Karine Jean-Pierre made a weird and incorrect claim when she asserted that the Biden college loan theft and debt scheme assists 90 percent of Americans with annual incomes of less than $75,000.
Incorrect on both counts. First, the minimum acceptable pay has been increased to 125,000 dollars, not 75,000. Second, Penn Wharton estimates that the benefits will be distributed to the top 60 percent of income and will have a total cost of approximately $980 billion over the next ten years.
Biden Press Secretary Karine Jean-Pierre bizarrely & incorrectly claims Biden’s student loan bailout is "going to help 90%, 90%, of Americans that is making less than $75,000."
The Penn Wharton Budget Model says close to 70% of the benefits are going to the top 60% of earners. pic.twitter.com/f1SSCKqqq3
— RNC Research (@RNCResearch) August 26, 2022
A new study conducted by Penn Wharton estimates that the cost of canceling student loan debt would range between $300 billion to $980 billion over the course of ten years. These estimates come from a new analysis. Borrowers that fall into the top 60 percent of the income distribution receive around 70 percent of the debt relief that is distributed.
It is estimated that households in the top 60 percent of the income distribution receive between 69 and 73 percent of the debt relief that is provided.
That does not take into account the individuals who are eligible for a $20,000 tax credit (theft).
Cancelling debt would also add to the nation's already enormous national debt, which reached a record high of $30 trillion last year. The debt would be added to if it were canceled.
Putting more money back into the wallets of borrowers, according to some detractors, such as the previous Secretary of the Treasury, Larry Summers, might sustain inflation at a painfully high level throughout the course of the following months and years.
"I hope the Administration does not contribute to inflation macroeconomically by offering unreasonably generous student loan relief or microeconomically by encouraging college tuition increases," Summers, a professor at Harvard University, wrote in a series of tweets this week. Summers's comments were made in response to a question about whether or not the government should encourage higher education costs.
Biden also made an announcement on Wednesday that he plans to extend the moratorium on payments for federal student loans, which was previously scheduled to conclude at the end of the month. At the beginning of the coronavirus pandemic in March 2020, the freeze was implemented, and at the same time, the interest rate was lowered to 0%.
The preceding is a summary of an article that originally appeared on INDEPENDENT SENTINEL.
