As President Joe Biden considers canceling student loan debt, one expert is warning that the move would worsen inflation.
Earlier this week, Biden <a href="https://www.dailywire.com/news/biden-i-am-considering-dealing-with-some-debt-reduction-but-not-50000">confirmed</a> to reporters that he is “considering dealing with some debt reduction” — although not the $50,000 per borrower debt reduction favored by progressives. “I’m in the process of taking a hard look at whether or not there will be additional debt forgiveness, and I’ll have an answer on that in the next couple of weeks.”
In response, Committee for a Responsible Federal Budget President Maya MacGuineas said Wednesday that debt cancellation would contribute to rising prices.
“Student debt cancellation may be an extremely appealing political talking point, but it is not good policy,” she said in a <a href="https://www.crfb.org/press-releases/debt-cancellation-costly-regressive-and-inflationary">statement</a>. “It is costly, inflationary, poorly targeted, and fails to address the root problems in our higher education financing system.”
“Full debt cancellation would be a massive hand-out to rich doctors and lawyers, would worsen our inflation crisis, and would cost almost as much as the entire 2017 tax cuts. Even partial debt cancellation would be costly, regressive, and inflationary,” she continued. “Forgiving $10,000 per person of debt would cost as much as universal pre-K or a full extension of the expanded ACA subsidies.”
An earlier Committee for a Responsible Federal Budget analysis <a href="https://www.crfb.org/blogs/joe-bidens-preschool-and-k-12-education-plan">pinned</a> the cost of universal pre-K at $150 billion. As of quarter 2 in 2021, Americans <a href="https://www.cnbc.com/2021/09/09/america-has-1point73-trillion-in-student-debtborrowers-from-these-states-owe-the-most.html">owed</a> a whopping $1.73 trillion in student loans, according to a Federal Reserve estimate.
“Either the President is serious about reducing deficits and getting inflation under control, or he is not,” MacGuineas concluded. “The White House can’t have it both ways. We need to be focusing on a serious and effective agenda that prioritizes sound policies, not poorly targeted political giveaways.”
Beyond the White House, many leading Democrats are <a href="https://www.dailywire.com/news/biden-i-am-considering-dealing-with-some-debt-reduction-but-not-50000">embracing</a> the erasure of $50,000 or more in student loan debt — and have repeatedly pressured Biden to support their plans.
“We want our young people to realize that they can have a good future,” Senate Majority Leader Chuck Schumer (D-NY) said earlier in April. “One of the best, very best, top-of-the-list ways to do it is by canceling student debt, by getting rid of the $50,000, even going higher after that.”
In the meantime, Biden <a href="https://www.dailywire.com/news/biden-extends-pause-on-federal-student-loan-payments">extended</a> the student loan repayment moratorium through August 31. The freeze was originally slated to end on May 1.
A group of House Democrats sent a <a href="https://www.dailywire.com/news/house-democrats-push-biden-to-extend-student-loan-freeze-through-the-end-of-the-year">letter</a> to Biden in March asking Biden to extend the pause through the end of the year, and Sen. Elizabeth Warren (D-MA) <a href="https://www.dailywire.com/news/not-everything-has-to-go-through-congress-elizabeth-warren-wants-biden-to-be-more-authoritarian-axe-student-debt">insisted</a> that Biden has the authority to forgive all of the more than $1.6 trillion in student loans held by borrowers.

<script async src="https://www.instagram.com/embed.js"></script>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<script async src="https://www.tiktok.com/embed.js"></script><div data-widget-host="revcontent" data-pub-id="165152" data-widget-id="290588"></div><script src="https://delivery.revcontent.com/165152/290588/widget.js"></script>

Biden Canceling Student Debt Would Cause Even More Inflation, Expert Warns

Bud Light Sales Continue To Plummet, May Soon Lose Status As Number-One Beer

‘Profoundly Christian’: Former Head Of Anglican Church Presses British Government To Endorse Assisted Suicide

Ben Shapiro Reacts To Debt Limit Deal, Hits Both Democrats And Republicans Over Spending Habits

‘The Chosen’ Defends Pride Flag Spotted On Set: ‘Let The Show Speak For Itself’

Chick-Fil-A Faces Backlash As Their Diversity Efforts Resurface, Other Woke Brands Take Beating

North Korea Sentenced Two-Year-Old To Life In Prison After Family Caught With Bible: State Department

News

Democratic Party

Economy

Elizabeth Warren

Joe Biden

Student Loans

A video goes viral showing a baby being refused his mother by two gay "dads". This is just the tip of the iceberg, which is why we will have an important discussion today about surrogacy. 

Hour 1

The Matt Walsh Show

Ep. 1765 - This Video Is One Of The Worst Things I've Seen In A Long Time 

The Strait of Hormuz officially opens for business (kind of), the Pope makes “shocking” comments on immigration, and President Trump promises UFO disclosure at TPUSA. 


The Michael Knowles Show

Ep. 1956 -  Pope Leo's "SHOCKING" Immigration Comments EXPLAINED

A false miscreed has corrupted our leadership class.


The Andrew Klavan Show

Ep. 1275 - Dumb, Dumber and Progressive

President Trump announces a 10-day ceasefire between Lebanon and Israel, a murder-suicide involving former Democratic Lieutenant Governor Justin Fairfax shakes Virginia, and France and Britain hold a conference to secure the Strait of Hormuz – after the Iranian conflict ends. Get the facts first with Morning Wire.

- - -

Ep. 2738

- - -

Wake up with new Morning Wire merch: https://bit.ly/4lIubt3

- - -

Today's Sponsors:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text 'WIRE' to 83848 to learn more.

Pocket Hose - Text MORNING to 64000 to get a FREE pocket pivot and their 10-pattern sprayer with the purchase of ANY size Copper Head hose. Message and data rates may apply.

Morning Wire

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26 [Member Exclusive]

A ceasefire goes into effect between Israel and Lebanon, a tragic murder-suicide rocks Virginia, and Dairy Queen deploys AI in the drive-thru. Get the facts first with Evening Wire.
- - -
Ep. 2737
- - -
Wake up with new Morning Wire merch: https://bit.ly/4lIubt3 
- - -
Today’s Sponsor:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text “WIRE” to 83848 to learn more.


Evening Wire: Lebanon Ceasefire Begins & Murder-Suicide Rocks VA | 4.16.26

The Pendragon Cycle

Menu

— News —

Biden Canceling Student Debt Would Cause Even More Inflation, Expert Warns