Joe Biden expected to announce $10,000 student loan forgiveness program Wednesday costing American taxpayers an estimated $300 billion

[Teh One Who Knocks]

By Bradford Betz | Fox News


https://i.imgur.com/ojskl8bh.jpg

President Joe Biden is expected to announce a much-anticipated loan forgiveness program Wednesday, sources familiar with the plan told the Associated Press.

Americans are poised to foot a nearly $300 billion deal with President Biden’s expected announcement on Wednesday to forgive thousands in federal student loan debt and extend a repayment pause to next year.

According to the Penn Wharton Budget Model, a one-time maximum debt forgiveness of $10,000 for borrowers who make less than $125,000 will cost around $300 billion for taxpayers.

The cost increases to around $330 billion if the program is continued over the standard 10-year window, according to the figures.

The precise details of Biden's plan were being kept to an unusually small circle within the Biden administration and were still not finalized on the eve of the announcement, sources told the Associated Press.

Progressives and liberals have hounded the president to provide broader relief to hard-hit borrowers, while moderates and Republicans have questioned the fairness of any widespread forgiveness.

The nation's federal student debt now tops $1.6 trillion after ballooning for years. More than 43 million Americans have federal student debt, with almost a third owing less than $10,000 and more than half owing less than $20,000, according to the latest federal data.

Pandemic-era payment freezes were set to end on Aug. 31.

On the campaign trail, Biden proposed canceling up to $10,000 per borrower, with no mention of an income cap. But the president has narrowed that promise in recent months by embracing the income limit as soaring inflation took a political toll and as he aimed to head off political attacks that the cancellation would benefit those with higher take-home pay.

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According to a recent analysis from the Committee for a Responsible Federal Budget (CRFB), the $10,000 forgiveness plan would undermine the recently passed Inflation Reduction Act by consuming nearly 10 years of deficit reduction and wipe out disinflationary benefits.

"[D]ebt cancellation would boost near-term inflation far more than the IRA will lower it," CRFB wrote in its analysis. "$10,000 of debt cancellation could add up to 15 basis points up front and create additional inflationary pressure over time."

The Associated Press contributed to this report.

[DemonGeminiX]

:dumbfounded:

[Teh One Who Knocks]

And this coming less than 3 months before the elections is just a coincidence, right?

[DemonGeminiX]

Nope.

[PorkChopSandwiches]

:facepalm:

[Teh One Who Knocks]

By Brooke Singman | Fox News


President Biden announced Wednesday that he will cancel $10,000 of federal student loan debt for certain borrowers making less than $125,000 per year, and up to $20,000 for Pell Grant recipients, while extending the pause on federal student loan payments through the end of the year.

"In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023," Biden tweeted.

Biden is expected to give remarks on the plan Wednesday afternoon.

The nation's federal student debt now tops $1.6 trillion after ballooning for years. More than 43 million Americans have federal student debt, with almost a third owing less than $10,000 and more than half owing less than $20,000, according to the latest federal data.

The national debt, according to the Treasury Department, currently sits at $30.7 trillion.
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Biden said his administration will forgive student loan debt up to $20,000 for borrowers who attended college on Pell Grants; and $10,000 for borrowers who did not receive Pell Grants. Biden said the forgiveness "only applies to those earning less than $125,000."

Biden also said that borrowers with undergraduate student loans are able to "cap repayment at 5% of your monthly income."

Pandemic-era payment freezes were set to end on Aug. 31, but Biden on Wednesday also extended the payment pause "one final time through Dec. 31, 2022."

According to a Penn Wharton Budget Model, a one-time maximum debt forgiveness of $10,000 for borrowers who make less than $125,000 will cost around $300 billion for taxpayers.

[DemonGeminiX]

I had the Pell when I was in college. That and HOPE and later, a grant from the National Science Foundation. Actually when the NSF grant kicked in, it covered everything, so HOPE and Pell went away. It was nice not having to worry about anything except maintaining a GPA above 3.25 during my senior year. Mine was 3.70, I got a few B's in shit I didn't care about at the time. I probably could have failed a class and still maintained that GPA requirement.

[DemonGeminiX]

"Forgiveness only applies to those earning less than $125,000."

So basically everybody. I don't know anybody graduating or that has graduated with a 4 year degree that makes anywhere near $125,000 per year.

[perrhaps]

Jokes on me, I guess.

[perrhaps]

And this coming less than 3 months before the elections is just a coincidence, right?

Like Kemp's payments in Georgia. Bribe season has officially started.

[lost in melb.]

Like Kemp's payments in Georgia. Bribe season has officially started.

*googles*





:giggle:

[Teh One Who Knocks]

Like Kemp's payments in Georgia. Bribe season has officially started.

Our governor in Colorado did the exact same thing. He gave back money early owed to taxpayers by law that we would have filed for on our state taxes next tax season and pretended it was all him doing it. In all the press releases he omitted the fact that it was money due back to taxpayers anyway. But he also tweaked the law this year so that even taxpayers that wouldn't have received much money/any money because of their income so that everyone that filed a tax return this year got $750 back. So those of us that would have been due more got screwed so that people that should have received smaller amounts or none at all got way more than was due them.

With the fact that a significant portion of the general public all full on retards and actually think the governor is giving them "free" money, it works out perfectly for the governor who happens to be up for re-election this fall. But hey, it's all for the votes, so that makes it okay.

[Teh One Who Knocks]

By Louis Casiano | Fox News


https://i.imgur.com/rlwmr67h.jpg

The White House on Wednesday declined to say who will be on the hook for a massive $300 billion student loan forgiveness plan announced by President Biden moments earlier.

During a news briefing, White House Press Secretary Karine Jean-Pierre outlined the benefits of the plan but skirted questions about who will pay for it when asked by Fox News correspondent Peter Doocy.

"When you forgive debt, you're not just disappearing debt, so who is paying for this?" Doocy asked.

Jean-Pierre replied that once the pause on student loan payments is lifted at the end of 2022, the funds will "offset a lot of what we're doing as well."

"When you think about the $4 billion that's going to go back into, as revenue, back into this process as folks paying their college tuition, that matters as well," she said. "We're doing this in a smart way. We're doing this in a way that's going to be effective."

Doocy further pressed Jean-Pierre on who will be on the hook for the tab.

"But somebody's paying for it. Who?" he asked but received no direct answer.

Biden announced Wednesday that he will deliver on a campaign "commitment" to cancel $10,000 of federal student loan debt for certain borrowers making less than $125,000 per year, and up to $20,000 for Pell Grant recipients, while extending the pause on federal student loan payments through the end of the year.

The president said during remarks at the White House that by resuming student loan payments that have been frozen during the COVID pandemic "at the same time as we provided targeted relief," his administration is taking an "economically responsible course."

"As a consequence, about $50 billion a year will start coming back into the Treasury because of the resumption of debt," Biden said, adding that experts "agree that these actions taken together will provide real benefits for families without meaningful effect on inflation."

[Teh One Who Knocks]

1562456098136735744

[PorkChopSandwiches]

Its all funny to them

[lost in melb.]

It's the most stupid policy I've ever heard of. Bizarre.

[PorkChopSandwiches]

It's the most stupid policy I've ever heard of. Bizarre.

Stupidest policy you have heard of so far

[Teh One Who Knocks]

https://i.imgur.com/1fcpBWvl.jpeg

[PorkChopSandwiches]

https://scontent-lax3-2.xx.fbcdn.net/v/t39.30808-6/300221207_605044500976336_2051718431754470562_n.jp g?_nc_cat=1&ccb=1-7&_nc_sid=8bfeb9&_nc_ohc=FsQx3d3v79AAX8jhWnj&_nc_ht=scontent-lax3-2.xx&oh=00_AT_MbtOoE0V19aE4b0FulKQQmj79m_pJkF8aYoVasl6Z Gg&oe=630BFF75

[Teh One Who Knocks]

By Anders Hagstrom | FOXBusiness


https://i.imgur.com/F43AjDx.png

President Biden's federal student loan forgiveness plan will cost U.S. taxpayers between $440 billion and $600 billion over the next 10 years, according to the Committee for a Responsible Federal Budget.

The Committee for a Responsible Federal Budget settled on a central estimate of approximately $500 billion, according to a Thursday report.

Biden announced up to $20,000 in federal student loan forgiveness on Wednesday. Students who attended college using federal Pell Grants qualify for the $20,000, but those who did not use the program qualify for $10,000 in forgiveness. The handout only applies to borrowers making less than $125,000 per year.

More than 43 million Americans have federal student debt, amounting to a total of more than $1.6 trillion. Nearly one third of those owe less than $10,000 and more than half owe less than $20,000, according to the latest federal data.

Critics have argued Biden's program will contribute to already record-high levels of inflation in the U.S.

Senate Minority Leader Mitch McConnell argued the program is "yet another way to make inflation even worse, reward far-left activists, and achieve nothing for millions of working American families who can barely tread water."

Biden, however, touted the program as a fulfillment of his campaign promise to cancel $10,000 in student debt. Democrats had initially stated that the White House lacks the authority to unilaterally cancel debt and that the president must go through Congress.

"People think that the President of the United States has the power for debt forgiveness. He does not. He can postpone, he can delay, but he does not have that power. That has to be an act of Congress," House Speaker Nancy Pelosi said in 2021.

Biden himself doubted his authority to cancel debt through executive order last year.

"I don’t think I have the authority to do it by signing the pen," he said in February.

[DemonGeminiX]

Like Kemp's payments in Georgia. Bribe season has officially started.

I don't mind. I like Kemp and it's my money anyway. I can spend it better than Kemp and the Georgia legislature can.

[deebakes]

this is so dumb

[perrhaps]

By Louis Casiano | Fox News


https://i.imgur.com/rlwmr67h.jpg

The White House on Wednesday declined to say who will be on the hook for a massive $300 billion student loan forgiveness plan announced by President Biden moments earlier.

During a news briefing, White House Press Secretary Karine Jean-Pierre outlined the benefits of the plan but skirted questions about who will pay for it when asked by Fox News correspondent Peter Doocy.

"When you forgive debt, you're not just disappearing debt, so who is paying for this?" Doocy asked.

Jean-Pierre replied that once the pause on student loan payments is lifted at the end of 2022, the funds will "offset a lot of what we're doing as well."

"When you think about the $4 billion that's going to go back into, as revenue, back into this process as folks paying their college tuition, that matters as well," she said. "We're doing this in a smart way. We're doing this in a way that's going to be effective."

Doocy further pressed Jean-Pierre on who will be on the hook for the tab.

"But somebody's paying for it. Who?" he asked but received no direct answer.

Biden announced Wednesday that he will deliver on a campaign "commitment" to cancel $10,000 of federal student loan debt for certain borrowers making less than $125,000 per year, and up to $20,000 for Pell Grant recipients, while extending the pause on federal student loan payments through the end of the year.

The president said during remarks at the White House that by resuming student loan payments that have been frozen during the COVID pandemic "at the same time as we provided targeted relief," his administration is taking an "economically responsible course."

"As a consequence, about $50 billion a year will start coming back into the Treasury because of the resumption of debt," Biden said, adding that experts "agree that these actions taken together will provide real benefits for families without meaningful effect on inflation."

HINT: We already paid for this.

[perrhaps]

I don't mind. I like Kemp and it's my money anyway. I can spend it better than Kemp and the Georgia legislature can.

True dat, but I'm just referring to the timing.

PS. Can you loan me $100.00 so I can adequately tip a barista? I'll either pay you back over 20 years, or maybe just ask you to forgive it.

[Teh One Who Knocks]

By Haris Alic | Fox News


https://i.imgur.com/AbUbR3v.png

The White House is silent on how President Biden's decision to cancel between $10,000 to $20,000 in student debt for some Americans will be paid over the long run and whether it will drive tax bills higher even for average Americans.

Much of the discussion about the student debt handout has centered around its inflationary effects. But the gift will also have to be paid for, and that means taxpayers are likely on the hook for much of the principal and interest as the cost of the handout, estimated to be at least $300 billion and possibly as high as 600 billion, is dumped on top of the nearly $31 trillion in existing U.S. debt.

Fox News Digital asked the administration about a new analysis from the National Taxpayers Union Foundation estimating that the student loan handout will cost the average U.S. taxpayer more than $2,000. The fiscally conservative think tank, in particular, says the federal government will need to figure out a way in the future to make up for the forgiven loans, whether it be spending cuts or tax hikes. Much of it, the group predicts, will be via the latter.

The White House did not respond to questions about the report or if it was eyeing future tax hikes to make up for Biden's student loan handout.

Administration officials, while not addressing how the added spending will be offset, have argued in recent days that the national deficit is already plunging under Biden's watch.

"We actually achieved $350 billion in deficit reduction, and this year it's projected, by the end of the fiscal year, to be a $1.7 trillion deficit reduction," said White House press secretary Karine Jean-Pierre at the daily White House briefing.

Administration officials have also claimed that the cost of Biden's student loan handout cannot be fully accounted for since it's unclear how many borrowers will opt to take advantage of the opportunity. They say that it remains unclear how many individuals would have paid back the full amount of their loans over time anyway.

"All of this as when it comes to costs will also depend on how many of the loans canceled were actually expected to be repaid," said Jean-Pierre.

The National Taxpayers Union Foundation disagrees, however. The group issued an analysis earlier this week estimating that if the student loan handout adds nearly $330 billion to the deficit over the next decade, as a budget model by the University of Pennsylvania's Wharton School of Business asserts, the average cost per taxpayer will be $2,085. But that could be on the low end. The Committee for a Responsible Budget puts the cost of the handouts at between $440 billion and $600 billion.

When broken down, the data showed the sum to be significantly more for higher income brackets but still sock it to the middle class.

For instance, according to the group, taxpayers making between $1 and $50,000 annually would pay more than $158. The cost for those making between $50,000 and $75,000 is estimated to be $866, and $1,477 for individuals making $75,000 and $100,000, while those making between $100,000 and $200,000 would face costs upwards of $3,150. Earners pulling down $200,000 to $500,000 would pay nearly $9,950.

"Some may dispute that taxpayers bear the cost of canceling student debt. But the $329 billion cost of student debt cancellation would be $329 billion previously borrowed from the federal government and not returning to the Treasury," the organization's analysis states. "Policymakers will need to make up for that gap in the future with government spending cuts, tax increases, more borrowing, or some combination thereof."

https://i.imgur.com/jBs0cdH.png

Biden announced Wednesday plans to forgive $10,000 in student debt for borrowers making less than $125,000 annually. Pell Grant recipients will receive $20,000 in debt handouts, provided their income is below the $125,000 threshold. Administration officials claim that no individual or household in the top 5% of earners will benefit from the decision.

The White House is also extending a pause on student loan payments through the end of the year. Coinciding with the announcement is a new Education Department proposal that allows borrowers to cap undergraduate loan repayment at 5% of their monthly income, adding to the cost to taxpayers of the handout.

"Using the authority Congress granted the Department of Education, we will forgive $10,000 in outstanding federal student loans," Biden said in announcing the decision. "In addition, students who come from low-income families which allowed them to qualify to receive a Pell Grant will have their debt reduced $20,000."

Susan Rice, the director of the White House Domestic Policy Council, has said that student loans obtained after June 30 of this year will be ineligible for the student loan handout.

[DemonGeminiX]

https://www.youtube.com/watch?v=SOCFU3vwTXc

[DemonGeminiX]

True dat, but I'm just referring to the timing.

PS. Can you loan me $100.00 so I can adequately tip a barista? I'll either pay you back over 20 years, or maybe just ask you to forgive it.


https://www.youtube.com/watch?v=EmM-owvWAdc

[Teh One Who Knocks]

By Jessica Chasmar | Fox News


https://i.imgur.com/dhtHNr6l.jpg

President Biden still hasn’t explained how he plans to pay for the cancelation of thousands of dollars of debt for student loan borrowers, which could cost taxpayers upwards of $500 billion.

Despite unveiling the policy last week, administration officials have yet to clarify how the proposal will be paid for in the long term. Since the current plan calls for the government to forgive the debt, that means taxpayers are likely on the hook for much of the principal and interest is dumped on top of the nearly $31 trillion in existing U.S. debt.

Fox News Digital has reached out to the White House multiple times inquiring how the Biden administration plans to pay for the student loan handout or whether it was eyeing future tax hikes to pay for it. On Sunday, a spokesperson responded by pointing to comments Friday by Bharat Ramamurti, deputy director of the National Economic Council, who claimed the plan is "fully paid for" through deficit reduction.

"It is paid for and far more by the amount of deficit reduction that we’re already on track for this year," Ramamurti said. "Like I said, we’re on track for $1.7 trillion in deficit reduction this year. That means, practically speaking, compared to the previous year, 1.7 trillion more dollars are coming into the Treasury than are going out. And we’re using a portion of that — a very small portion of it — to provide relief to middle-class families, consistent with the president’s plan."

Biden announced last Wednesday he plans to forgive $10,000 in student debt for borrowers making less than $125,000 annually. Pell Grant recipients will receive $20,000 in debt handouts, provided their income is below the $125,000 threshold. Administration officials claim that no individual or household in the top 5% of earners will benefit from the decision.

The White House is also extending a pause on student loan payments through the end of the year. Coinciding with the announcement is a new Education Department proposal that allows borrowers to cap undergraduate loan repayment at 5% of their monthly income, adding to the cost to taxpayers of the handout.

The National Taxpayers Union Foundation issued an analysis earlier this week estimating that if the student loan handout adds nearly $330 billion to the deficit over the next decade, as a budget model by the University of Pennsylvania's Wharton School of Business asserts, the average cost per taxpayer will be $2,085.

But that could be on the low end. The Committee for a Responsible Budget (CFRB) puts the cost of the handouts at between $440 billion and $600 billion.

"Over time, as loans don’t get repaid, the federal government will lose money that might otherwise have been paid back," the Wall Street Journal noted.

CFRB said in its report that the federal government will need to figure out a way in the future to make up for the forgiven loans, whether it be spending cuts or tax hikes. Much of it, the group predicts, will be via the latter. The group also said the plan will likely cost more than double the amount saved through the Democrats’ recently passed Inflation Reduction Act.

White House press secretary Karine Jean-Pierre gave a significantly lower estimate Thursday, saying the plan could cost $24 billion per year.

"Assuming that 75% of folks who take this on, the President's student loan cancellation plan, and you look at the average monetary, cash flow on that, it's going to be about $24 billion per year," she told CNN.

Republicans and Democrats alike have blasted Biden's plan.

Sen. Marco Rubio, R-Fla., on Saturday's "One Nation with Brian Kilmeade" blasted the handout as "illegal."

"This is illegal. The president doesn't have the authority to do this. He's not an emperor. He can't just with the stroke of a pen cancel $300-$400 billion worth of student loans," Rubio said. "It's unfair. Eighty-five percent of the people in this country do not have a student loan. They either had one and paid it or they don't have one, and that 85% is gonna pay for the 15% who got a tangible benefit."

Rep. Tim Ryan, D-Ohio, who is running for Senate in Ohio against Republican nominee J.D. Vance, argued Sunday that tax cuts are a better way of handling America's student debt problem than outright handouts.

Ryan said on CNN that the handout sent "the wrong message" in that it implied only student debt holders were struggling with the current economy.

"There’s a lot of people out there making 30, 40 grand a year that didn’t go to college. And they need help as well, which is why I’ve been proposing a tax cut for working people that will affect everybody," he said.

Paul Begala, a former adviser to Bill Clinton, criticized the handout on Sunday during CNN's "State of the Union," saying it was "terrible policy."

"Well it's bad policy as well as bad politics. For that amount of money, you could fund free pre-k for every 3 and 4-year-old for 10 years. You can do a lot more good for poor people, communities of color and the underprivileged by doing pre-k. You could forgive all medical debt, which unlike student debt is not freely entered into," Begala said, adding that he was a "progressive."

[lost in melb.]

Perhaps they can forgive Australian loans :-k

[Teh One Who Knocks]

By Thomas Catenacci | FOXBusiness


https://i.imgur.com/OTj934U.png

Ten of the top U.S. universities have endowments worth more than $200 billion even as President Biden plans to cancel up to $20,000 of student loan debt for many Americans.

The list of 10 universities — which include elite institutions like Harvard and Yale University — have endowments totaling $209.8 billion, according to fiscal year 2020 data compiled by U.S. News & World Report. While such institutions rack up massive endowments, though, many of their graduates will receive a $10,000 or $20,000 taxpayer handout courtesy of the Biden administration.

"Harvard has a $42 billion endowment. Yale’s is $31 billion," Matt Rinaldi, the chairman of the Texas Republican Party, tweeted Tuesday. "But Biden will tax truck drivers and plumbers to pay the student loans that built those empires."

In addition to Harvard and Yale, other top universities like Stanford, Princeton and Massachusetts Institute of Technology have endowments worth between $18 billion and $29 billion. University of Pennsylvania, Texas A&M, Notre Dame, University of Michigan and Columbia have endowments worth between $11 billion and $15 billion.

President Biden's plan to give out at least $10,000 to many individuals with student loan debt, meanwhile, has an estimated price tag of about $330 billion.

The cumulative federal student loan debt has skyrocketed to $1.6 trillion for 45 million borrowers. While Biden's plan would chip away at that figure using tax revenue, total student loan debt will return to $1.6 trillion in just five years, according to the Committee for a Responsible Federal Budget.

"This plan offers targeted debt relief as part of a comprehensive effort to address the burden of growing college costs and make the student loan system more manageable for working families," the White House said Wednesday in a statement.

Under the plan, individuals earning less than $125,000 per year, or $250,000 jointly, are eligible to receive $10,000 in relief, while Pell Grant recipients are able to receive $20,000. The Biden administration also pushes the moratorium on student loan payments to January 2023 and allows borrowers to cap debt payments at 5% of their income.

Critics of the announcement argued Wednesday that it would force the middle class to foot the bill for a handout largely benefiting wealthy graduates.

"A bunch of hardworking people are going to pay for something to give away money to some of the most privileged people in America, at the expense of increased inflation and a deeper recession when the government gets around to taking inflation seriously," Ted Frank, the director of litigation at the free-market public-interest law firm Hamilton Lincoln Law Institute, tweeted.

Charles C.W. Cooke, a writer for National Review, characterized the move as a "contemptuous, abusive, unbelievably expensive shot in the dark."

"The problems in the system aren’t addressed," he wrote Wednesday. "The colleges, and their endowments, are left unmolested. American culture’s increasingly credentialist presumptions aren’t altered."