Fact Check: Student Loan Forgiveness Will Worsen Inflation
WASHINGTON, D.C., June 7, 2022
President Biden’s top economic advisor is wrong—blanket student loan forgiveness will exacerbate inflation. Brian Deese, Director of the National Economic Council, is deceiving himself and the American people by claiming that student loan forgiveness will have a “pretty small” impact on inflation. We aren’t surprised by these false claims. Just last week, Treasury Secretary Janet Yellen admitted she was wrong when she said inflation was a small issue.
Back to the facts.
The Biden administration unilaterally canceled as much as $400 billion in student loan debt, and his refusal to end the student loan repayment pause has cost taxpayers well over $100 billion to date.
But that’s not enough to satisfy the far Left. Numerous reports indicate President Biden is pursuing blanket student loan forgiveness. According to the Committee for a Responsible Federal Budget (CRFB), this could cost taxpayers upwards of $230 billion and exacerbate Biden’s inflation crisis. Adding this cost on top of President Biden’s other loan forgiveness schemes is fiscal insanity.
As inflation continues to soar and Americans struggle to afford gasoline and groceries, this policy would send taxpayer dollars directly into the pockets of Ivy League-educated lawyers and doctors. Research demonstrates that student loan forgiveness disproportionately benefits high-income borrowers. This is unfair to the millions of Americans who never went to college, to the Americans who have already paid off their loans, and to future borrowers who will continue to see massive college tuition costs.
According to NPR, inflation is driving more American families, even those with good-paying jobs, to food banks. Instead of developing policies that will ease inflation, the Biden administration wants to make it worse and implement mass student loan forgiveness.
And that is why Committee on Education and Labor Members Rep. Bob Good (R-VA) and Rep. Jim Banks (R-IN) have introduced the Federal Student Loan Integrity Act, H.R. 7058, to stop the Biden administration from using the pandemic as an excuse to continue to extend the student loan repayment moratorium or waive or modify any other requirements under the federal student loan system.
Biden’s policies will turn the dumpster fire that is record-high inflation into an economic catastrophe if he continues with these radical schemes.