Obscene amounts taxpayers would pay for student loan forgiveness, even with divisive income caps

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(Video: Fox News)

With extension after extension on the repayment of student loan debt by all appearances becoming perpetuity, the Biden regime appears to be devising a way to fulfill a campaign promise without actually fulfilling it.

The idea of canceling $10,00 in student loan debt for every borrower was recently floated again by the languishing administration, but there may be a catch for many of those desiring some financial relief: An income cap.

The idea of one taxpayer paying off the debts of another is not without controversy – the type of which seems to depend on who’s getting the money and who’s involuntarily giving it – but Fox News’ Sandra Smith suggested the Biden regime is essentially punishing many college graduates for their success by imposing an income cap on who can get the debt relief; if and when it is ever implemented.

The New York Federal Reserve has estimated that paying off $10,000 in debt across the nation would cost U.S. taxpayers $321 billion, while the periodically mentioned figure of $50,000 in debt cancellation would cost taxpayers $904 billion.

Along with contributor Edward Lawrence, Marc Goldwein of the Responsible Federal Budget Committee joined “America Reports” and described his concern over debt cancellation by executive fiat.

“If the president cancels debt by executive order, what’s to stop the next president from canceling more debt, and the president after that canceling more debt?” he asked. ‘What I worry about most is that that will become an expectation, and that’s going to lead people to borrow more for college; to get fancier graduate degrees. It’s going to lead colleges to raise their tuition. Ultimately, it’s going to make higher education even less affordable than it is today.”

President Biden addressed the matter last week, saying, “I am considering dealing with some debt reduction. I am not considering $50,000 debt reduction, but I’m in the process of taking a hard look at whether or not there will be additional debt forgiveness and I’ll have an answer on that in the next couple of weeks.”

White House press secretary Jen Psaki was pressed on this issue of an income cap and was asked by a reporter if the administration had given any thought to how such debt forgiveness would affect an economy already wracked with 40-year high inflation.

She explained the prospective debt relief would be “targeted at people who need help the most.”

As for exacerbating inflation, she added, “I know there’s been outside analysis of that, but I don’t have any internal analysis at this point to preview for you.”

Perhaps she will circle back before she starts her new gig at MSNBC.

According to Fox News, people who earned less than $125,000 or $150,000 as individual filers in the previous tax year would be eligible for some form of debt forgiveness. That would roughly equate to a threshold of $250,000 to $300,000 for couples who filed their taxes jointly the previous year. No firm numbers have been decided at this point.

President Biden first extended the Trump-era moratorium on loan payments and interest in December of 2021. A second extension in May has moved the deadline for restarting payments to Sep. 1 of this year.

In any case, the money won’t materialize from nothing – though Congress habitually spends taxpayer money as though it does – and few seem willing to discuss sourcing funds from colleges and universities, many of which charge offensive sums of money for tuition and employ tenured professors who are often only skilled at fomenting unrest among their students and then sending them out into the world with nothing learned but a hatred for the very country that afforded them the opportunity for success.

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8 thoughts on “Obscene amounts taxpayers would pay for student loan forgiveness, even with divisive income caps

  1. Any loan forgiveness is an absolute slap in the face to responsible college attendees who actually paid their loan and to all American’s who didn’t go to college who will be paying for those who did. Student loans are voluntary.

  2. I wonder if all the potential recipients of Biden’s largess (vote buying) realize that they will owe taxes on the canceled student loans?

  3. I heard those forgiven will be issued a Form 1099 in the amt od their loan, like it was income, to pay inc.tax on.

  4. It would cost about 3 trillion dollars, just about the amount of the build back better Biden bill and all of that money was going to the four horsemen of the Democrat party: Waste, Fraud, Graft and Corruption!

  5. The ONLY way to forgive these loans is to have them paid back by the Universities that benefited from them. Seems like no one else benefited, not the woke students , that’s for sure.

    1. You can’t blame the U’s or the students for taking advantage of a perfectly legal program.

      The stupidity rests with the government, and ultimately with the voters who ignored the stupidity created by their elected representatives.

  6. I have a compromise. Expensive but worth the cost.

    Forgive ALL student loans. And give the cash back to all the people who paid their student loans going back 20 years.

    In return disband the Education Department.

    Discontinue all federal student loan programs outside the VA and active duty military.

    Any loans for students already approved to be grandfathered for a 4 year education period.

    I guarantee you that the above solution will cause a broad tuition reduction within 5 years, massive reduction in college level “professors”, reduction and/or elimination of “gender studies” and other advance fvckery, AND a massive reduction in the power of left wing indoctrination.

    I’m willing to pay the price in return for removing the federal government from education. Completely remove it.

  7. How about we have a deadbeat college student day and all rich demorats and hollywierd clowns pay for someones student debt. Kinda like those Christmas trees where you pick a kids wish list and buy them a present.

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