NEW You can now listen to Fox News articles!
The Washington Post’s editorial board said Tuesday that President Biden’s “obvious” plan to forgive student loans would “still be a costly and unfair ploy in an election year.”
The board said the president was right to oppose the Democratic Party’s call for the abolition of the $ 50,000 student debt, which would provide assistance to wealthy borrowers who do not need help.
The president is in favor of forgiving $ 10,000 in student loans to a borrower, according to the Washington Post. It is reported that his latest plan will also limit the forgiveness to individual borrowers who earn less than $ 150,000 a year and $ 300,000 for couples who apply together.
“These provisions, while welcome, will not prevent the policy from becoming another subsidy funded by the upper middle class taxpayers,” the editorial board wrote.
The Washington Post’s editorial board criticized President Biden’s plan to forgive student loans on Tuesday. Anna Moneymaker / Getty Images
Cancellation of BIDEN’S STUDENT DEBT WILL BETTER INFLATION, EXPERTS WARN
The authors note the estimates of the Committee on Responsible Federal Budget that the plan could cost $ 230 billion, with more than 70 percent of the relief going to those in the “upper half of the income scale,” while a quarter of the benefits will go to the first 20 percent. “
“Even this does not fully express how regressive the policy would be, because many recent medical, law and business graduates would qualify for forgiveness, although their lifelong income trajectories do not justify it,” they said.
President Joe Biden’s plan to forgive $ 10,000 in student loans to a borrower has been thwarted by the Washington Post’s editorial board. (AP Photo / Evan Vucci)
LEGISLATORS ARE ALARMING FOR BIDEN’S PLAN TO REVOKE STUDENT LOAN DEBT: “CRAZY IDEA”
The authors of the editorial board added that debt forgiveness would help many people who need it, but said Biden could be more focused in his approach and could avoid setting a bad precedent for future presidents.
“Administration officials have emphasized that Mr Biden has not made a final decision and that his aim is to help those most in need. All right. There is still time to change course,” they concluded.
Biden has extended the break for student loan payments until the end of August, after it expired in May. He said the extension was because the United States was still recovering from COVID-19.
The Washington Post’s editorial board said Tuesday that Biden’s student loan plan was an “expensive” gimmick during the election year. ERIC BARADAT / AFP via Getty Images
CLICK HERE TO DOWNLOAD THE FOX NEWS APPLICATION
Several experts have warned that Biden’s plan to cancel student loans will worsen inflation.
“This will lead to the highest inflation,” said Douglas Holtz-Eaken, former director of the Congressional Budget Office. “If you forgive part of the debt, it will create a little more inflation. The least inflationary thing you have to do is get people back to paying their bills. That will take care of that.”
Economist Nicholas Eberstadt said it “would be an extremely regressive transfer to the wealthy”.
Add Comment