(Central Square) – U.S. Rep. Cathy McMorris Rogers, R-Spokane, is calling President Joe Biden’s decision to shift student loan debt from borrowers to taxpayers a “dramatic overreach of his authority” and “a slap in the face to every hardworking person.” in Eastern Washington, who will now have to pay for everything.”
“While it may sound beautiful to pretend that the president can make the debt disappear with the stroke of a pen, it is a simple belief that is fundamentally at odds with basic economic principles,” McMorris Rogers said in a statement. “Families are already paying an extra $500 a month thanks to record high inflation, and adding $300 billion to the deficit will only make things worse. The American people can’t afford to waste Democrats like kids in a candy store.”
She pointed to the U.S. Census Bureau’s finding that Biden’s debt relief plan benefits households earning four times the median income in the eastern part of the state.
On Wednesday, Biden announced that he would forgive $10,000 in federal student debt for most borrowers through an executive order. The president will eliminate up to $20,000 in payments for Pell grant recipients.
The White House estimates that at least 9 million borrowers could pay off their debt in full under Biden’s plan.
McMorris Rogers said economists expect Biden’s debt rollover to cost taxpayers between $300 billion and $980 billion over the next 10 years.
In addition to the loan forgiveness, the president also extended the payment pause on most federal student loans for the seventh and final time until Dec. 31, according to a tweet he sent on Aug. 24. Loan payments were expected to resume in September.
“Taking out loans for higher education is a personal choice. Part of that solution is taking responsibility for paying back the money you borrowed,” McMorris Rogers said. “Putting the burden of paying that debt onto taxpayers — who have either already paid off their loans or never took them out — is unfair. those who played by the rules and will only lead to higher inflation and higher costs for those who can least afford it.’
She said 70% of Biden’s debt relief funds would go to the top 60% of earners.
“The goal should not be to hand out highly educated borrowers at the expense of everyone else,” she said.
Federal officials should aim to lower the cost of higher education for all Americans, which has risen nearly 200% in the past four years, McMorris Rogers said.
““Student debt transfer does nothing to reduce the high cost of higher education and does not give colleges the courage to continue raising tuition,” she said.
She added that the Committee for a Responsible Federal Budget predicted that student loan debt would return to its current level of $1.6 trillion in just four years.
https://www.indianagazette.com/news/national/mcmorris-rodgers-calls-student-loan-forgiveness-a-slap-in-the-face-to-taxpayers/article_fdad9aa3-62d0-5be8-87cb-cb7e3784c85b.html
