Posted on 08/24/2022 6:18:56 AM PDT by Red Badger
Biden is reportedly planning to cancel $10,000 in student loan debt per person for individuals making less than $125,000 per year.
Joe Biden is reportedly planning to cancel $10,000 in student loan debt per person for individuals making less than $125,000 per year, according to reports which say the announcement will be made on Wednesday.
Various outlets have reported on the potential move, with CNN claiming that the Biden administration is “leaning towards” the $10,000 forgiveness amount, and The Hill claiming the same along with an additional pause in student loan payments for roughly four months.
Bloomberg also reported that the White House is planning to make the announcement on loan forgiveness on Wednesday, but did not confirm the amount.
On Sunday, Biden administration Education Secretary Miguel Cardona stated that an announcement on student loan forgiveness would come “within the next week or so” before to the most recent pause on payments is set to end on August 31.
“From day one, we’ve been really focused on making sure we’re protecting our students and our borrowers…We’ve been talking daily about this, and I can tell you the American people will hear within the next week or so from the President and the Department of Education on what we’re going to be doing around that,” Cardona told NBC anchor Chuck Todd.
Should the administration go through with the reported forgiveness of $10,000 per person making under $125,000 annually, it would cost close to $300 billion, according to analysis by the Penn Wharton Budget Model released on Tuesday.
“The President will have more to say on this before August 31. As a reminder, no one with a federally held loan has had to pay a single dime in student loans since President Biden took office, and this Administration has already cancelled about $32 billion in debt for more than 1.6 million Americans — more than any Administration in history,” an unnamed White House official told CNN.
“President Biden should #CancelStudentDebt to: help narrow the racial wealth gap among borrowers, provide relief to the 40% of borrowers who never got to finish their degree, and give working families the chance to buy their first home or save for retirement. It’s the right thing,” tweeted Senator Elizabeth Warren (D-MA) on Tuesday.
Some conservatives have argued that the move is risky, unfair to taxpayers, and may worsen the inflation crisis.
National Review writer Charles Cooke described the plan as “illegal” and “indefensible in every conceivable way.”
“It’s immoral. It’s arbitrary. It makes inflation, the biggest issue we currently face, worse,” wrote Cooke. “It sends other people’s cash to the group with the lowest unemployment rate and the brightest prospects.”
It doesn't.
Even some Democrats are saying this is unconstitutional....................
This is all about the Dims trying to keep the millennials from turning against them in droves. Imagine how much they’d hate the Dims spending the rest of their lives paying off the debt for their worthless indoctrination brainwashing them to be good Dim voters.
Buying votes.
Took me fourteen years to pay back my student loans.
Where’s my check?
That is exactly why obumber federalized student loans.
This is taxation w/o representation as these costs are passed along with no votes in Congress.
What about all the new little freshmen who will take out new loans this year and in the future. Will they get forgiven also.
I suspect it’s gonna piss off more people than it makes happy.
Imagine having paid off your student loans last year only to see this......or like me and millions of others, never having gone to college....now I’m on the hook for some lazy ass college student that’s living in their grandparents basement choking on a bong student loan debt.
I’m waiting for the “students” to say, “But my student debt is $100,000! Only a measly $10,000 relief? Wah!”
The requirement should be that they have an actual degree from an accredited school and that they graduated.
I think the powers that be are doing everything they can to push people into reacting so they can PUSH BACK.
I agree with you that it’ll piss off more than it’ll make happy. But IMHO the Dims are scared of their loyal millennial voter base getting unhappy with their Dim indoctrination.
“Where’s my check?”
You’ve heard of being “grandfathered in” right?......well your “grandfathered OUT”.
OK ... accounting question: to pay off a student loan that is underwritten by the Feds, the Fed accountants issue a credit to the loan account for the balance due thereby reducing the balance to zero. Now good accounting practices require that a charge (debit) be posted to some other Fed account. I wonder which account is hit with the charge ... the general fund? the IRS? Whoever it is is now going to have less money than they had yesterday. That can’t sit well with some department managers.
Agreed.
From what I understand they’re targeting loans that were for -for profit schools, such as ITT that the government destroyed.
Bet they will owe tax on that 10k. That will have a long term credit impact too. Those who think this will free them up to get a mortgage or car loan may very well be in for a big surprise.
The 125k income limit is way too high. The avr salary in the US is between 50 to 58k. Wasn’t the stimulus income limit 75k?
Biden already did that.
Correct.
This will add $300 Billion to the Fed debt and does not sit well with either party in Congress..............
Will this be family income or individual income? What if your spouse makes a million dollars a year?
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