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.
Biden Press Secretary Karine Jean-Pierre bizarrely & incorrectly claims Biden’s student loan bailout is “going to help 90%, 90%, of Americans that is making less than $75,000.”
The Penn Wharton Budget Model says close to 70% of the benefits are going to the top 60% of earners. pic.twitter.com/f1SSCKqqq3
— RNC Research (@RNCResearch) August 26, 2022
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.