Rep. Gimenez rips Biden's plan to forgive $300 billion in student loan debt: 'Slap in the face'
Rep. Carlos Gimenez, R-Fla., responds to reports that President Biden will forgive $300 billion of student debt.
The Wall Street Journal’s editorial board eviscerated President Biden’s much-anticipated student loan handout as an "inflation expansion act" and "vote-buying at its most raw."
The editorial board published an editorial Wednesday headlined, "Student Loan Forgiveness Is an Inflation Expansion Act," that included a subhead noting the "mooted Biden plan would cost $300 billion and expose the Democrats’ anti-inflation posturing."
Americans are set to fund the expected nearly $300 billion deal to exonerate thousands in federal student loan debt and extend a repayment pause to next year.
STUDENT LOAN DEBT FORGIVENESS WON'T GIVE BIDEN, DEMS THE POLITICAL, PR PAYOFF THEY WANT: PERINO
The Wall Street Journal’s editorial board eviscerated President Biden’s much-anticipated student loan handout as an "inflation expansion act." (AP Photo/Susan Walsh)
"Wasn’t it only last week that Democrats were touting something called the Inflation Reduction Act? So much for that," the editorial board wrote. "The press is reporting everywhere that as early as Wednesday President Biden will announce he is canceling student debt and extending the moratorium on student-loan payments for several more months… this is an inflation expansion act."
According to the Penn Wharton Budget Model, a one-time maximum debt forgiveness of $10,000 for borrowers who make less than $125,000 will cost around $300 billion for taxpayers. The cost increases to around $330 billion if the program is continued over the standard 10-year window, according to the figures.
"That’s far more than the $102 billion the Inflation Reduction Act purportedly reduces the deficit over 10 years starting in 2027. About 70% of the loan relief would go to borrowers in the top 60% of income distribution," the WSJ editorial board wrote.
STUDENT LOAN CANCELLATION COULD COST $900B AND FAVOR TOP EARNERS, ANALYSIS SHOWS
The Wall Street Journal editorial board published an opinion piece Wednesday headlined, "Student Loan Forgiveness Is an Inflation Expansion Act," that included a subhead noting the "mooted Biden plan would cost $300 billion and expose the Democrats’ anti-inflation posturing." (Composite)
"As for the loan-payment moratorium, what began in March 2020 as pandemic emergency relief now rolls on and on. The moratorium so far is estimated to have cost some $115 billion. Another four-month extension could cost $15 billion to $20 billion more," the editorial board continued. "There’s more to say about loan forgiveness if Mr. Biden announces it—such as he lacks the legal authority without an act of Congress; it would benefit the affluent at the expense of those who don’t attend college; and it would benefit the spendthrift over the responsible who repaid their loans or decided to go to a school that costs less. It’s vote-buying at its most raw."
The board declared that it hopes Biden ultimately "thinks better" and nukes the plan at the last minute.
"But if he does forgive student debt, it will expose the hollowness of the Democrats’ anti-inflation posturing. The party these days is about spending ever more money without restraint (except for defense)," the editorial board wrote. "Inflation? Party on, mates."
According to a recent analysis from the Committee for a Responsible Federal Budget (CRFB), the $10,000 forgiveness plan would undermine the recently passed Inflation Reduction Act by consuming nearly 10 years of deficit reduction and wipe out disinflationary benefits.
Fox News’ Bradford Betz and the Associated Press contributed to this report.
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