During his 2020 campaign, Joe Biden was promising to forgive students up to $10k of their loan debt, should he become president.
Now, he’s chosen the worst possible time to go above and beyond that number, offering the possibility of wiping $1.6 trillion of debt entirely.
This plan was originally hinted at during a Monday meeting with the Congressional Hispanic Caucus, where Biden presented this economically devastating idea to Representative Tony Cardenas, a California Democrat.
Biden probably came to the idea due to his tanking approval rating, which is reaching unprecedented lows.
While it may appeal to the younger portion of the crowd, the conservative right is well-aware of the damages this move could do in a high-inflation climate.
Biden preparing to throw US economy under the bus
Later that day, the White House issued a statement, assuring no plans of canceling student loan debt are in the works.
Although, press secretary Jen Psaki did try to salvage Biden’s crumbling reputation by claiming a decision regarding the cancellation of “some” debt will be announced by the end of August.
So in the last 24 hours, Democrats have suggested the following economic policies:
1. Relieving student loan debt;
2. Radically increasing taxes.
Deliberate stagflation is a fascinating strategy going into 2022. pic.twitter.com/mfqmCoOMZ9
— Ben Shapiro (@benshapiro) April 27, 2022
However, this August deadline was reached through the Biden administration’s constant demands to extend the COVID-19 era pause on loan payments; this has ultimately led to borrowers saving up to $5 in monthly interest payments.
Much like President Biden, the rest of the Democrats came up with less radical, but still unrealistic, ideas regarding debt forgiveness, with some proposing up to $50k being removed from each borrower’s debt.
AOC takes the lead with unrealistic demands
Naturally, Rep. Alexandra Ocasio-Cortez weighed in on the matter too, urging the president to cancel all student debt, as well as criticizing his loan payment moratorium for being a “stall tactic” that leaves young people uneasy.
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
What AOC seems to forget is that loans simply don’t work that way. Borrowing money means you’ll have to return it eventually.
This concept goes over the heads of many young Americans who go to prestige universities way out of their budget, let alone those who owe upwards of $30k for a liberal arts program.
The Federal Reserve Bank in NY made an estimate that an average of $50k of debt per student being forgiven would ease the grip on almost 30 million borrowers.
This would come at the steep cost of $904 billion, an amount that the US simply can’t afford at the moment.
Canceling student loan debt is stupid.
— Rep. Jim Jordan (@Jim_Jordan) April 27, 2022
With this, the average student would lose around $23,800 in debt; this, ultimately, ends up making the payment of the remaining debt much easier on them.
Borrowers working as public servants become eligible for debt forgiveness after ten years of qualifying payments, while several thousand borrowers in the IDR program will have their debt forgiven regardless.