April 06, 2022

Smith Statement on Another Biden Administration Extension of Student Loan Payment Moratorium

WASHINGTON, D.C. – House Budget Committee Republican Leader Jason Smith (MO-08) released the following statement after the Biden Administration extended the student loan payment moratorium for the fourth time:

“Once again, Democrat COVID hypocrisy prevails. Despite claims that the American people can return to their normal life, President Biden is continuing to use a permanent pandemic narrative to keep COVID-era policies in place and side with the wealthy interests of his party over the American people.

“The student loan payment moratorium disproportionately benefits borrowers who obtain graduate degrees and high-income employment. President Biden claims his Administration is laser-focused on deficit reduction, while simultaneously tiptoeing towards a plan from the progressive wing of the Democrat party to forgive all federal student loans – a plan that would give a taxpayer-funded bailout to the wealthiest twenty percent of American households and add $1.6 trillion to our already massive national debt.

“The Congressional Budget Office estimates a $4.3 billion monthly price tag for every month this Administration allows borrowers to bypass payments without accruing interest. The nineteen months that President Biden has allowed this handout will cost taxpayers $82 billion. Today’s politically-motivated action by the Biden Administration will not only increase the debt owed by American families by upwards of $17 billion while driving up inflation, but also sets a dangerous precedent where wealthy Americans who go to college can expect to be bailed out by low-and middle-class working families.”

The Cost of Democrats’ Permanent Pandemic Student Loan Pause:

  • $4.3 billion per month cost to U.S. Taxpayers
  • $17 billion cost to taxpayers of this most recent 4-month extension
  • $82 billion total cost to taxpayers since Biden took office
  • Nearly 1/3 of student loan debt is held by the top 20% of earners
  • 56% of student debt is held by households with graduate degrees
  • 59% percent of households making $120,000 per year or more have student loan debt
  • 2% = the unemployment rate among college graduates with a bachelor’s degree
  • $1.6 trillion = total cost of full student loan forgiveness