Rep. Estes (R-Kansas) released the following statement following the Biden Administration’s student loan forgiveness announcement:
“Thanks to destructive Democrat policies, Kansans are losing $8,761 per year to Bidenflation, will pay higher taxes for the so-called Inflation Reduction Act and are now paying off others' college debt,” said Rep Estes. “This election-year gimmick does nothing for Kansans who worked through school to avoid debt, took side jobs to pay off loans early after graduating or chose to invest in other career paths outside of a four-year degree.”
Background:
Penn-Wharton Budget Model estimates that forgiving federal college student loan debt will cost between $300 billion and $980 billion over the next ten years.
According to the Joint Economic Committee, the annualized cost of inflation per household is $8,761
Most of the debt is held by borrowers in the top 60 percent of income distributions. And 87% of American adults don’t have student loans.
Student loan forgiveness is a giveaway to highly educated college grads. The Committee for a Responsible Federal Budget points out, “…debt cancellation gives a much higher proportion of its benefit to top earners. For example, a report from the University of Chicago showed that the top 10% of earners receive more from cancellation than the entire bottom 30% of earners.”