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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Biden, you are the most disgusting individual I have ever seen in ANY public office!!! You need to step down and let someone more qualified run things.
Biden is a disgusting scum but in my opinion Pelosi has him beat. She is the epitome of scum.
Not my debt and I don’t want to pay for it.
I agree!!! Wish those with their millions would take up some of the slack the rest of us pay for! When taxes are raised upward it should be on the millionaires, not the little people!! A long time ago there weren’t that many millionaires, but now they well outnumber those of us that are not. So lets put the shoe on the other foot!!!!!!
So, this is the deal. BidenBucks cost of this student loan debt forgiveness scam will be the responsibility for the cost (like the rest of us) is guess who? Working class democrats that think that BidenBucks is a good guy? This favors the Liberal elites! They are really the true base of the democrat party.
biden does not have the constitutional authority to do this. Where is the supreme court? Separation of powers? Checks and balances?
That was my very first thought. Where the heck are all the Repubs in Congress? We don’t need one more word of “outrage” from these doughboys. We need them to be pissed-off and fighting mad enough to tell China Joe to go have sex with himself.
This is a slap in the face to everyone who did the responsible thing and PAID BACK their student loans. Right aoc?
This is a slap in the face to everyone who took the responsibility android back their student loans. Isn’t that right, aoc?
“After the FBI obtained the Hunter Biden laptop from the Wilmington, DE computer shop, these whistleblowers stated that local FBI leadership told employees, ‘you will not look at that Hunter Biden laptop’ and that the FBI is ‘not going to change the outcome of the election again,” the letter explained.
Did Joe get his dictatorial (by his own definition) reassignment of debt responsibility to those who did not contract it and his “Fascists” accusation of Conservatives in the same paragraph?
I thought that the Socialists were supposed to be FOR the working class; at least that is what they have always claimed.
Now this cretin serves us this turd sandwich. Democrat voters, are you FINALLY starting to figure out who ISN’T on your side?
My ex-wife and I went college back in the 70’s, graduated, got jobs and paid off every single penny of both student loans, even though it wasn’t easy some of the time with starting a family and buying our first home. But we did it because that’s what we both were taught was the right thing to do. Pay your debts to meet your responsibilities. This socialist transfer of wealth is one of the most insane, immoral, unfair, irresponsible, detrimental acts ever attempted by our Federal govt. They’re flat out stealing the hard earned money of honest citizens, to clearly buy liberal/Progressive votes in the midterms. 🤯🤬
Why cant colleges pay off loans then??
Or min say 50%
That is all he does, is help the wealthy and hurt the middle class. That is how Democrats have worked all the time. Using Covid as an emergency to pay off these loans when that was made only to the 911 people that died. That is really wrong, there is still people that are hurting from 911, why not help these people instead of people that took out loans and now don’t have to pay for them like everybody else does. More BULL!
joey slime-den.