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Tags: biden | trump | white house | debt | reduction | loans

White House Says Student Loan Debt Forgiveness 'Paid For'

bharat ramamurti speaks to the media
Bharat Ramamurti (Getty Images)

By    |   Friday, 26 August 2022 04:43 PM EDT

The director of the White House's National Economic Council said Friday that President Joe Biden's executive order to forgive some Americans' student debt is on "very strong legal ground."

While addressing the White House press corps, Bharat Ramamurti also said the Biden administration's one-time measure of eliminating student debt would likely fare well in the event of legal challenges from legal or political groups.

When pressed on whether the debt-reduction plan has already been "paid for," Ramamurti answered in the affirmative.

"Yes, this is paid for; and it's paid for — and far more — by the amount of deficit reduction we're already on track for this year," said Ramamurti, while reiterating the White House projections of taking in $1.7 trillion more revenue in 2022, compared to last fiscal year.

"And we're using a portion of that revenue, a very small portion of it, to provide relief to middle-class families consistent with the president's plan. So, yes, we consider that 'paid for.'"

If Biden's order garners passage in the House and Senate chambers, the U.S. government would subsequently forgive $10,000 of student debt from Americans earning less than $125,000 a year (or less than $250,000 for married couples); Pell Grant recipients could be eligible for a $20,000 debt reduction.

Based on estimates from the Penn Wharton Budget Model, Biden's debt forgiveness plan would cost $330 billion to $500 billion.

According to TaxFoundation.org, the distribution of these benefits is "skewed to the high-end, with about 70% of debt relief accruing to borrowers in the top 60% of the income distribution."

On Thursday, former President Donald Trump mocked the exorbitant price tag of Biden's debt-reduction plan, saying via the Truth Social app: "Joe Biden and the Radical Left Democrats have just orchestrated another election-enhancing money grab, this time to the tune of $300,000,000,00 — and just like I predicted, it's coming right out of the pocket of the working-class Americans who are struggling the most!

"Crippling inflation, unaffordable energy price, and WAR — all things that should never have happened. But if that wasn't enough, now Americans are bailing out College Administrators who fleeced students, and those who opted for Degrees there was no way they could afford. 

"America is a nation in decline, and the cliff into oblivious is within sight. Stop voting for Democrats! MAKE AMERICA GREAT AGAIN!"

Also, Senate Minority Leader Mitch McConnell, R-Ky., characterized the relief plan as "astonishingly unfair."

"President Biden's student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our Armed Forces in order to avoid taking on debt," said McConnell.

According to Ramamurti, initial White House estimates presume 75% of those eligible for debt relief will apply for it.

Ramamurti also cautioned that a more thorough financial review would be undertaken by the Education Department.

© 2022 Newsmax. All rights reserved.


Newsfront
The director of the White House's National Economic Council said Friday that President Joe Biden's executive order to forgive some Americans' student debt is on "very strong legal ground."
biden, trump, white house, debt, reduction, loans
490
2022-43-26
Friday, 26 August 2022 04:43 PM
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