Biden says he's considering forgiving student loan debt, but not $50,000 per borrower
CBSSep 21, 2022
The Facts
In a meeting with the Congressional Hispanic Caucus on Mon., Biden said he's exploring further potential actions on student loan debt forgiveness.
Although he didn't discuss forgiving all student debt, he said he's open to going beyond the $10k loan forgiveness pledged during his campaign.
The Spin
Left narrative
Canceling student loan debt makes sense both economically and politically. Millions of Americans would start with a clean slate, and the stimulative effects in the future would be significant. It would also prove that Democrats can get something done for ordinary Americans, helping their odds in the upcoming midterm elections.
Right narrative
Biden has yet to present a plan to reduce new student loan volume. In the absence of such a plan, even if he were to forgive $50k per borrower, the Committee for a Responsible Federal Budget calculates that overall student debt will climb back up to current levels by 2030. This will only lead to higher inflation rates and more taxpayer dollars wasted.
Cynical narrative
This is nothing more than a transparent effort to bribe one of the wealthier cohorts of Americans to vote blue in the midterms. Even left-leaning think tanks agree that student loan forgiveness would be a boon to the rich and a transfer of wealth to the young and already privileged.