Student Debt Wipeout Report – Straight From the White House
(UnitedVoice.com) – In 2020, liberal Democrats pressured then-Democratic presidential candidate Joe Biden to commit to eliminating student debt. At the time, Biden said the president didn’t have the authority to act on his own to cancel the $1.6 trillion in student loans held by 43 million Americans. Instead, he committed to considering forgiveness of $10,000.
On Monday, April 25, the president met with the Hispanic Congressional Caucus for 90 minutes. During that time, Biden shared his plans, and House members walked away believing he might absolve borrowers of much more than the $10,000 he previously talked about forgiving. Still, experts warn if Biden cancels student debt, it will worsen the 40-year record high inflation.
Is Biden Open to Forgiving Student Loan Debt?
Rep. Tony Cardenas (D-CA) was at the meeting with the president. He alleged the president is open to forgiving college debt regardless of whether someone attended a private or public school. Cardenas added the president didn’t mention a dollar amount or commit to wiping out all school loan debt.
When pressed by Cardenas on an amount, the California Democrat said the president smiled and said he would like what he’s going to do without stating any more on the matter. Apparently, there was no discussion about how future college students would finance their educations if the president unilaterally wipes out student debt just one time.
If Biden doesn’t unilaterally take action to eliminate all student loan debt and also reneges on his campaign promise to forgive only $10,000, what would that mean? Over the last few years, progressive Democrats have alleged Biden has the authority under the law to forgive up to $50,000 in debt. Could the president be warming up to their overtures?
Still, there are questions about why this is coming up now, just months ahead of the 2022 midterm elections. Since January 2021, Democrats have struggled to pass meaningful legislation, and the Democratic base is frustrated, at best, with their inability to pass Biden’s Build Back Better far-left agenda. So, is Biden planning to bribe millions of Americans ahead of the midterms?
Could Student Debt Forgiveness Add to Inflation Concerns?
On Thursday, Maya MacGuineas, president of the Committee for a Responsible Federal Government, told Fox News canceling student loan debt may be a very appealing political maneuver, but it’s a terrible policy. MacGuineas hit Democrats hard for the idea and said the money would flow back into the hands of the wealthy, who would spend it — causing more money to flow into the economy and increasing inflation even more.
MacGuineas also stated such a move would cost nearly as much as the 2017 tax cuts. She argued that even partial debt forgiveness would be costly and regressive and noted that $10,000 in student loan debt forgiveness would cost as much as universal pre-K. She said either Biden is serious about reducing deficits and getting inflation under control, or he’s not.
The Heritage Foundation told Fox News that canceling student loans would add 20% to inflation.
So, what do you think? Should President Biden cancel some or all student loan debt?
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