WASHINGTON – Today, Heritage Action, a conservative grassroots organization with two million grassroots activists, released a statement from Heritage Action Executive Director Jessica Anderson following the Biden administration’s announcement to “cancel” billions of dollars in student loans for college-educated elites just before midterm elections.
Biden’s student loan ‘forgiveness’ plan is an election year gimmick that will benefit the wealthy elite while simultaneously punishing responsible Americans, driving up inflation, and failing to address the real problems in higher education. With the wealthiest 40% of borrowers holding 60% of all loan debt, this announcement is an insult to middle- and working-class Americans who either did not attend college or responsibly paid off their loans.
Many of the problems in higher education are the result of failed subsidies and ineffective programs created by the federal government. Bailing out wealthy elites and encouraging more debt will not solve the problems of rising tuition costs and ill-equipped college graduates. Instead, our policy should promote personal financial responsibility, expand apprenticeship programs, and hold colleges and universities accountable.
Not only is this unfair and bad education policy, but its inflationary consequences will be serious and lasting. By delaying student loan payments throughout the pandemic, the Biden administration has already lost taxpayers $130 billion due to missed payments and accrued interest. Now, the Penn Wharton Budget model estimates that this debt ‘forgiveness’ plan could cost roughly $300 billion. As Americans struggle to fill up their gas tanks and put tanks and put food on the table, the last thing our economy needs is more reckless government spending.
The American people see through Biden’s transparent attempt to reverse his rapidly declining approval rates ahead of midterm elections. Come November, voters will have an opportunity to reject this agenda and replace the congressional leadership that has contributed to the past 18 months of crippling inflation, handouts to the wealthy, and broken promises.
BACKGROUND:
The Heritage Foundation: A Better, Fairer Way To Handle Student Loans
The Heritage Foundation: Whoops! Department of Education Makes $300 Billion Accounting Mistake on Student Loans
The Heritage Foundation: Biden’s Student Loan “Forgiveness” Plan Is a Raw Deal for Taxpayers