Democrats are just giddy about Joe Biden’s plans to cancel more student loan debt. They see his polls and the fact that young voters are deserting him and they think this will help.
But who will really benefit from this? Not the people it’s intended to help.
Maya MacGuineas of the Committee for a Responsible Federal Budget (CRFB) recently spoke to FOX Business:
Biden canceling student debt would make inflation worse, experts warnThe inflation crisis in the U.S. will only worsen if President Biden cancels large swaths of student debt, experts warn.Maya MacGuineas, president of the Committee for a Responsible Federal Budget (CRFB), warned that student “debt cancellation may be an extremely appealing political talking point, but it is not good policy.””It is costly, inflationary, poorly targeted, and fails to address the root problems in our higher education financing system,” MacGuineas said in a statement Thursday. “Full debt cancellation would be a massive hand-out to rich doctors and lawyers, would worsen our inflation crisis, and would cost almost as much as the entire 2017 tax cuts.””Even partial debt cancellation would be costly, regressive, and inflationary,” she continued. “Forgiving $10,000 per person of debt would cost as much as universal pre-K or a full extension of the expanded ACA subsidies.”
Trump economic adviser Stephen Moore calls it “the biggest giveaway in American history.”
He writes in the Washington Examiner:
Canceling student loan debt would make college more expensiveIt might be the biggest giveaway in American history. President Joe Biden wants to cancel more than $1 trillion of outstanding student loan debt. Biden has already delayed for more than a year student loan repayment, and under his new rules, most delinquent and deadbeat borrowers would NEVER have to repay.What a deal for the people who never paid a dime back of the tuition money they owe to Uncle Sam.This plan makes suckers out of the millions who have felt honor-bound to pay off their debts. My wife spent years after graduating from college diligently writing checks to pay off the tens of thousands of dollars of loans. That’s the way it works when you borrow money and you’ve signed a commitment to pay the money back.Think about what would happen if this loan repayment policy were to be implemented. Who would ever pay off a student loan ever again after this blanket forgiveness program?
The New York Post Editorial Board calls it a bribe:
Biden’s bribe to the affluent: student loan forgivenessThe rich get richer, the old saying goes. And President Joe Biden wants to keep it that way.Case in point: The White House has announced a major move on student debt, canceling it for almost 40,000 borrowers and bringing 3.6 million closer to forgiveness. Yet student-debt relief mainly benefits the better-off.Yes, like much of the progressive agenda, this is packaged as “equity” — with a massive contingent of Democratic legislators calling for relief late last month as a way to “advance equity as our nation works to rebuild a stronger and more equitable economy.”But look at the numbers. A January paper from the left-leaning Brookings Institution showed just how unevenly student debt is distributed, with almost a third of all US student debt owed by the wealthiest 20% of households, while the bottom fifth of earners owe less than 10% of such debt.Students with advanced degrees — doctors, lawyers and the like — hold 40% of the debt.
Now is a good time to revisit this video from January of 2020 where a father confronts Elizabeth Warren on this issue and asks if he is going to get back the money he paid for his family’s student loans.
Democrats think this is going to help them. They’re wrong.
CLICK HERE FOR FULL VERSION OF THIS STORY