Washington, D.C. – Both Rep. Adrian Smith (R-NE) and U.S. Senator Deb Fischer (R-Neb.) have released statements after President Biden announced he would cancel student debt for certain borrowers.
Congressman Smith says – “President Biden’s plan to cancel student debt places the ultimate burden of cost on those who can afford it least. This proposal will cost hundreds of billions of dollars and benefit the top 60 percent of earners. Not only would it drive up the national debt and drive down the value of a college-level or technical education, this proposal leaves expensive colleges and universities with little incentive to lower exorbitant tuition costs. Furthermore, it will make record-high inflation even worse. This is a disastrous combination that will benefit the highest earners while leaving lower and middle income Americans on the hook for a radical, reckless proposal with no accountability. President Biden must abandon this debt transfer scheme.”
Smith is a cosponsor of H.R. 8006, the Student Loan Accountability Act, a bill to prohibit the mass cancellation of student loans and a cosponsor of H.R. 7058, the Federal Student Loan Integrity Act, a bill to prohibit the Secretary of Education from extending the student loan repayment moratorium. H.R. 7058 also prohibits any future administration from carrying out widespread student loan forbearance for more than thirty days at a time.
U.S. Senator Deb Fischer says – “Yet another economically backwards policy from the Biden administration that unfairly pushes the burden of these loans onto all American taxpayers and further fuels the inflation fire.
It’s not just the multi-billion-dollar cost. These loans are not magically “gone” – the debt is being transferred from those who borrowed it to current and future taxpayers.
Working-class families who followed the rules and paid off their student loans, as well as the vast number of Americans who did not go to college, must now cover the cost of others who accumulated this debt. That is not right.
We should be focused on policies that address the root causes of high tuition and providing the American people will better access to the educational opportunities they deserve.”
The Penn Wharton Budget Model estimates this decision will cost upwards $300 billion.