The White House has still failed to disclose any information regarding plans to fund Biden’s decision to cancel loans. Five days after the President revealed his plans to cancel between $10,000 to $20,000 in student debt, he has remained mute about how he intends to sponsor this bill.
According to estimates, this bill is over $500 billion, but the President still refuses to clarify the intentions to pay for it long-term. To settle this fee, future tax hikes will likely be implemented, and even Americans who will not receive these relief funds will be mandated to pay these increased taxes.
This would mean taxpayers will be hooked for most of the principal and interest. In addition, taxpayers still have to pay a whooping sum of $31 trillion in US debt, which has also taken its toll on pay grades all around the country.
The Imperial and Impaired Presidency: Biden has no authority to forgive student loan debt. And our National Debt surpasses $30 trillion#TheGreatAmericaShow
White House refuses to say who will pay for Biden $500,000,000,000 student loan handout https://t.co/P5A3HmIvPy #FoxNews— Lou Dobbs (@LouDobbs) August 28, 2022
The White House, ever since making this ridiculous announcement, has ghosted the press and refused to give any other statements for clarification.
Bharat Ramamurti, deputy director of the National Economic Council, claimed on Friday that the plan has been settled and fully funded through deficit reduction without clarifying the plans.
He said, “It is paid for and far more by the amount of deficit reduction that we’re already on track for this year. Like I said, we’re on track for $1.7 trillion in deficit reduction this year. That means, practically speaking, compared to the previous year, 1.7 trillion more dollars are coming into the Treasury than are going out. And we’re using a portion of that — a very small portion of it — to provide relief to middle-class families, consistent with the President’s plan.”
However, this plan announced by Ramamurti seems impossible and unbelievable.
Democrats have no idea how to pay for student-debt transfer https://t.co/3vnPu4Ax66
— Georgia Log Cabin (@GeorgiaLogCabin) August 28, 2022
Administration officials have noted that the national deficit is already plunging and refused to comment directly on how Biden’s plan will affect the deficit. They claimed that the relief funds plans could not be totally accounted for as they do not have an estimate of the borrowers who would wish to take advantage of the opportunity. They also claimed that many people in debt would have also paid back their loans at the time, so there is nothing to worry about.
The White House’s spokesman Jean-Pierre said, “All of this as when it comes to costs will also depend on how many of the loans canceled were actually expected to be repaid.“
The National Taxpayers Union Foundation completely disagrees with the White House’s logic. They estimated that the loan handout sums up to about $330 billion over the next ten years. The Committee for a Responsible Budget estimates the budget to be about $600 billion. For the President’s plan to happen, the average cost for every American taxpayer will be at least $2,000.
Almost every American has slammed this impossible and unfair plan, and they have protested for the White House to develop a better plan that would not affect every American in the future.
In addition to this student loan relief proposal, the Education Department has also come up with another proposal affecting taxpayers’ pockets. This new proposal allows borrowers to cap undergraduate loan repayment at 5% of their monthly income. This could estimate to be about $1 trillion, which would be detrimental to taxpayers who work for their money.