Revealed: Biden Student Loan Bailout Transfers $300 Billion From Working Class to Wealthy Supporters

President Joe Biden’s decree canceling debt owed by student loan holders isn’t just likely illegal.

A new study from the Wharton School of the University of Pennsylvania finds it will cost taxpayers between $300-$980 billion, which most of the benefits going to his own voters and the richest 60 percent of Americans.

“We estimate that forgiving federal college student loan debt will cost between $300 billion and $980 billion over the 10-year budget window, depending on program details,” Penn Wharton reported in an analysis released Aug. 23.

“About 70 percent of debt relief accrues to borrowers in the top 60 percent of the income distribution,” Penn Wharton reports.

Biden’s own voters, and voters Democrats need to turn out to maintain legislative majorities, are the biggest beneficiaries.

Exit polls of the 2020 presidential election reveal Biden won 55 percent of the vote among the 41 percent of voters with a college degree.

Biden’s vote share increased to 62 percent among those with advanced degrees, who are more likely to incur more loan debt but also largely earn higher salaries.

Republican lawmakers ripped Biden’s election-year robbery of the working class to buy off liberal voters, with some pointing out Biden likely broke the law with his order and it will likely only send college costs and inflation soaring higher.

“This move will not solve sky high college tuitions. This will pour fuel on the fire, increasing college prices and accelerating inflation. It will encourage more schools to increase costs and encourage more students to take out loans they cannot pay back in the hopes they’ll never have to do so,” said Senate Minority Leader Mitch McConnell.

“The President knows he does not have the legal authority to unilaterally cancel student loan debt, but is ignoring the law and bipartisan opposition in Congress,” McConnell added.

“The highest concentration of student loan debt is held by people in Washington, DC. This administration’s policy is to force blue collar workers and American families across the country to pay off the cost of a Washington bureaucrat’s college degree – it’s morally bankrupt,” said Texas Senator Ted Cruz.

“This announcement is a gut punch to every hard working single mother who worked double shifts in order to pay for her own education, every parent who borrowed against their home to send their kid to college, Americans who sacrificed to make responsible financial decisions, and our nation’s veterans and service members who risked their lives to earn the G.I. Bill.,” said Cruz.

“Let’s be clear – there is no way to ‘cancel’ student debt. This will cost every taxpayer an average of $2,100. Someone will pay the price for this policy and the price is likely to be felt by every American in the form of even higher inflation. This administration is exceeding its legal authority and illegally burdening hard-working Americans with debts they didn’t take on themselves,” Cruz concluded.

“President Biden’s student loan bailout scheme is a government handout to Americans making up to $250,000 annually and the higher education industrial complex. Taxpayers will foot the bill for this massive expenditure, including the vast majority of Americans who already paid off their loans, paid for tuition out of pocket, or do not even have post-secondary education nor enjoy the higher lifetime earnings associated with it,” said Pennsylvania Senator Pat Toomey.

“This decision will have wide-reaching, negative ramifications across America’s economy, including increasing already disastrous inflation, exacerbating America’s spending problems, and encouraging higher education institutions to raise the cost of going to college,” added Toomey.

“(T)here’s no such thing as a free lunch, and cancelling student debt amidst record high inflation will only throw fuel on the fire,” said Wyoming Senator Cynthia Lummis. “Any notion that there’s no cost to wiping out billions of dollars of debt is flat out wrong. According to the Penn Wharton Budget Model, this reckless decision will add an additional $300 billion to our national debt, thereby driving the cost of everyday goods even higher. This is incredibly unfair to the hardworking people of Wyoming who will be forced to foot the bill for the richest 40 percent of Americans who carry 60 percent of student loan debt.”

“Cancelling millions of dollars in student loan debt will make the pain of high prices even worse for Wyoming families. Today’s announcement is an insult to every American who played by the rules and worked hard to responsibly pay off their own debt,” said fellow Wyoming Senator John Barrasso. “This decision is also a boon for Biden’s wealthy supporters. Once again, the Biden administration is selling out working families to appease the far-left wing of the Democrat party.”

“The President can spin it however he wants with Pell window dressing, but at the end of the day his debt forgiveness scheme forces blue-collar workers to subsidize white-collar graduate students,” said Nebraska Senator Ben Sasse. “Instead of demanding accountability from an underperforming higher education sector that pushes so many young Americans into massive debt, the Administration’s unilateral plan baptizes a broken system. This deeply regressive action — which fails even to acknowledge that most debt is held by folks with graduate degrees — will do nothing to jumpstart the reform higher education desperately needs.”

“Only one third of Americans have a college degree, and the majority of higher education debt is held by the wealthiest among us. President Biden’s plan to cancel student debt will amount to a $300 billion tax burden that will be paid for by low and middle-class families in the midst of a recession,” said South Carolina Senator Tim Scott. “My mom is one of millions of Americans who didn’t go to college. She worked double shifts to keep the lights on and provide for my brother and me. Hardworking Americans like my mom and millions of others should not be responsible for this politically-motivated giveaway. It does nothing to solve the cost of higher education and will only pour more fuel on an overheated economy. Our country is in desperate need of better leadership that works for everyone.

The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.

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