<p>Those who benefit from President Joe Biden’s policy to cancel $10,000 in <a href="https://www.dailywire.com/topic/student-loans" target="_blank" rel="noopener">student debt</a> per borrower will not have to pay <a href="http://dailywire.com/topic/taxes" target="_blank" rel="noopener">taxes</a> on their forgiven loans thanks to a provision passed under the <a href="https://www.dailywire.com/topic/american-rescue-plan" target="_blank" rel="noopener">American Rescue Plan</a> last year.</p>
<p>The loan cancellation policy <a href="https://www.dailywire.com/news/breaking-biden-announces-details-of-student-loan-cancellation-plan">applies</a> to individuals with annual wages under $125,000. Although current law generally considers forgiven debt to be taxable income, student loans were exempted from such income-driven repayment plans through 2025 under “the rationale that tax burden arising from treating forgiven student debt as income partially undermines debt relief,” according to an <a href="https://taxfoundation.org/student-loan-debt-forgiveness/">analysis</a> from the Tax Foundation.</p>
<p>“It makes sense to have consistent rules in the tax code,” Tax Foundation federal policy analyst Alex Muresianu told The Daily Wire. “It doesn&#8217;t make sense to make forgiven student loan debt exempt from taxation while other forms of debt forgiveness typically count as taxable income.”</p>
<p>The treatment of student loan cancellation with respect to taxes differs from state to state, according to another <a href="https://taxfoundation.org/student-loan-debt-cancelation-tax-treatment/">report</a> from the Tax Foundation. While many states are following federal guidelines enacted under the American Rescue Plan, others — including Arkansas, California, Minnesota, and North Carolina — are prepared to tax canceled student debt.</p>
<p>The Biden administration’s loan cancellation plan has <a href="https://www.dailywire.com/news/paying-for-coastal-elites-to-get-their-phd-in-gender-studies-republican-lawmakers-blast-biden-student-debt-cancellation">received criticism</a> from <a href="https://www.dailywire.com/news/another-top-dem-comes-out-against-bidens-student-debt-cancellation">both sides of the aisle due</a> to its regressive nature. According to nonpartisan <a href="https://www.dailywire.com/news/bidens-student-loan-cancellation-would-cost-330-billion-and-largely-help-the-wealthy">analysis</a> from the University of Pennsylvania’s Wharton School, as much as 42% of the benefit from the policy would impact Americans earning more than $82,400 per year.</p>
<p>The Wharton analysts also implied that the loan cancellation will prompt students to “eventually reorganize their financing toward additional borrowing.” Although the policy could increase access for students who would not otherwise be able to afford higher-level degrees, universities themselves could capture the value “in the form of higher prices” as they raise tuition.</p>
<p>Indeed, Muresianu confirmed to The Daily Wire that student loan cancellation could distort market expectations as potential borrowers begin weighing the possibility of additional one-time cancellations in the future. “On paper, this wouldn&#8217;t change incentives to take on more debt, because the forgiveness is retroactive,” he remarked. “But in practice, student loan forgiveness suggests the federal government might forgive future student loan debt, which would incentivize greater borrowing.”</p>
<p>Nixing $10,000 of student loans per borrower would cost $298 billion in 2022 and a total of $329 billion by 2031, presuming that the policy is renewed each year, according to the nonpartisan Wharton analysis. A recent <a href="https://www.dailywire.com/news/clear-majority-of-americans-worried-about-more-inflation-as-biden-mulls-canceling-student-debt">survey</a> from CNBC shows that 59% of Americans are concerned that student debt cancellation “will make inflation worse.”</p>
<p>While the plan was still deliberated by White House officials, former Treasury Secretary and National Economic Council Director Lawrence Summers broke from his party to <a href="https://www.dailywire.com/topic/larry-summers">warn</a> that student debt cancellation would worsen soaring college costs. Average private university tuition is currently $43,775, while average in-state public university tuition is $11,631, according to <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">data</a> from U.S. News and World Report.</p>
<p>“Every dollar spent on student loan relief is a dollar that could have gone to support those who don’t get the opportunity to go to college,” Summers explained. “Student loan debt relief is spending that raises demand and increases inflation. It consumes resources that could be better used helping those who did not, for whatever reason, have the chance to attend college. It will also tend to be inflationary by raising tuitions.”</p>

<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>

Recipients Of Biden’s Student Loan Cancellation Plan Also Get A Tax Break

CONTINUE READING

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

American Rescue Plan

Biden Administration

Student Loan Cancellation

Taxes

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 —

Recipients Of Biden’s Student Loan Cancellation Plan Also Get A Tax Break