Benefits accrue to tens of millions of Americans.
President Biden is taking action Wednesday to forgive $10,000 or more in federal student loan debt, a move that would provide unprecedented relief for tens of millions of American borrowers. The plan covers borrowers making less than $125,000 a year.
The president’s announcement is expected to include a short-term extension of the pause on federal student loan interest and repayments originally put in place to provide relief amid the economic fallout caused by COVID-19. The freeze is scheduled to expire on August 31.
Experts, including economists from the president’s own political party, say the plan will make inflation worse, disproportionately benefitting wealthier Americans, and cost taxpayers hundreds of billions of dollars. The pause to the end of the year would cost an additional $20 billion, according to calculations by the independent Committee for a Responsible Federal Budget.
Larry Summers, a former official in the administrations of Presidents Clinton and Obama, warned Monday that President Biden could make the current inflation crisis worse through student debt forgiveness.
As the Lord Leads, Pray with Us…
- For discernment for the president and his administration as they address federal student loans.
- For Secretary Miguel Cardona as he oversees the Education Department.
- For Richard Cordray as he heads the office of Federal Student Aid.
Sources: Wall Street Journal, Just The News, ABC News
