The Democrat’s latest plan to make people like them is to forgive a chunk of student loan debt, but while it sounds really nice on the surface, it’s probably not going to play out well for the economy or for the voters.
As RedState previously reported, the plan was to have up to $10,000 in debt canceled for people making less than $125,000 a month. Pell Grant users will be forgiven $20,000.
Republicans have begun explaining how this isn’t exactly a good thing for anyone, including Democrats. Not only will it not please Democrats who would have expected more to be forgiven, it definitely won’t please Republicans who just see this correctly as debt reallocation, not forgiveness. At the end of the day, you and I will be footing this bill, not the person who agreed to take on the debt in the first place.
Moreover, this is going to anger those who have already spent a good portion of their earnings to pay off student debt over time. They will be receiving no refunds while others reap benefits. It’s not fair, and it’s not likely to play well with anyone but the most staunch of leftists.
In fact, the plan is so bad that even one Democrat has openly begun speaking out against it.
Congressman Chris Pappas of New Hampshire released a statement that tore it to pieces.
Pappas acknowledged that student loan debt was “crushing families” but noted that Biden sidestepping congress to control the national purse is no way to go about doing this.
“Any plan to address student debt should go through the legislative process, and it should be more targeted and paid for so it doesn’t add to the deficit,” wrote Pappas.
He also noted that there is no plan to address the root of the problem, which is the bloated expense of higher education which limits educational choices for many Americans.
First elected Democrat I’ve seen panning Biden’s student debt relief plan: Rep. Chris Pappas, facing a tough reelect in New Hampshire.
“This announcement by President Biden is no way to make policy and sidesteps Congress and our oversight and fiscal responsibilities.’ pic.twitter.com/rcEf5SPvl0
— Kevin Robillard 🇺🇸 (@Robillard) August 24, 2022
Pappas is brave for taking that stance while many other Democrats are more than willing to seal-clap whatever the Democrat Party does. It’s especially brave when you understand that the Democrats who are pushing the hardest for student loan debt to be forgiven have mountains of it themselves and lead some of the more radical parts of the Democrat Party.
According to the Daily Wire, Obama’s top economist, former Treasury Secretary and National Economic Council director Lawrence Summers, noted that this will do nothing to help the economy:
“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.”
Overall, the plan to cancel student debt isn’t just wildly unfair, it’s shortsighted. Without addressing the out-of-control costs and predatory lending practices of universities, this problem won’t just go away, and taxpayers will be footing the bill for useless degrees for the rich for decades.
This is clearly a sloppy tactic to get the goodwill of voters back in a sinking economy, but this may be a direct shot in the foot for Democrats.