November 22, 2022

Biden Adds Another $25+ Billion to Taxpayers’ Tab, as White House Extends Student Loan Repayment Moratorium

WASHINGTON, D.C. – House Budget Committee Republican Leader Jason Smith (MO-08) issued the following statement after it was reported that the Biden Administration will extend the COVID-era student loan repayment moratorium, which to-date has cost taxpayers more than $100 billion, until as late as June 2023 – at a potential cost to taxpayers of $25.8 billion – while the Administration’s broader student loan giveaway to the wealthy is being struck down in the courts:

“President Biden is talking out of both sides of his mouth, simultaneously claiming the pandemic is over by attempting to end the Title 42 immigration policy while also extending the pandemic-era student loan moratorium that has now cost taxpayers more than $100 billion. Using numbers from the Congressional Budget Office for how much the moratorium has already cost taxpayers, President Biden’s additional six-month extension of the student loan repayment moratorium could cost taxpayers another $25.8 billion after the Biden Administration explicitly said back in August there would be no further extensions. The President continues to use a permanent pandemic narrative to rob American taxpayers of more of their hard-earned money, push his welfare for the wealthy agenda, and further fuel the worst inflation crisis in forty years. Using the fact that the courts have struck down his broader student loan giveaway to the wealthy as an excuse for today’s decision is further proof that President Biden believes, one way or another, working families need to bail out the wealthiest of households in America.”

Key Facts:

  • $25.8 billion cost to taxpayers to extend the student loan repayment moratorium until June 2023 – would bring total cost of loan repayment moratorium since Biden took office to over $130 billion.
  • $400 billion cost to taxpayers from Biden’s plan to cancel student loan debt for families earning up to $250,000, according to Congressional Budget Office (CBO).
  • $450 billion cost to taxpayers from Biden’s plan to expand income-driven repayment plan.
  • $4.3 billion per month cost to U.S. Taxpayers from loan moratorium, according to CBO
  • Biden’s student loan cancellation plan is a giveaway to the wealthy.
    • 87% of adults without student loans will be forced to pay for the 13% of adults who chose to take on loans.
    • 70% of the benefit from canceling student loan debt will go to those in the top half of the income spectrum.
    • 56% of all student loan debt is owed by the 14.3% of individuals with advanced degrees.
  • President Biden has issued over 600 executive actions at a total cost to taxpayers of more than $1 trillion.

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