On Wednesday, President Biden announced the biggest student loan relief of his tenure, forgiving up to $20,000 of debt per borrower.
This socialist spending measure of Biden triggered backlash from both Republican and Democratic lawmakers, who slammed the president for promoting his own political agenda at the expense of taxpayers’ interests.
Many economic experts also denounced the president for the student loan forgiveness program, which is likely to increase inflation in the upcoming months.
Democrats Criticized Biden on Massive Socialist Program
After Biden’s announcement to forgive student loans, Democratic Congressman Chris Pappas noted even if the student loan debt is troubling families, it should only be forgiven with the consent of Congress.
As per the US Constitution, Congress is the purse of the United States. This means all financial matters of the country should be decided by the legislative branch, instead of the White House.
Pappas further stated Biden’s way of canceling student loans increased the fiscal deficit of the country, adding there is no permanent solution to the student debt crisis.
In addition to that, Pappas argued Biden’s student loan forgiveness plan would ignore the root causes of the expensive education programs in the United States.
First elected Democrat I’ve seen panning Biden’s student debt relief plan: Rep. Chris Pappas, facing a tough reelect in New Hampshire.
“This announcement by President Biden is no way to make policy and sidesteps Congress and our oversight and fiscal responsibilities.’ pic.twitter.com/rcEf5SPvl0
— Kevin Robillard 🇺🇸 (@Robillard) August 24, 2022
Another Democrat, Lawrence Summers, who served as a director of the National Economic Council under the Obama administration, also pressed Biden for his poor response on the student loans issue.
According to Summers, Biden could have used the same money to help people who did not get an opportunity to go to college. Summers added Biden’s student loans plan would result in skyrocketing inflation, as it would increase the tuition fee significantly.
White House Defended Biden’s Spending Spree
As per the latest announcement by Biden, students who are earning less than $125,000 and received Pell Grants will be eligible for loan forgiveness up to $20,000.
Likewise, students who did not receive Pell Grants will have $10,000 in relief.
REPORTER: Is this unfair to people who paid their student loans or chose not to take out loans?
BIDEN: Is it fair to people who, in fact, do not own multi-billion-dollar businesses if they see one of these guys getting all the tax breaks? Is that fair? What do you think? pic.twitter.com/HA9LzLBMSC
— JM Rieger (@RiegerReport) August 24, 2022
While announcing the relief program, Biden noted he is trying to help middle-class Americans who are struggling with the aftershocks of the coronavirus pandemic.
Biden also claimed more than 90% of beneficiaries of student loan forgiveness earn less than $75,000 a year.
Meanwhile, Republican lawmakers hammered Biden for his socialist agenda that is expected to hurt the economy in the long run.
Senate Minority Leader Mitch McConnell asserted Biden is disrespecting individuals who worked hard to pay their student loans and saved for their children’s educations.
Likewise, students who volunteered in the US Armed Forces to avoid student loans are also ignored by Biden, McConnell added.
Although some GOP lawmakers called Biden’s actions illegal and an overreach of the executive branch, White House press secretary Karine Jean-Pierre claimed Biden has all authority to forgive loans unanimously during national emergencies like the coronavirus pandemic.