President Joe Biden refused to answer if forgiving $10,000 in student debt per borrower is fair for Americans who saved, worked through while getting their education, or paid off their loans after school.
Instead, Biden pivoted and questioned whether it was fair that multi-billion-dollar companies received breaks when Republicans were in power.
Fox News' Peter Doocy asked Biden, "Is it unfair to people who paid their student loans or chose not to take out loans?"
Biden retorted, "Is it fair to people who, in fact, do not own multibillion-dollar businesses, to see one of these guys give them all the tax breaks? Is that fair? What do you think?"
Another reporter then asked Biden, "What about people who paid their loans though, struggled to pay their loans and now others don’t have to?"
Biden refused to answer and walked out of the room.
Student debt forgiveness has been a demand of progressive Democrats for years. The Biden administration had been considering the move for months before deciding that $10,000 per borrower was the appropriate amount. Many progressives celebrated the decision as a step toward full loan forgiveness.
Biden also extended the pause on federal student loan repayment until January 2023 and capped repayment at 5 percent of monthly income for undergraduate loans.
During the press conference with Education Secretary Miguel Cardona, Biden insisted that inflation would not be impacted while announcing that he was canceling $10,000 in debt for individuals making less than $125,000 annually and joint filers making less than $250,000 and those who received Pell Grants will be eligible for $20,000 in relief under the same stipulations.
However, canceling $10,000 per borrower would cost $298 billion in 2022 and a total of $329 billion by 2031 if the policy continued to be renewed every year, according to an analysis from the University of Pennsylvania’s Wharton School.
Additionally, less than 32 percent of the funding would benefit Americans in the two lowest income categories but 42 percent would benefit those earning over $82,400 per year.
According to the Brookings Institution, one-third of student debt is owed by the wealthiest 20 percent of American households, while only 8 percent is owed by the bottom 20 percent.
Larry Summers, a former economic adviser for President Barack Obama, warned the Biden administration against 'unreasonably generous' student loan relief and predicted it would raise inflation further. Summers said over the weekend: 'I hope the Administration does not contribute to inflation macroeconomically by offering unreasonably generous student loan relief or micro economically by encouraging college tuition increases.'
The former chairman of Obama's Chief Economic Council Jason Furman said regarding Biden’s plan, 'Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless,' he said. 'Doing it while going well beyond one campaign promise ($10K of student loan relief) and breaking another (all proposals paid for) is even worse.'
Furman added that a '24-year-old making $75,000 is likely to be at a relatively high percentile on a lifetime basis.'
In addition, the National Taxpayers Union Foundation claimed that the plan will cost every taxpayer $2,085.59, including those who did not benefit from the loan forgiveness.
A survey from CNBC revealed that 59 percent of Americans are concerned that student debt cancellation "will make inflation worse."
Some are also questioning the legality of the administration’s unilateral move.
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