April 17, 2024

Biden’s Latest Round of Student Loan ‘Forgiveness’ Will Cost $550 Billion

Do you know how Joe Biden likes to say that his economy is working from the middle class out?

Well, to quote Joe Biden, that is a bunch of “malarkey.”

Part of Joe Biden’s plan to help the middle class, according to him, are these student loan packages that he keeps putting through against the Supreme Court decision and without getting congressional approval. And guess who is paying for it all?

Who Is This For?

The median salary of Americans today is just shy of $60,000, or $120,000 for a couple.

However, when the package was examined, the households that will benefit the most from the loan forgiveness are homes making more than $312,000 per year, hardly what I would consider middle class or the average person.

The total cost of Biden’s forgiveness is now at $559 billion, with the latest round estimated to be about $84 billion.

When the latest round was announced, Education Secretary Miguel Cardona stated, “Today’s announcement shows — once again — that the Biden-Harris Administration is not letting up its efforts to give hardworking Americans some breathing room.”

So households making more than $300,000 per year need breathing room?

Ironically, it was the University of Pennsylvania’s Penn Wharton Budget Model that reported who will benefit the most from Biden's SAVE plan that will be passed on to the American taxpayer.

The study claimed, “President Biden recently announced five main provisions to provide student loan debt relief. Some of the provisions are already mostly covered by President Biden’s SAVE plan introduced in 2023. Some provisions, however, are more incremental to the SAVE plan, including one provision — the forgiveness of longer-term debt — that expands eligibility to higher-income households,” read a Thursday media release of the study’s key takeaways.

“We estimate that the New Plans will cost $84 billion in addition to the $475 billion that we estimated for President Biden’s SAVE plan, for a total cost of about $559 billion across both plans.

“While the New Plans, like the SAVE plan, contain provisions to relieve debt based on individual or household income, the New Plans will also relieve some longer-term student debt for about 750,000 households making over $312,000 in average household income.”

House Budget Committee chairman Rep. Jodey Arrington (R-TX) scorched Biden, stating, “In reality, his plan will shift the responsibility of paying for loans owed by high-income earners who freely incurred them onto the backs of all taxpayers, many of whom do not even have a college degree.”

This is about buying votes… nothing more.

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