WASHINGTON (Michigan News Source) – On Wednesday, President Joe Biden announced he is giving student loan forgiveness to more than 40 million Americans.
Biden said he will erase $10,000 in federal student loan debt for those with incomes below $125,000 a year, or households that earn less than $250,000. He’s canceling an additional $10,000 for those who received federal Pell Grants to attend college.
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Michigan Gov. Gretchen Whitmer touted how the student loan forgiveness will make a “real difference” for Michiganders.
The decision to cancel $10,000 in student loan debt and $20,000 for Pell Grant recipients will make a real difference for 1.4 million Michiganders that have student loans. Putting money back in their pockets and lifting a huge burden off their backs. pic.twitter.com/VM9zet2T0z
— Governor Gretchen Whitmer (@GovWhitmer) August 24, 2022
House Speaker Nancy Pelosi called Biden’s actions “bold” on Twitter, but the internet was quick to clarify her comments in April when she said student loan forgiveness is not within the powers of the executive branch.
Nancy Pelosi pointed out in April that Joe Biden doesn’t have the constitutional authority to wipe out student loans. This isn’t even a tough call. Courts will all strike it down. Total political ploy. pic.twitter.com/PvZICd0QL1
— Clay Travis (@ClayTravis) August 24, 2022
Borrower balances have been frozen since the beginning of the COVID-19 pandemic. That means no payments have been required on most federal student loans since March 2020.
Lawrence H. Summers, who served as Secretary of the Treasury for President Clinton and Director of NEC for President Obama, noted how this adds to inflation in a series of Tweets.
I hope the Administration does not contribute to inflation macro economically by offering unreasonably generous student loan relief or micro economically by encouraging college tuition increases.
— Lawrence H. Summers (@LHSummers) August 22, 2022
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Congressman Bill Huizinga, a Republican who represents Michigan’s 2nd District, called Biden’s announcement a “reckless act” which he says is “questionable” and insulting.
Many are calling Biden’s student loan forgiveness an attempt to pander to voters before the midterm elections.
Leaders lead, politicians pander, please America elect more leaders. @JoeBiden is doing nothing but throwing every handout possible to buy votes. The student loan forgiveness is another example of lack of leadership. #Yourloanyourchoice
— Kevin McKinley (@kevinmck67) August 24, 2022
For the love of god stop saying that student loan forgiveness is for “the kids.” We are not kids. We are adults to whom you transferred the burden of funding higher ed when the states divested at the same time you sold us the idea that a degree was the only way to get ahead
— Melissa Johnson, PhD (@Lady_Historian) August 23, 2022
There is no such thing as student loan forgiveness. There is only student loan transferral, where the debt is transferred from the person who took out the loan to someone else who did not take out the loan.
— Matt Walsh (@MattWalshBlog) August 24, 2022
Student loan forgiveness is a middle finger to the people who busted their ass to work hard to do the right thing.
— Tim Young (@TimRunsHisMouth) August 25, 2022
Biden’s announcement is expected to face legal battles.
