Yesterday, President Biden announced a proposal that would forgive $10,000 in student loan debt to anyone earning under $125,000 a year.
The proposal would also forgive $20,000 in student loan debt to Pell Grant recipients.
Most Republicans immediately came out against the deal, saying it would worsen the country’s already bad inflation problem and that it was unfair to people who had already paid off their loans or chose not to attend college.
Surprisingly, a number of high-profile Democrats have announced their opposition to the proposal as well.
Maine Representative Jared Golden called the plan ‘out of touch’ and said it does not address the needs of average Americans.
Perhaps most shockingly, one of President Obama’s senior economic advisors, Jason Furman, was the harshest critic of the plan.
Student loan relief is not free. It would be paid for. Part of it would be paid for by the 87% of Americans who do not benefit but lose out from inflation. Part of it would be paid for by future spending cuts & tax increases—with uncertainty about who will bear those costs.
— Jason Furman (@jasonfurman) August 19, 2022
Furman said that the proposal would pour half a trillion dollars of gasoline on the ‘inflationary fire’ that already exists.
While Biden’s administration has made the argument that they have the right to unilaterally forgive student debt, Republicans have already announced that they will contest the proposal in court, saying that Biden is overstepping his Constitutional authority.
The Daily Mail Reports–
Sputterings of dissatisfaction among Democratic ranks over President Joe Biden’s plan to wipe out at least $10,000 in student loans has erupted into a full-blown civil war within the party, with some claiming the move is ‘out of touch’ with what Americans want.
The shocking price tag of the forgiveness plan is now estimated to cost taxpayers up to $600 billion – even for those who did not take out federal student loans or have already paid it off.
Thousands of families who saved up to pay for college educations are furious that their responsible financial planning will leave them without benefiting one cent from the relief plan and potentially paying roughly $2,000 in taxes to help pay for it.
Democrats, who are fearing a Republican bloodbath in the 2022 midterms, are turning against the president as the White House scrambles to explain how they will pay for the plan.
Education Secretary Miguel Cardona ducked twice when asked by CNN’s New Day how much the plan would cost and how it would be paid for.
