President Biden's student loan cancellation plan has caused a nationwide debate. Supporters like its potential to alleviate financial burdens while critics don’t like its high cost to taxpayers. A recent study shows the effects of Biden's proposal, revealing surprising findings about who will actually benefit the most.
The study done by the University of Pennsylvania's Penn Wharton Budget Model, The student loan cancellation plan will cost taxpayers $559 billion over the next decade. The study also shows that this initiative will give the greatest benefits from households earning more than $300,000 annually.
House Budget Committee Chairman Jodey Arrington (R-Texas) has shown his criticism of Biden's plan, saying it is unconstitutional and a political maneuver to get more votes. Arrington argues that impacting taxpayers, including those without college degrees, with the responsibility of high-income earners' student loan debts is unfair and financially irresponsible.
House Budget Committee Chairman Jodey Arrington (R-Texas) slammed Biden's student loan cancellation plan after Penn Wharton's findings, arguing that the policy is unconstitutional and part of the president's "quest to buy votes."
"In reality, his plan will shift the responsibility of paying for loans owed by high-income earners who freely incurred them onto the backs of all taxpayers, many of whom do not even have a college degree," Arrington said.
"[Biden's] administration is dead set on circumventing the Supreme Court, defying Congress, and saddling our country with more debt," the Texas Republican added.
The Biden administration has been looking for ways for student debt relief, including implementing income-driven repayment schemes like the Saving on a Valuable Education (SAVE) Plan. Even while facing legal challenges and opposition from Republican-led states, the Biden’s administration continues to try and remove millions of Americans burdened by student loan debt.
The Supreme Court's rejection of Biden's previous $430 billion student debt cancellation plan in 2023 underscores the legal hurdles facing the administration's efforts to address the student loan crisis. With ongoing lawsuits and political opposition, the future of Biden's student loan cancellation plan remains uncertain.
