According to The Committee for a Responsible Federal Budget, the Biden student loan redistribution of wealth package is roughly $500B, not $300B.
President Biden’s federal student loan forgiveness plan will cost U.S. taxpayers between $440 billion and $600 billion over the next ten years. The CRFB used $500B as a median.
More than 43 million Americans have $1.6 trillion+ in federal student debt. According to the latest federal data, nearly one-third of those owe less than $10,000, and more than half owe less than $20,000.
It is a serious problem, but this move makes it worse. The easy money encourages colleges and universities to keep pushing students to obtain loans so they can raise tuition. It also transfers the debt burden to innocent taxpayers who never borrowed it.
Critics have argued Biden’s program will contribute to already record-high inflation levels in the U.S.
Senate Minority Leader Mitch McConnell argued the program is “yet another way to make inflation even worse, reward far-left activists, and achieve nothing for millions of working American families who can barely tread water.”
HE’S A DICTATOR
“I don’t think I have the authority to do it by signing the pen,” Biden said in February, per Kudlow.
But he rules by fiat, and no one stops him. He is setting a precedent for dictatorial leadership. It’s one fiat after another. The media accused Donald Trump of doing what this president is doing.
“People think the President of the United States has the power for debt forgiveness. He does not. He can postpone and delay, but he does not have that power. That has to be an act of Congress,” House Speaker Nancy Pelosi said in 2021, Larry Kudlow reported.
Kudlow also said, “More or less, 70% of predominantly middle-class taxpayers are going to be bailing out something like 30% of those best well off. Oh, and that’s right, it does sound like an election year handout, doesn’t it? Think of this.
“If this whole student bailout business costs $300 billion over ten years, as some are estimating, then that wipes out Schumer-Manchin’s deficit reduction. Still, I never bought into their deficit reduction anyway.
“The Education Department does not remotely have the expertise to handle a $1.6 trillion student loan portfolio. It’s a regulatory and policy agency. It’s not a bank. Shades of the EPA running a $27 billion national “climate bank.”
“It was President Obama who ended private lending by banks and others for student loans and moved the whole sorry story into the federal government, into the Education Department. We in the Trump administration wanted to pull out, including education secretary Betsy DeVos. Get it out of there because those educrats don’t know anything about banking and nowadays spend most of their time on critical race theory.” Watch: