On Friday, President Joe Biden announced that he would cancel the federal student debt of more than 277,000 Americans, equating to about $7.4 billion. This would bring the total of what is considered classical vote buying ahead of the November presidential elections to more than $153 billion, or forgiving the debt of 4.3 million people.
The majority of the 277,000 Americans who were forgiven federal student debt were enrolled in the government’s income-driven repayment plan, known as SAVE, which promises borrowers to forgive their debts after ten years of loan repayments.
The White House touted:
Since President Biden took office, his administration has approved over $54 billion in debt cancellation for 1.3 million borrowers enrolled in income-driven repayment plans, including the new SAVE Plan. This builds on additional actions the Biden-Harris Administration has taken to cancel debt for nearly 900,000 public service workers, 1.3 million borrowers cheated by their schools or borrowers covered by related court settlements, and nearly 550,000 borrowers with a total and permanent disability, including many veterans.
Earlier this week, the Biden administration announced new student loan plans that would begin canceling federal student debt up to $20,000 in interest for millions of borrowers and total loan forgiveness for millions more. Those who qualify for the government’s income-driven repayment plan would have the full balance of their unpaid interest forgiven, benefiting at least 25 million Americans.
“This latest round of debt cancellation comes on the heels of President Biden announcing new plans that, if implemented, would cancel student debt for over 30 million Americans when combined with actions the Administration has taken over the last three years,” the White House said.
Meanwhile, a seven-state coalition filed a new lawsuit on Monday challenging the “most generous ever” federal student loan repayment plan.
In the complaint filed in federal court in Missouri, the seven states argued that SAVE is another unlawful attempt to force taxpayers to shoulder the bill for others.
“Just last year, the [U.S.] Supreme Court struck down an attempt by the President to force teachers, truckers, and farmers to pay for the student loan debt of other Americans—to the enormous tune of $430 billion,” the states wrote in the complaint, explaining how the high court’s 6-3 majority explicitly ruled that the president shall not sidestep Congress in making a decision that could have a significant impact on the economy.
“Undeterred, the President is at it again, even bragging that the Supreme Court blocked it. They blocked it. But that didn’t stop me,'” the complaint added.
The administration’s latest student debt push is a sign of desperation. It comes as Bidenomics has been a gigantic failure and risks causing a sovereign debt crisis. Gold’s push to record highs is figuring this one out.
Now that rate cuts are off the table, interest on US debt – currently the second biggest government outlay at $1.1 trillion – will surpass social security and become the single biggest US expense before the end of 2024 at $1.6 trillion. pic.twitter.com/OQYjHhOks9
— zerohedge (@zerohedge) April 11, 2024
Also, inflation has been reaccelerating for months while nationwide gasoline pump prices inch closer to the politically sensitive $4 level. And if the inflation storm wasn’t enough, the nation has been swamped by a White House-facilitated illegal alien invasion as progressive cities burn under failed social justice reforms.
What’s worse, the Biden administration’s foreign policy has been an epic disaster as the world moves closer to World War III in Eastern Europe and the Middle East. Still, don’t forget about what’s happening in the Pacific.
This is why the White House must buy votes…
What better way to distract voters about the failures of this administration and the inflation storm crushing the working poor than to distract with socialist policies of ‘free stuff’ – such as canceling student loan debt…
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