Moolenaar on Biden's Plan to Burden Taxpayers with Student Debt

Press Release

Today, President Biden announced that he will put taxpayers on the hook for student loans and cancel some of the debt students chose to take on when they want to college.

"Today's announcement by President Biden takes money from hardworking Michigan families and benefits mostly wealthier Americans who chose to take on debt on their own. Meanwhile, hardworking Michigan residents who learned skilled trades and put those skills to work will now be picking up the tab for personal loans taken out by others," said Congressman John Moolenaar. "It is completely unfair to the many Americans who worked hard and already paid back their loans. All of us will be paying a price for this Biden policy as it will increase inflation and the cost for goods and services."

Even other Democrats say Biden's proposal will hurt working families because it will send inflation higher. Earlier this week, Larry Summers, former economic advisor for President Barack Obama, said, "Student loan debt relief is spending that raises demand and increases inflation."

Jason Furman, another one of Obama's advisors, called Biden's move "reckless."

A new analysis from the University of Pennsylvania's Wharton Budget Model estimates that Biden's debt cancellation could cost $1 trillion, with most of the benefits going to the top 60 percent of earners.

Source