans who have paid off their debts, completed college jobs, attended vocational school, or chose not to go to school will pay off everyone else’s loans. On which planet So fair?” Sen. John F. Kennedy (R-LA) asked:
This is Pres. What Biden really means by “cancelling” student debt is this: Americans who have paid off their debt, finished college, attended vocational school or chose not to go to school will pay off other people’s loans.
On which planet is it fair?
– John Kennedy (@SenJohnKennedy) August 24, 2022
According to the Responsible Federal Budget Committee, Biden’s plan will cost Taxpayers about $5 trillion:
President Biden today Announce A slew of changes to student loans — including cancellations of up to $20,000 in loans for some borrowers — that will cost $440 billion and $600 billion Over the next ten years, the central estimate is approximately $500 billionCombined with today’s announcement, federal action on student loans has cost about $800 billion since the beginning of the COVID-19 pandemic. Of that, about $750 billion came from executive actions and regulatory reforms in the Biden administration.
According to the analysis, the broad cancellation aspect alone will cost between $330 billion and $390 billion. However, Biden’s other proposals, such as changes brought about through his new income-driven repayment plan, would cost $90 billion to $190 billion, according to the analysis.
Additionally, Biden continues to suspend student loan payments, now extended through the end of the year, which will add another $20 billion.
“We estimate that cancellations will eliminate $550 billion in federal student loan debt. However, we expect total outstanding federal student loan debt to recover to $1.6 trillion (current levels) within five years,” the committee concluded.
Biden hairy On Wednesday, he forced taxpayers to pay for higher education for others after facing questions about the fairness of his plan.
“Is it fair for people who don’t actually own multi-billion dollar businesses to see when those people get all their tax breaks? Is that fair?” Biden said, sidestepping the question. “What do you think?”
Sen. Elizabeth Warren (D-MA) — a champion of student loan debt cancellation — had a similar moment on the 2020 campaign trail, firing a father who questioned her comprehensive plan to forgive student loan debt.
“I just want to ask one question. My daughter is leaving school. I saved all my money. She doesn’t have any student loans. Will I get my money back?” the father asked.
“Of course not,” Warren replied. He urged:
So you’re paying for the people who didn’t save and those of us who did the right thing got screwed? My friend had so much fun, bought a car, and went on vacation. I save money. He earns more than me. I have worked double shifts.
“You’re laughing at me,” he continued. “Yeah, that’s exactly what you’re doing. We did the right thing, but we were screwed.”