Great Lakes Wire

In light of Biden's recent student debt forgiveness plan, House Budget Committee Republican Leader Jason Smith (R-MO) points out the flaws in the Administration's course of action, as the burden now falls on American taxpayers.

Jason Smith, Republican Leader of the House Budget Committee, pointed out in a recent press release that Biden's student loan waiver will cost American taxpayers an estimated $3 billion.

“President Biden continues to pursue a permanent pandemic narrative at a tremendous cost to American taxpayers. Today, President Biden added billions more to the taxpayer’s tab by canceling the student loan debts of thousands of borrowers and rewriting repayment contracts for millions more with the swipe of a pen,” said Smith. “This comes soon after the President extended a blanket student loan payment moratorium that is costing taxpayers $4.3 billion every month, and further fueling the inflation fire raging across our country. Democrats have made it clear that their goal is total forgiveness of all federal student loans – a gross attack on hardworking Americans who would have to foot the bill for a $1.6 trillion bailout to the wealthiest twenty percent of American households – those with graduate degrees, six-figure incomes, and high lifetime earnings.”

Reuters reports that the U.S. Department of Education eliminated the student loan debt of approximately 40,000 Americans under the Biden Admiration’s Public Service Loan Forgiveness Program. Additionally, thousands of other Americans will get income-driven repayment (IDR) forgiveness and roughly 3.6 million borrowers will get a minimum of three years of extra credit toward IDR expenses.

President Biden has forgiven the most student loan debt than any of his predecessors with roughly $20 billion allocated to forgive student debt since he took office, accounting for only 1% of all debt which is $1.7 trillion among 45 million borrowers, according to Fortune.com.

News Nation Now expects Democrats to continue to pressure President Biden to forgive roughly $50,000 per student, despite him touting forgiving $10,000 per federal loan while on the campaign trail, a vow he has yet to keep.

Earlier this month, the Biden Administration announced they were prolonging the student loan repayment pause until the end of August, an initiative that began in January of 2021 to alleviate some of the financial burdens Americans had as they came out of the pandemic, according to the White House.

The Wall Street Journal reported that while President Biden has forgiven over $100 billion in student debt, the measures have yet to obtain congressional approval with the editorial stating that progressives will not be happy unless President Biden forgives all federal student debt.

According to estimates from educationdata.org, $51 billion in student loan debt belongs to Michigan residents. The 1,412,100 student borrowers that live in Michigan equate to roughly 14% of the state's total residents.