Chairman Arrington Responds to Biden’s New Student Loan ‘Forgiveness’ Scheme
WASHINGTON, D.C. – Today, the Department of Education released its first set of draft rules for President Biden’s next attempt to cancel student loan debt. Under these plans, more than 30 million borrowers would see some, or all, of their student loans cancelled, with the cost being shifted onto taxpayers.
House Budget Committee Chairman Jodey Arrington (R-TX) released the following statement regarding the most recent Biden student loan bailout:
“Here we go again: President Biden is circumventing Congress and defying the Supreme Court as he continues to peddle reckless student loan bailouts.
Don’t let Democrats fool you. President Biden's actions don't 'cancel' any loans. Instead, they shift up to a $750 billion tax burden onto the shoulders of every American - many of whom do not even have a college degree - to pay the debts of high-income earners who freely incurred them.
While our country stares down an unprecedented debt crisis, one thing is clear: America cannot afford four more years of President Biden’s spending addiction.”
Background:
Today’s plans would cancel some, or all, student loan debt for 30 million borrowers. This is on top of the $153 billion in student debt President Biden has already canceled for 4.3 million borrowers.
Though details and a Congressional Budget Office (CBO) score are still forthcoming, cost estimates from Penn Wharton Budget Model (PWBM) and the Committee for a Responsible Federal Budget (CRFB) indicate the plan could cost taxpayers anywhere from $84 billion to $750 billion.
Both PWBM’s and CRFB’s report highlight what so-many Americans already know: Biden’s student loan schemes overwhelmingly favor wealthy Americans.
- According to PWBM, “about 750,000 households making over $312,000 in average household income” would be eligible for loan cancellation.
- CRFB states that these policies would “put upward pressure on inflation and interest rates by supporting stronger demand, and much of the benefits would accrue to high-income and highly educated Americans.”
The Bottom Line:
In just three years, the Biden Administration has attempted to spend an unprecedented $1 trillion on loan “forgiveness” in a clear circumvention of Congress. This includes:
- August 2022 - President Biden’s unconstitutional student loan bailout, which the CBO projected would have cost taxpayers more than $330 billion.
- November 2022 - The President’s six unwarranted extensions of the pandemic student loan repayment pause, which increased the deficit by $165 billion.
- June 2023 - The Administration’s so-called “SAVE Plan,” which could cost taxpayers as much as $558 billion over the next decade.
- April 2024 - Today’s latest draft rules, which according to CRFB analysis could total $750 billion.
President Biden’s FY 2025 budget proposal doubles down on these student loan bailouts, requesting $290.3 billion to “reduce the cost of and expand access to postsecondary education, and training,” including $90 billion for “free community college.”
In stark contrast, House Budget Committee’s FY 2025 “Reverse the Curse” Budget Resolution protects taxpayer dollars by ending current and future student loan bailouts.
Click HERE for the Chairman Arrington’s statement when President Biden announced this student loan scheme.
Click HERE to read about FAFSA Fumbles.
Click HERE to read about PWBM’s analysis of President Biden’s student loan bailouts.
