Biden was told NOT to cancel student loan debt by Janet Yellen and Jill – but Kamala pushed him to do it and the ‘$1TRILLION’ scheme was unveiled before it was properly costed
Treasury Secretary Janet Yellen argued that with inflation around a 40-year high, the cancellation of student loans could free up consumer spending and drive inflation higher, the New York Times reported.
The White House is silent on how President Biden’s decision to cancel between $10,000 to $20,000 in student debt for some Americans will be paid over the long run and whether it will drive tax bills higher even for average Americans.
Much of the discussion about the student debt handout has centered around its inflationary effects. But the gift will also have to be paid for, and that means taxpayers are likely on the hook for much of the principal and interest as the cost of the handout, estimated to be at least $300 billion and possibly as high as 600 billion, is dumped on top of the nearly $31 trillion in existing U.S. debt.
Fox News Digital asked the administration about a new analysis from the National Taxpayers Union Foundation estimating that the student loan handout will cost the average U.S. taxpayer more than $2,000. The fiscally conservative think tank, in particular, says the federal government will need to figure out a way in the future to make up for the forgiven loans, whether it be spending cuts or tax hikes. Much of it, the group predicts, will be via the latter.
The White House did not respond to questions about the report or if it was eyeing future tax hikes to make up for Biden’s student loan handout.