When asked in student loan relief was 'fair,' President Biden questioned if tax breaks for the wealthy were fair.
RELATED: Biden announces cancellation of student loan debt, extends freeze
A one-time maximum debt forgiveness of $10,000 per borrower will cost the U.S. government around $300 billion for borrowers with incomes less than $125,000, according to analysis published on Tuesday by Junlei Chen and Kent Smetters at the Penn Wharton Budget Model, based at the University of Pennsylvania. This cost increases to $330 billion if the program continues over the standard 10-year budget window.
Before the announcement, the Government Accountability Office estimated that alone, the payment pause since the start of the pandemic cost the government $102 billion. That amount included suspending all payments due, interest accrual and involuntary collections for loans in default from March 13, 2020, to Aug. 31, 2022.
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#Biden #Students #Tax
I graduated from college 4 years ago, but still owe tens of thousands in debt, I’ve lost 2 jobs during this pandemic (though I do have a job now), & rent for most places is almost what I pay in student loans a month so I can’t afford to move out on my own. I would love to be a more active member of the U.S. economy if I could afford to do so without so much substantial student loan debt. Even if I only had 10% of my student loans forgiven that’s still roughly 8 grand I don’t have to worry about having to try to pay on time every month anymore. So, whether or not I qualify for the loans President Biden forgiving, I support this decision since it will still help millions of college graduates & it will help the U.S. economy as a whole.
I’m sorry. Please realize that people who have very low paying jobs have to support this debt forgiveness. You chose to borrow money for college and stepping on the backs of the poor working class for your decisions.
@Alison Stewart then get gud
@indee105 ok boomer
How will it help the economy? You think that just giving away money to people in debt will fix our problem? In fact, I think it will increase the inflation going on already. I can empathize with your situation though, student debt can be difficult to deal with.
Saying that we shouldn’t forgive current college graduates student loan debt because it would be unfair for previous college graduates that have already paid off their student loan debt is like saying we shouldn’t find a cure for a disease people face today because people in the past died from that disease. Furthermore, how can a country that spends close to a trillion dollars on it’s military budget every year be against spending a fraction of that amount to forgive student loans just once?
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Thank you Uncle Joe!!!
I don’t see Justin Trudeau forgiving student debt for Canadians. Gee, why is that?
🥔🐑🥔
@Scooby The Canadian Standard of living is much higher than in the US. Indeed much/most of the developed world is better off. We have the most billionaires per capita though and as all GOP will tell you, that’s what counts.
ROFL, like the cancellation of student loan debt (almost all these people with student loans are already rich – they are just lazy and greedy too) isn’t a tax cut for the rich. We see what you’re doing and I don’t know how you could be a bigger hypocrite.
@Scooby It’s been widely reported that most of the welfare student load recipients used them for graduate degrees and most of them came from fairly we to do families (like AOC, for example). You may not think that making 125K a year makes you rich, BUT THE PEOPLE THAT WILL BE PAYING FOR THIS TAX CUT/WELFARE DO SEE IT AS BEING RICH. Seems fair to require the people that worked hard to pay their own way through college or have already paid their loans off or were never able to afford college in the first place should be punished by having to pay for the educations of those too lazy/greedy to take responsibility for their own actions, right? Grow up.
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From WaPo: The executive order will probably face legal opposition, said Lanae Erickson, who heads social policy at Third Way, a centrist Democratic think tank. She suspects the policy could be challenged on the same grounds as the West Virginia v. Environmental Protection Agency case, in which the Supreme Court ruled the federal government can’t act on policy with broad economic significance without clear congressional authorization. Last year, House Speaker Nancy Pelosi (D-Calif.) said at a news conference that Biden did not have the authority to cancel loans on his own.
2 completely different things
Expanding the logic…..
If forgiving part of a loan is good for the economy and helps many people….
Why stop there and not expand it to mortgages and car loans?
Surely home owners would find ways to stimulate the economy with such a windfall.
Funny, I started writing a comment about how education is more of a basic right and contingent for a good life, but cars and homes really are not that different.
You’ve unintentionally made a great point, it would be a good idea to alleviate these as well.
The kind of people who need to pay most of their lives in order to have a house or car, hardly luxuries, don’t just need the money but are in the most significant age group either for productivity (32-45 or for enterprise (24-31) and in the income bracket with the highest spending per income, which is very important for govt money subsidies.
Of course you would need to play with the parameters to hit the right people and not luxury cars or sprawling suburban installations and high value properties.
…and to regulate the supply so as not to create a bubble through perverse incentives.
But if a family bought an apartment thirteen years ago and has to live paycheck by paycheck paying it back to a shady hedge fund that got 2 mil. bail out money for free in 2008, I damn well know they shouldn’t have to.
Right away we come out the gate with the negatives when is a good time for student depth to go away maybe we should have these college kids live in there cars trying to work just to pay there student loan back. I ask all when is anything a good time.
Investor estate discharge
My credit card identifies as a student loan. Thank you mr president.