{"id":1534107,"date":"2022-06-30T17:34:53","date_gmt":"2022-06-30T21:34:53","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1534107"},"modified":"2022-06-30T17:35:00","modified_gmt":"2022-06-30T21:35:00","slug":"schumer-slams-fat-cats-who-dont-want-to-cancel-student-loans","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/schumer-slams-fat-cats-who-dont-want-to-cancel-student-loans\/","title":{"rendered":"Schumer Slams \u2018Fat Cats\u2019 Who Don\u2019t Want To Cancel Student Loans"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fschumer-slams-fat-cats-who-dont-want-to-cancel-student-loans%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1534107&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Senate Majority Leader <a href=\"https:\/\/www.dailywire.com\/topic\/chuck-schumer\">Chuck Schumer<\/a> (D-NY) argued last week that <a href=\"https:\/\/www.dailywire.com\/topic\/student-loans\">student loan<\/a> cancellation is \u201cnot a problem that concerns the wealthy.\u201d<\/p>\n<p>The comment came as Democratic lawmakers continue to evaluate policies that would scrap large amounts of student debt. The <a href=\"http:\/\/dailywire.com\/topic\/biden-administration\">Biden administration<\/a> is reportedly considering a plan to cancel $10,000 in student loans per borrower, yet Schumer <a href=\"https:\/\/www.dailywire.com\/news\/this-cpac-footage-is-nuts-progressives-blast-pelosi-for-saying-student-debt-forgiveness-is-a-bad-idea\">argued<\/a> last July that \u201call President Biden has to do is flick his pen\u201d rather than passing legislation through Congress to erase up to $50,000 per borrower.<\/p>\n<p>\u201cLet\u2019s dispel one awful myth right here: This is not a problem that concerns the wealthy or the Ivy League,\u201d Schumer <a href=\"https:\/\/www.cnbc.com\/2022\/06\/22\/bidens-mind-is-open-on-student-loan-forgiveness-schumer-says-.html\">said<\/a> last week. \u201cAll of these fat cats, and people who never want to see help for working people and poor people come up with these myths.\u201d<\/p>\n<p>In an interview with The Daily Wire, Cato Institute policy scholar Neal McCluskey explained that debt cancellation would be \u201cregressive\u201d \u2014 benefiting wealthy borrowers to a greater extent than those in other income brackets.<\/p>\n<p>\u201cWealthier people are more likely to go to college and in particular, more likely to go to graduate school than lower-income families,\u201d McCluskey said, noting that <a href=\"https:\/\/www.cnbc.com\/2021\/07\/16\/graduate-students-owe-around-50percent-of-all-student-debt.html\">roughly half<\/a> of student debt was incurred by the 25% of borrowers seeking graduate degrees.<\/p>\n<p>Likewise, many debt cancellation policies fail to consider the human capital investment that student loans represent.<\/p>\n<p>\u201cIf you estimate the amount that people will end up earning as a result of the degrees, you can see that people who take on student debt are really going to end up well off on average,\u201d McCluskey remarked. \u201cThe average person with a bachelor\u2019s degree makes about $1.2 million more over their lifetime than someone with just a high school diploma. If you go to somebody with a professional degree \u2014 like a medical degree or a law degree \u2014 they end up making about $3 million more over their lifetime than somebody with just a high school diploma.\u201d<\/p>\n<p>McCluskey pointed to Brookings Institution <a href=\"https:\/\/www.brookings.edu\/research\/student-loan-forgiveness-is-regressive-whether-measured-by-income-education-or-wealth\/\">data<\/a> showing that one-third of student debt is owed by the wealthiest 20% of households, while 8% is owned by the bottom 20%. \u201cWealthy people do take on debt, and a lot of that debt is for graduate school,\u201d he added.<\/p>\n<p>McCluskey said that without meaningful reforms to the federal student aid process, action to cancel debt \u2014 especially via executive order \u2014 would only serve to raise costs.<\/p>\n<p>\u201cIt would clearly have negative, unintended consequences going forward of encouraging even more rampant price inflation than we\u2019ve seen in college over the last several decades,\u201d he said. \u201cAnybody going forward will say, \u2018You know, I should really be willing to take out a lot more debt because how could the federal government cancel all this debt before but then tell me they\u2019re not going to do it?\u2019 And that also means that colleges have a greater incentive to increase their prices, because they say, \u2018There\u2019s no way the federal government will not forgive the debt of the students who we take on.\u2019\u201d<\/p>\n<p>Between 2002 and 2022, average tuition and fees at private universities increased by 144%, according to data from <a href=\"https:\/\/www.usnews.com\/education\/best-colleges\/paying-for-college\/articles\/2017-09-20\/see-20-years-of-tuition-growth-at-national-universities\">U.S. News and World Report<\/a>. Average private university tuition is currently $43,775, while average in-state public university tuition is $11,631.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Senate Majority Leader Chuck Schumer (D-NY) argued last week that student loan cancellation is \u201cnot a problem that concerns the wealthy.\u201d The comment came as Democratic lawmakers continue to evaluate policies that would scrap large amounts of student debt. The Biden administration is reportedly considering a plan to cancel $10,000 in student loans per borrower, &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1534152,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1534107","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1534107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1534107"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1534107\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1534152"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1534107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1534107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1534107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}