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(Video: Fox News)
With extension after extension on the repayment of student loan debt by all appearances becoming perpetuity, the Biden regime appears to be devising a way to fulfill a campaign promise without actually fulfilling it.
The idea of canceling $10,00 in student loan debt for every borrower was recently floated again by the languishing administration, but there may be a catch for many of those desiring some financial relief: An income cap.
The idea of one taxpayer paying off the debts of another is not without controversy – the type of which seems to depend on who’s getting the money and who’s involuntarily giving it – but Fox News’ Sandra Smith suggested the Biden regime is essentially punishing many college graduates for their success by imposing an income cap on who can get the debt relief; if and when it is ever implemented.
The New York Federal Reserve has estimated that paying off $10,000 in debt across the nation would cost U.S. taxpayers $321 billion, while the periodically mentioned figure of $50,000 in debt cancellation would cost taxpayers $904 billion.
Along with contributor Edward Lawrence, Marc Goldwein of the Responsible Federal Budget Committee joined “America Reports” and described his concern over debt cancellation by executive fiat.
“If the president cancels debt by executive order, what’s to stop the next president from canceling more debt, and the president after that canceling more debt?” he asked. ‘What I worry about most is that that will become an expectation, and that’s going to lead people to borrow more for college; to get fancier graduate degrees. It’s going to lead colleges to raise their tuition. Ultimately, it’s going to make higher education even less affordable than it is today.”
President Biden addressed the matter last week, saying, “I am considering dealing with some debt reduction. I am not considering $50,000 debt reduction, but I’m in the process of taking a hard look at whether or not there will be additional debt forgiveness and I’ll have an answer on that in the next couple of weeks.”
White House press secretary Jen Psaki was pressed on this issue of an income cap and was asked by a reporter if the administration had given any thought to how such debt forgiveness would affect an economy already wracked with 40-year high inflation.
She explained the prospective debt relief would be “targeted at people who need help the most.”
As for exacerbating inflation, she added, “I know there’s been outside analysis of that, but I don’t have any internal analysis at this point to preview for you.”
Perhaps she will circle back before she starts her new gig at MSNBC.
According to Fox News, people who earned less than $125,000 or $150,000 as individual filers in the previous tax year would be eligible for some form of debt forgiveness. That would roughly equate to a threshold of $250,000 to $300,000 for couples who filed their taxes jointly the previous year. No firm numbers have been decided at this point.
President Biden first extended the Trump-era moratorium on loan payments and interest in December of 2021. A second extension in May has moved the deadline for restarting payments to Sep. 1 of this year.
In any case, the money won’t materialize from nothing – though Congress habitually spends taxpayer money as though it does – and few seem willing to discuss sourcing funds from colleges and universities, many of which charge offensive sums of money for tuition and employ tenured professors who are often only skilled at fomenting unrest among their students and then sending them out into the world with nothing learned but a hatred for the very country that afforded them the opportunity for success.
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Frank (Chip) Webster is a musician and composer, former teacher of percussion and U.S. Army Infantry veteran. He holds a degree in English from Arizona State University.
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