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(Video Credit: MSNBC)
Chairwoman of the Congressional Progressive Caucus Rep. Pramila Jayapal (D-WA) pushed canceling student loan debt as a social justice issue on “Meet the Press” Thursday with host Chuck Todd, while blithely ignoring the disastrous economic consequences it would trigger.
Jayapal asserted that nixing all forms of student loan debt, both public and private, would significantly raise the income of black families while also stating that means testing was not necessary to determine whether an individual would be eligible or not for federal government assistance. She appears to want all student debt canceled regardless of what it would do to the economy.
The leftist politico laughably claimed that student loan debt cancelation would “stimulate the economy.” The Committee for a Responsible Budget (CFRB) has warned that such a move would dramatically increase inflation, cost the federal government $1.6 trillion that it doesn’t have, and severely impact the supply chain.
Todd kicked off the segment by asking the woke Democrat what things President Joe Biden and the Democratic Party should be focusing on leading up to the 2022 midterm elections.
Jayapal proceeded to list a number of things she thinks Democrats should address. That list included climate change, tax reform, and student debt cancelation.
3️⃣ Words: cancel student debt.
— Pramila Jayapal (@PramilaJayapal) April 8, 2022
Todd pressed Jayapal on what would qualify someone to get their debt canceled.
“When I ran for Congress in 2016, student debt was at $1.3 trillion. Today student debt is at $1.9 trillion. A lot of this money is money that the federal government makes and that these debt collectors make on interest rates that are higher than what we actually need to be charging,” she responded, deflecting from directly answering the question.
When my son enrolled in college, parents were told the students are adults, hands off. Responsible adults pay their debts. Students took out loans knowing they would have to pay them back. If there is a problem with loan system, fix it. As responsible adults, PAY YOUR DEBT!
— Hale Grady (@HaleGrady1) April 8, 2022
She contended that if the goal was to get as many individuals with the best qualification educated, then forcing them to repay their loans would hamper the effort.
“This all shows that as much debt as you can cancel – you may know that I’m for canceling all of it – but as much debt as you can cancel is going to stimulate the economy,” she falsely claimed. “Last fact here is that if we were to cancel all of the debt that’s out there, we would raise the wealth of black families in America by 40%. This is a racial justice issue as well.”
“Sometimes we overthink this stuff in trying to parse it down when the studies actually show that we would have a net economic benefit,” Jayapal remarked. “When you free up student debt payments for people, it’s not like they just stock away that money. They actually put it into buying cars, houses, whatever, so it stimulates the economy through their purchases.”
Yes. Then forgive their car loans and home loans and credit card debt. Why should anyone have to fulfill their commitments?
— Not a Karen Karen (@kleegrubaugh) April 9, 2022
Todd did not question the validity of Jayapal’s assertions despite what economists say would happen to the economy if student debt was canceled across the board.
Her fixation on canceling student debt is nothing new. Progressives have been aggressively pushing Biden on the issue, resulting in an announcement on Wednesday that the administration plans to extend the pause on federal student loan repayments until the end of August.
“If loan payments were to resume on schedule in May, analysis of recent data from the Federal Reserve suggests that millions of student loan borrowers would face significant economic hardship,” Biden said in a statement.
The resultant delinquencies and defaults, he added, “could threaten Americans’ financial stability.”
“While the extension is welcome, a looming restart of student loan payments in September underscores the importance of swift executive action on meaningful student debt cancellation,” a letter sent to Biden by lawmakers responding to the extension said, according to the Kansas Reflector. “We continue to implore the President to use his clear legal authority to cancel student debt, which will help narrow the racial wealth gap, boost our economic recovery, and demonstrate that this government is fighting for the people.”
It will make me feel so much better if I pay off their debt.
— VetRetired (@VetRetired2) April 8, 2022
Lawmakers who sent the letter include Sens. Elizabeth Warren of Massachusetts, Chuck Schumer of New York, Alex Padilla of California, and Raphael Warnock of Georgia, as well as Reps. Ayanna Pressley of Massachusetts, Ilhan Omar of Minnesota, Pramila Jayapal of Washington, and James E. Clyburn of South Carolina.
But according to the Committee for a Responsible Budget, canceling student debt could increase inflation on top of the historic level Biden has presided over since he has been in office.
“Given the current state of the economy, we estimate cancelling all $1.6 trillion of student debt would increase the inflation rate by between 10 and 50 basis points (0.1 to 0.5 percentage points) in the 12 months after repayment is scheduled to begin. This would represent a 4 to 20 percent increase relative to the median Federal Reserve inflation rate forecast,” the committee noted in February, adding that “we estimate student debt cancellation would increase inflation by 10 to 14 basis points.”
The agency also warned that the action could potentially decrease loan institutions’ sensitivity to high levels of debt, which could then lead to further increasing college tuition, ostensibly restricting educational choices for Americans.
“Prospective students may expect future rounds of debt cancellation, which could increase their willingness to take on more debt, thus decreasing their sensitivity to the prices that schools charge and ultimately making it easier for schools to increase prices even faster than they already do,” the report added.
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28 thoughts on “‘Squad’ member steps up rhetoric on student debt cancelation with race card”
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They are asking Americans who can’t afford to send their children to college to pay the legal loans of those who are not responsible enough to pay their debts.
Seems unfair to those of us who don’t have loans to be paid, I want my portion of what they would have taken care of. Yes that sounds as dumb as them paying of tuition for the indoctrinated cry babies.
Why should anyone get free college tuition? You want it, you pay for it.
I paid for mine, and I value what I got out of it. Seeing how poorly many
people treat things that they get without paying should be enough for even
these dim-witted politicians to understand the stupidity of free college.
It’s not free to the American public who will be taxed to finance this fiasco,
and we know how the Government takes it’s cut off the top.
Face it, it’s just another scheme to separate the people from their hard
earned money.
Let the politicians backing this plan, fund it out of their own pockets.
And let’s rein in the cost of this “higher” education. Many of the courses
offered, (and some required) have nothing to do toward any meaningful
educational goals.
Better idea would be to make the colleges and universities to pay the money back. Maybe they would lower their charges to the value of what they are furnishing.
So, will the government reimburse us for all of the student loans that we have already paid back?
That question was asked and answered when a taxpayer asked one of the Democrats pushing this nonsense (I think it was Nancy but not sure). Question was since I paid my debt will I get a refund or do those of us who pay our debts get screwed? The answer was ‘you are not getting screwed and no there will be no refunds.’
There are scores of members of Congress who still have outstanding student loans, and AOC is one of them. Self-serving?
The word “LOAN” has a definition, and these “smart” people in our congress need to look it up, in a book called a “dictionary!” A LOAN has to be repaid by the one who signed up to take out the “LOAN,” not by the American taxpayer, who had nothing to do with taking that “LOAN” out! It appears we have people in our Congress who are too stupid to know that. I took out a loan for my tuition, and I KNEW that I had to repay it.
And what’s next, loan “forgiveness” for car loans, mortgages….. A loan is a signed legal document stating one will pay back the loan. If the loan was signed by a parent because the student was underage to sign for the loan, the parents are then responsible ! Pretty simple, really. And just how is “forgiving” the loan going to stimulate the economy ?? What we NEED to do, is get rid of these radical, woke “politicians” !
I worked my way through school, working one full-time job and having several part-time jobs … took me seven years but I (and my ex-wife) graduated with no debt and no help from my parents (though they did offer to help) … they got the education and now don’t want to pay for it ? … give me a break …
That is a stretch, I don’t think they got an education just indoctrinated by the GIMME DAT liberal Alphabet teachers.
I want my reparations, Jayapal. Who in their right minds would vote for this communist POC?
I want to be there for the last person who JUST PAID off their loan only to have the NEXT slacker to have it paid in full: there HAS to and WILL be that exact scenario given these idiots plans. And not one of these morons has been asked this directly. And I dont care HOW the loans were paid before the loan cancel plan either by well off parents or minorities or other who worked 2-3 jobs to do it. She and ALL progressives are just flat stupid, unthinking Dbags.
This is one of those Democratic Sucker bills. It makes a sucker out of everyone who did it the right way, worked their buttocks off, and paid off their loans.
All right, Jayapal, I want all the money I paid to repay my student loans, with interest from 170 – 1975. Pay up or shut up about canceling student debt.
Perhaps this moron from Washingtoncan offer a detailed explanation of how anyone’s “income” can be raised by decreasing debt?
The government got into the mortgage business and crashed the housing market. The government took over student loans and will crash that as well. Anything the government subsidizes goes up in price.
Here is an idea. Since the only beneficiary of saddling young morons with debt they can’t or won’t repay were the universities bilking them while handing them worthless degrees and building resorts on campus, stick them with the tab. The endowments of the major universities could pay the tuition of generations of students.
Yeah…if you don’t let a bunch of RICH liberal (mostly) white kids off the hook for tens of thousands of dollars of debt they willingly borrowed, or you are a racist.
Why should taxpayers earning 5 figure annual incomes be required to pay for these coddled students a debt free education when if they’ve chosen the right field of endeavor they will be among the 6 figure income group. If they can’t afford college go to a trade school. The free college discriminates against those whose grades deny them being accepted to a college but these same students will be paying for those who were accepted.
So a recent article states that trillions upon trillions of dollars have been spent on the black community since Johnson was president. approximately 20 Marshall Plans and what has been the result? No assimilation into the larger community, worse educational standards, higher crime, higher drug use, breakup of the 2 parent family, more murders, more abortions and 100 other things antithetical to a civil life. If another hundred trillion dollars was spent all at once and every single white person turned over everything they had to this community, within 5 years they would come back with their hands out and blaming white people for their problems again.
Donald Trump did more to raise Blacks out of poverty and into the mainstream than all of that money spent on useless and corrupt social programs. So the Democrats had to put an end to that and put them back into the chains of welfare and the corruption of BLM.
Take out a loan – pay it back – SIMPLE !
They did not pay for anything it was given to them. They would not know how to pay it off unless the gov does it. By the way, every forgiven student lone is income. They should pay tax on that.
Is it possible that the repubs have paid the Jihad Squad to issue words and take actions that will destroy the dem party, from within, and, without? If so, brilliant! If not….
This is all horse excrement. If someone REALLY wants to get an education but cannot afford to without going into debt, they can join the armed forces,serve 3 years, and have their education paid for after they get out. The Army is having trouble recruiting right now. I don’t understand why, because 3 years of service, while getting paid, learning skills and not having crushing debt for up to 20 years, seems like a good deal. The “Squad” should be promoting that, and responsibility, not teaching kids there are no consequences for their decisions. FJB
And just WHO IS TO BLAME for the EXPLOSION of COLLEGE COSTS and STUDENT DEBTS?? No other than the Segment of EXCREMENT OBLAMA!! I posted WAY back then that the costs and FAILURES would be enormous! BUT, as I posted then, it did what the dems INTENDED!! It CREATED yet ANOTHER VOTE BUYING SCHEME FOR THE DEMS!! Just keep hanging that ACORN over their heads – DEBT FORGIVENESS, BUT YOU HAVE TO KEEP VOTING FOR US!! THAT was the SCHEME!!! When the R’s regain the HOUSE, SENATE, and WHITE HOUSE they should PASS A LAW that ABSOLUTELY ENDS ANY DOUBT that student loans WILL NOT BE FORGIVEN!! Spell out WHY and WHO are RESPONSIBLE!!
It’s a slap in the face to taxpayers and us that worked our asses off to pay for our college. I went to a very affordable juco then a state while working while not in class. Actually started as a 10 yo saving for school. No parties, cars, nice clothes, etc. Graduated with no debt, $20 in my pocket, and a job. Instead of good grades I started at the bottom continuing to work hard to rise up.
I can’t remember the last time Dems and Rinos actually told the truth! Probably never! One last thing Chuck Todd has not ⚾⚾ or morals to get to the truth just like the rest of the MSM, fake news!