College Loan Deal: Costs Up to $980B, 70% Goes to Top 60% of Earners

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Karine Jean-Pierre falsely and bizarrely stated that the Biden college loan theft and debt program helps 90%of Americans making less than $75,000.

Wrong on both. First, the salary cutoff is $125,000, not 75,000. Second, Penn Wharton says the benefits go to the top 60% of earners and will cost about $980B over ten years.

According to a Penn Wharton study, forgiving student loan debt will cost between $300 billion and $980 billion over ten years, according to a new analysis. About 70 percent of debt relief accrues borrowers in the top 60 percent of the income distribution.

Between 69 and 73 percent of the debt forgiven accrues to households in the top 60 percent of the income distribution.

That doesn’t count the people who get $20,000 in forgiveness (theft).

Canceling debt would also add to the nation’s already ballooning national debt, which surged to a record-high $30 trillion last year.

Critics, including former Treasury Secretary Larry Summers, have argued that putting more money back into borrowers’ pockets could keep inflation painfully high in the coming months and years.

“I hope the Administration does not contribute to inflation macroeconomically by offering unreasonably generous student loan relief or micro economically by encouraging college tuition increases,” Summers, a Harvard University professor, wrote in a series of tweets this week.

Biden also announced on Wednesday that he intends to extend the federal student loan payment pause that was poised to expire at the end of August. The freeze — which also set the interest rate to 0% — began in March 2020 at the onset of the coronavirus pandemic.


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Paul
Paul
1 month ago

When it came time to deal with my student loans in 1982 I was paying a discounted 13.75%. I was as poor working as I was as a student. I remained in the same dump because it was all I could afford ,at times just.
I dont think I was stupid. I do know I had integrity and that gave me resolve. I say “had” because I am not certain where the “new” resolve points. Like vaccine definations that flex I wonder what new definations for integrity are bieing taught?

GuvGeek
GuvGeek
1 month ago

This attempt at buying votes will cost the American Taxpayer around 1.5 Trillion in under 3 years. People will rearrange their income for a year to take advantage of the Loan Bailout. This 1.5 Trillion hit will ensure high inflation (15% to 18% in real terms) for the next few years. That will devastate the Middle-class and put 10s of Millions on Government assistance unless the 2023 Congress acts quickly. Remember the Goal of the World Economic Forum Cult Members, “You will have nothing and like it.” This can only be accomplish if the World Population is reduced to just the people the WEF Elite need to maintain their lavish life styles. The WEF target date is 2030! You are little more than Cannon Fodder.

The Prisoner
The Prisoner
1 month ago

DC is the highest income area in the USA. Lots of those people have high paying, unproductive federal jobs with great benefits. These low initiative people have education loans for degrees which did not quality them for much but the work they have. They are not currently paying due to the waiver.

This is a payoff of DC and of course other unproductive & irresponsible people. Anyone supporting their child getting a payout is a socialist.