The Epoch Times BY
It has been more than a week, and there is still no coherent answer out of the Biden administration to the question of who will pay for student loan forgiveness, which may cost Americans anywhere between $300–500 billion by the time it’s all done.
For background, the White House announced, on Aug. 24, 2022, that individual borrowers earning less than $125,000 ($250,000 for married couples) will be eligible for up to “$20,000 in debt cancellation to Pell Grant recipients … and up to $10,000 in debt cancellation to non-Pell Grant recipients.” Many voices on both sides of the political aisle have challenged the wisdom of the program, and asked the reasonable question of how this will be paid for.
Yet there has been no clear response from the U.S. government. What the Biden administration has said is that the loan forgiveness program will be fully paid for by deficit reduction. This is a nonsensical answer. It conflates an income item (reduced deficit spending, which is by definition spending money that the government doesn’t have) with a balance sheet item (increased national debt).
