The biggest winners of Biden’s student debt ‘cancellation’
By
Jon Miltimore
April 26, 2024 9:54 am
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President Joe Biden introduced new provisions to his student debt relief plan earlier this month, and the primary beneficiaries are high-income earners, according to a new analysis released by the Wharton School of the University of Pennsylvania.
While Biden’s 2023 SAVE Plan already put taxpayers on the hook for $475 billion, the new plans add another $84 billion to the tally — largely by “canceling” the student debt of some 750,000 households making more than $312,000 a year on average.
The average debt relief for these households is $25,500, the study found.
In June 2023, the Supreme Court struck down the Biden administration’s previous loan forgiveness program, which was implemented without congressional approval. And like Biden’s previous attempt to stick taxpayers with hundreds of billions of dollars of student loans via executive action, the latest attempts have sparked numerous lawsuits and appear headed for a legal showdown.
“This latest attempt to sidestep the Constitution is only the most recent instance in a long but troubling pattern of the President relying on innocuous language from decades-old statutes to impose drastic, costly policy changes on the American people without their consent,” one of the lawsuits reads.
Whether the White House’s latest scheme fares any better in court than the previous one is yet to be determined. What’s clear is that it is a dreadful, immoral, and dangerous policy.
For starters, the public treasury is being used to pay off the student loans of families who represent the top 5% of earners in the United States. This would be an unjust, senseless, and reckless policy even in fat economic times. But the times are hardly fat.
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https://www.washingtonexaminer.com/opinion/2980666/the-biggest-winners-of-bidens-student-debt-cancellation/
