Democrats have found a brand new way to throw away our tax dollars. This time they are giving it away to students who don’t want to pay their own debts. No, instead the government is going to make you and me pay for it. And what better time to unveil this plan than in the middle of a recession?
Joe Biden’s decision to cancel student debt is making alot of people mad, even his old friends
Fox News reports, On Wednesday afternoon, Furman blasted President Biden’s handout of student loans as “inflationary,” “reckless,” and “government overreach.”
“As chairman of the president’s Council of Economic Advisers during the Obama-Biden administration, Furman tweeted that “pouring roughly half trillion dollars of gasoline on an inflationary fire already burning is reckless.” Going beyond one campaign promise ($10K of student loan relief) and breaking another (all proposals paid for) is even worse..”
He made his remarks shortly after Biden announced Wednesday an executive order to cancel $10,000 for each student loan borrower, $20,000 for Pell Grant recipients, and extend the repayment pause until December 31. Biden was asked by reporters if the bill was fair to students who had already paid off their student loans.
Biden said the handout is only available to borrowers earning less than $125,000 a year, or $250,000 for married couples. Undergraduate loan borrowers can cap repayment at 5% of monthly income.
An explanation of how the program will benefit lower- and middle-income graduates was released by the White House. The handout is also available to married couples earning $249,000, according to Furman.
In the White House fact sheet, he wrote, a construction worker makes $38K and a married nurse makes $77,000. But why should a policy provide up to $40,000 to a married couple making $249,000? Why should law and business school students be included in the policy?”
He then reiterated what many experts have been saying – that the handout will incentivize colleges to raise tuition prices and cause students to overborrow.
It would be more appropriate for Congress to pass legislation instead of Biden exerting unilateral power with his order, Furman said.
Other people are pointing out that Biden is doing this to buy votes ahead of the midterm elections.
Former Council of Economic Advisors Chairman Kevin Hassett argued this Tuesday on Fox News,
He’s exactly right and the biggest losers in this scenario aren’t the mega wealthy or corporations or universities like Biden claims. It’s going to be working and middle class Americans.