{"id":2056190,"date":"2023-10-05T05:44:01","date_gmt":"2023-10-05T09:44:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-real-cost-of-bidens-127-billion-student-loan-giveaway\/"},"modified":"2023-10-05T05:47:58","modified_gmt":"2023-10-05T09:47:58","slug":"the-real-cost-of-bidens-127-billion-student-loan-giveaway","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-real-cost-of-bidens-127-billion-student-loan-giveaway\/","title":{"rendered":"The true expense of Biden&#8217;s $127B student loan giveaway."},"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\">18<\/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%2Fthe-real-cost-of-bidens-127-billion-student-loan-giveaway%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=2056190&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--><h2>The Biden Administration&#8217;s Student Loan Forgiveness Sparks Controversy<\/h2>\n<p>The Biden administration recently announced a significant milestone in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrats-push-for-student-debt-forgiveness-would-cost-taxpayers-millions\/\" title=\"Democrats push for student debt forgiveness, would cost taxpayers millions\">student loan forgiveness<\/a>, claiming\u200d to have\u200c discharged a staggering $127 billion in federal student loans. However,\u2062 some conservatives argue that the true cost is much higher.<\/p>\n<p>On Wednesday, the Department of Education unveiled its latest effort, a $9 billion cancellation benefiting 125,000 borrowers \u200cthrough the Public Service Loan Forgiveness program \u200dand the Income Driven Repayment program.<\/p>\n<blockquote>\n<p>&#8220;The Biden-Harris administration&#8217;s\u2064 laser-like focus on \u200creducing red tape, addressing past administrative failures, and putting borrowers first have now resulted in a historic $127 billion in \u2064debt relief approved for nearly 3.6 million borrowers,&#8221; \u2062stated Secretary\u200c of Education Miguel Cardona.<\/p>\n<\/blockquote>\n<p>This figure\u200b encompasses multiple waves of\u2062 forgiveness, primarily achieved through adjustments to the\u2064 PSLF and IDR programs. Additionally, the administration settled a lawsuit with a group\u2062 of students who attended for-profit colleges, resulting \u200cin the cancellation of a significant number of loans.<\/p>\n<p>However,\u200d critics argue that\u200c the actual price tag of the administration&#8217;s student loan policies could be much higher. The American Enterprise Institute, a\u2062 conservative think tank, estimates \u2063the cost to exceed $316 billion. This \u2063calculation includes all the &#8220;forgone\u200b revenue&#8221; resulting from the \u2064administration&#8217;s policies.<\/p>\n<p>The \u2062institute defines &#8220;forgone revenue&#8221; as the total amount of money \u2062that student loan forgiveness \u2063has cost the federal\u200c government. Their analysis \u200bconsiders loan cancellations through the PSLF and IDR programs, as well as lost revenue from the suspension of student loan payments, which waived interest for over three years.<\/p>\n<p>Senator Bill Cassidy\u200b (R-LA), the ranking member of \u200dthe Senate Health, Education, Labor,\u2063 and Pensions committee, expressed \u200cconcern over the administration&#8217;s student loan forgiveness,\u2062 stating \u2064that it\u2062 is &#8220;costing the American \u200cpeople\u200c hundreds\u2063 of billions of dollars&#8221; and being implemented\u200c without congressional authority.<\/p>\n<blockquote>\n<p>&#8220;The department still\u200d refuses to\u200d share with Congress what statutory authority they are claiming to justify\u2063 this expenditure of taxpayer dollars,&#8221; Cassidy remarked.<\/p>\n<\/blockquote>\n<p>House Education and Workforce Committee Chairwoman Virginia \u200cFoxx (R-NC) also criticized the administration&#8217;s \u200clatest student loan\u2063 forgiveness,\u200d labeling it an &#8220;illegal charade.&#8221;<\/p>\n<blockquote>\n<p>&#8220;The Department of Education acts as if \u200chardworking taxpayers\u200d are both willing\u2062 and able to foot a tab worth billions of dollars that they do not owe,&#8221; Foxx stated. &#8220;Either the department is\u2062 blissfully ignorant\u2062 of its\u2064 own binding legal constraints, or it is purposefully evading Congress&#8217;s approval and pushing forward with its own illegal charade \u2014 the latter is the obvious answer. Hardworking taxpayers deserve much better than this.&#8221;<\/p>\n<\/blockquote>\n<p> <\/p>\n<h2> What \u2063is \u2064the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/thousands-of-marginalized-students-are-missing-from-virtual-learning\/\" title=\"\u2018Thousands\u2019 Of Marginalized Students Are Missing From Virtual Learning\">potential long-term consequence<\/a> of forgiving student loans, according\u200c to \u2063critics, \u2063and how does \u2064this create a moral hazard?<\/h2>\n<p><span>  Th a group\u200b of borrowers who alleged that they were misled about their eligibility for loan forgiveness. The settlement provided $1.3 billion in relief to approximately 72,000 borrowers.<\/p>\n<p>While the Biden administration&#8217;s efforts have been hailed by many as a step in\u200b the right direction, they have also sparked controversy among conservatives. Critics argue that the true cost of this loan forgiveness is much higher than the \u200d$127 billion figure touted by the administration. \u200dThey\u2063 point to the fact that forgiving student loans ultimately shifts the burden onto taxpayers.<\/p>\n<p>One of the main concerns raised by conservatives is that student loan forgiveness creates a moral hazard. By forgiving loans, the government is essentially rewarding those who have taken on significant debt without considering the long-term consequences. This, critics argue, sets a bad precedent and may encourage future borrowers to take on even more debt, knowing that it may be forgiven in the future.<\/p>\n<p>Another argument against student loan forgiveness is that it\u2064 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-real-cost-of-bidens-127-billion-student-loan-giveaway\/\" title=\"The true expense of Biden's 7B student loan giveaway.\">disproportionately benefits higher-income individuals<\/a>. Critics point out that those who attend elite schools and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-announces-9-billion-more-in-student-debt-cancellation\/\" title=\"Biden unveils B extra for student debt relief.\">pursue higher-paying careers<\/a> will benefit the most from loan forgiveness, while those who did not attend college or chose lower-paying careers will receive\u2064 little to no benefit. This, they argue, exacerbates existing\u2063 wealth inequalities\u200d in society.<\/p>\n<p>Conservatives also argue that student loan forgiveness fails\u2064 to address the root causes of the student debt crisis. They believe that instead of forgiving loans, \u200cthe focus \u2063should be on addressing \u200bthe rising cost of education and finding ways to\u2063 make college more affordable. Critics\u200b suggest that reforms\u200c such as increased transparency in college pricing, expanded access to scholarships, \u200band promoting vocational education as an alternative to college may be more effective in addressing the \u2062underlying issues.<\/p>\n<p>Despite these concerns, the Biden administration defends its approach to student loan forgiveness. \u200dThey argue that it provides immediate relief to borrowers \u200cwho are \u200bfacing financial hardship and helps stimulate the economy by freeing up funds that would otherwise\u2064 be used to\u200b repay loans. Additionally,\u200d they point out that the forgiveness programs target specific\u2064 groups such as <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-infrastructure-plan-a-boon-for-unions\/\" title=\"Biden\u2019s Infrastructure Plan a Boon for Unions\">public service workers<\/a> and\u2063 low-income borrowers, who may\u200b have been otherwise unable to\u200c repay their loans.<\/p>\n<p>The debate over student loan forgiveness is likely to continue as the Biden administration seeks to address the issue further. While there is no consensus on the best approach to tackling the student debt crisis, it is clear that finding\u2062 a solution that \u200cis fair and equitable for\u2062 both borrowers and taxpayers is crucial. As discussions unfold, it will be important to consider the\u2062 long-term impact of loan forgiveness\u200d and seek\u200d comprehensive reforms that\u200b address the root causes of the \u200bproblem.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Biden admin claims $127B student loan forgiveness, but conservatives argue it&#8217;s higher. Dept. of Education&#8217;s recent $9B cancellation for 125K borrowers sparks debate.<\/p>\n","protected":false},"author":1,"featured_media":2056191,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2056190","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2056190","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2056190"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2056190\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2056191"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2056190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2056190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2056190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}