President Biden is considering a plan to forgive a meaningful amount of student loans.
CBS News reported, “The move could affect more than 43 million borrowers who hold more than $1.6 trillion in federal student loan debt, the second-largest debt held by Americans, behind mortgages.”
The move could affect more than 43 million borrowers who hold more than $1.6 trillion in federal student loan debt, the second-largest debt held by Americans, behind mortgages. https://t.co/WXiUeF16T6
— CBS News (@CBSNews) April 26, 2022
As CBS News noted, Biden’s current idea is a reversal from what he was saying during the 2020 presidential campaign where he wanted a more limited type of loan forgiveness.
According to Democrat Representative Tony Cardenas, Biden toldthe Congressional Hispanic Caucus he is thinking about “…wiping out a “significant” amount of the $1.7 trillion in student loan debt….”
Last Sunday, Senator Elizabeth Warren (D-MA) pushed student loan forgiveness on CBS News’s “Face the Nation.”
Senator Ted Cruz (R-TX) criticized the idea of forgiving loans saying it will result in more inflation.
If President Biden cancels student loan debt, inflation will explode.
Here’s a visualization of what it would look like: pic.twitter.com/jf509ixGPg
— Senator Ted Cruz (@SenTedCruz) April 27, 2022
The Biden plan, if executed, would be done via an executive action and not through legislation.
Forgiving student loans is a bad move that will only increase our nation’s debt but will also send the wrong message to students and the general public.
With Biden’s poor public opinion polls, student loan forgiveness is just an attempt to buy votes.