Fox News reports that the White House is still refusing to say where the money will come from to pay for President Joe Biden’s student loan handout.
Biden, last week, made two big announcements regarding federal student loans. One is that the moratorium on federal student loan payments will continue through the end of the year.
The other is that the federal government will cancel up to $10,000 of federal student loan debt per borrower — or up to $20,000 for Pell Grant recipients — so long as the borrower is making less than $125,000 if single, or $250,000 if married.
As would be expected, particularly given the current state of the U.S. economy, Biden’s announcement has led to questions about how this student loan handout — which is estimated to cost upwards of $500 billion — is going to be paid for.
Surely, the Biden administration could have anticipated such a basic question. Yet, it still has not been able to offer a viable answer.
Instead, administration officials have claimed that the United States has achieved a $350 billion — and growing — deficit reduction under Biden.
Administration officials have also argued that it can’t say who is going to pay because they don’t know how many individuals will take advantage of the loan cancellation program, and thus, how much will have to be paid.
Silence . . . louder than words?
The likely truth of the matter is that the Biden administration is not saying who will pay for the student loan handout because they know that Americans will not like the answer.
Even the leftward Washington Post has admitted that it will likely be the American taxpayers who will be “footing the bill.”
This was also admitted by Jason Furman, the former economic adviser to the Obama administration.
Shortly after Biden announced his student loan handout, Furman tweeted:
There are a number of other highly problematic impacts including encouraging higher tuition in the future, encouraging more borrowing, creating expectations of future debt forgiveness, and more. Most importantly, everyone else will pay for this either in the form of higher inflation or in higher taxes or lower benefits in the future.
The student loan handout is clearly an attempt by Biden to garner support for Democrats leading into the midterm elections. But, there is every indication that this one is backfiring on Biden spectacularly.