NEW Fox News articles can now be heard on audio! On Wednesday, President Biden is anticipated to make a broad and hotly contested announcement on the repayment of some Americans’ student loan debt. House Speaker Nancy Pelosi, a Democrat from California, claimed last year that he lacked the right to make this announcement.
According to numerous media sites, Biden would declare a $10,000 one-time giveaway for borrowers who earn less than $125,000 annually. The anticipated cost to American taxpayers is $300 billion.
According to the Associated Press, specifics were being kept within an extremely narrow circle and were still being worked out as of Tuesday night, suggesting that the plan would still be subject to change.
However, the left of the Democratic Party has long called for the elimination of student loan debt, and leaders like Senate Majority Leader Chuck Schumer, D-New York, have been fervently advocating for it.
Tuesday, Joe Biden is anticipated to announce a $10,000 student loan program.
Pelosi, though, shot down the notion last year, arguing that such a move belonged in Congress, not the executive, and that it was a matter for a congressional act.
In July of last year, Pelosi stated that “many think that the president of the United States has the capacity to erase debt, but he does not.” “He can delay and postpone, but he lacks that ability. That has to be a congressional act.”
She also seemed to doubt the fairness of the policy.
“Consider a scenario in which your child has suddenly decided they “don’t” want to attend college, but you are paying taxes to discharge someone else’s debts. You might not be content with that, “Pelosi stated, before going on to say that she does not want children to be prevented from attending college due to cost.
Sen. Schumer’s claims that the president could make such a broad action “with the flick of a pen” were in stark contrast to her assertions.
STUDENT LOAN MOVE COULD COST $900B AND FAVOR TOP EARNERS, ANALYSIS SHOWS
Fox News Digital sent a comment request to Pelosi’s office asking if she still believed that the president lacked the power to take such action.
Even though the anticipated $10,000 handout would fall far short of what supporters have demanded, calling for the complete elimination of student loan debt or at least $50,000, the move will undoubtedly draw criticism from those who claim it would cause inflation, be expensive, and involve working-class Americans paying off the debts of higher earners. A legal challenge is also quite likely to be launched.
“It’s impossible to defend in any manner. It’s forbidden. It’s wrong. It is random. The main problem we currently confront, inflation, is made worse by it “Charles Cooke, a senior writer for National Review, is tweeted . The group with the lowest unemployment rate and the best prospects receives money from other people.
Sen. Tom Cotton, R-Ark., tweeted that Joe Biden “has had a lot of poor ideas.”
But it might be his worst decision yet to transfer billions of dollars in student loan debt to taxpayers, particularly at a time of high inflation.
Before any statement was made, Sen. Bernie Sanders, I-VT, defended the contentious action and pressed for the decision to pay off all student debt.
“Businesses getting PPP loans typically receive a debt forgiveness payment of $95,700. Do not tell me we can’t afford to cancel all school debt for 45 million Americans if we could afford to cancel hundreds of billions in PPP loans to business owners in their time of need “said he.