Former President Donald Trump is shredding a move by President Joe Biden to cancel student loan debt for millions of Americans.
In a statement on Thursday, Trump wrote, “Joe Biden and the Radical Left Democrats have just orchestrated another election enhancing money grab, this time to the tune of $300,000,000,000 — and just like I predicted, it’s coming right out of the pocket of the working-class Americans who are struggling the most!”
“Crippling inflation, unaffordable energy prices, and WAR — all things that should never have happened. But if that wasn’t enough, now Americans are bailing out College Administrators who fleeced students, and those who opted for Degrees there was no way they could afford,” he continued.
Trump added, “America is a nation in decline, and the cliff into oblivion is within sight. Stop voting for Democrats! MAKE AMERICA GREAT AGAIN!”
On Wednesday, Biden unveiled his plan to cancel up to $20,000 in debt for borrowers who received Pell Grants, and $10,000 for those who did not — for Americans who earn less than $125,000 a year.
Additionally, his administration will issue a “final” extension of the pause on student loan payments through Dec. 31, 2022.
In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023.
— President Biden (@POTUS) August 24, 2022
I'll have more details this afternoon. pic.twitter.com/kuZNqoMe4I
A “fact-sheet” released by the White House reported that 90% of the benefit of the loan cancellations will “go to borrowers earning less than $75,000 a year.”
It also claims the move will “advance racial equity.”
Speaking at the White House on Wednesday, Biden said his action would mean that “nearly 45 percent can have their student debt fully cancelled.”
“That’s 20 million people who can start getting on with their lives,” he continued. “All of this means people can start to finally crawl out from under that mountain of debt to get on top of their rent and their utilities, to finally think about buying a home or starting a family or starting a business.”
An analysis by the Penn Wharton Budget Model estimates the move could cost the U.S. $300 billion in the first year. Meanwhile, Andrew Lautz, director of federal policy at the National Taxpayers Union, predicts it could cost the average taxpayer at least $2,000.
Trump was not the only one to criticize the move.
In an editorial published on Wednesday, The Washington Post’s editorial board called it a “regressive, expensive mistake.”
“Widely canceling student loan debt is regressive. It takes money from the broader tax base, mostly made up of workers who did not go to college, to subsidize the education debt of people with valuable degrees,” the Post stated.
It added, “Mr. Biden’s student loan decision will not do enough to help the most vulnerable Americans. It will, however, provide a windfall for those who don’t need it — with American taxpayers footing the bill.”
Biden’s student debt announcement comes months before the November midterm elections.
