Biden's Student Loan Forgiveness Plan Faces Backlash, Critics Worry About 'Reckless' Inflation Impact
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The controversy over President Biden's college student loan debt forgiveness is still swirling a day after he announced his plan to cancel some of that debt for millions of Americans.
Supporters praised the move, with some wanting the White House to go even further. Opponents say the plan is unfair and will actually increase inflation.
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Critics say the expensive plan is simply transferring the cost from the students who borrowed the money, creating a new burden for other taxpayers. They're arguing the administration is just buying votes before the upcoming midterm elections.
Ty Kiatathikom, who studies law at The Ohio State University, is among millions of borrowers who will benefit from the loan forgiveness program. "It's not life-changing and it's not world-changing, but I'll take it," Kiatathikom said.
Under the president's plan, the government will cancel $10,000 for borrowers making less than $125,000 a year and $20,000 for those who received Pell grants.
"All this means people can start to finally crawl out from under that mountain of debt to get on top of their rent and utilities, to finally think about buying a home or starting a family or starting a business," President Biden said Wednesday.
Kiatathikom, who will be over $100,000 in debt by the time he graduates, says he'll take whatever help he can.
"I mean, $10K off it's not changing anything dramatically about my life situation, but it's going to be, it represents another extra month, maybe a year, however long of freedom that I get to enjoy, financial freedom that I get to enjoy post-graduation," Kiatathikom said.
Critics of the president's plan came out swinging.
"Of all the dumb things Joe Biden has done, this maybe the dumbest yet," argued Sen. Tom Cotton (R-AK).
Cotton is calling it a bailout, paid for by the American taxpayer.
"Think about how unfair this is for all the Americans who are harmed by this and who are now on the hook for hundreds of billions of dollars of other people's loans," Cotton told FOX News.
Jason Furman, former top economist for President Barack Obama, tweeted, "Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless."
And then there's the cost of the plan.
"How are we effectively going to pay for this?" asked Kim Jenerette of Cedarville University. "I think in terms of the inflation where we are at now it is only likely to increase."
One non-partisan group predicts the president's plan could cost American taxpayers $500 Billion over the next 10 years, and because he used executive action, rather than legislation, legal challenges to his loan forgiveness plan are expected.
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