President Joe Biden, joined by Senate Majority Leader Chuck Schumer, D-N.Y., speaks to the press and departs the U.S. Capitol in Washington, D.C. on Wednesday, July 14, 2021, en route to the White House. (Official White House Photo by Adam Schultz)
Biden recently announced his plan to cancel $10,000 of student debt for those making under $125,000 a year.
The plan is a little more complicated than that, allowing the cancelation for households making less than $250,000 and upping the number to $20,000 in cancelation for Pell Grant recipients.
And as always, the devil is in the details, with massive changes being made to the income based repayment plans. Which essentially incentivizes more student debt.
The Journal reports that it will expand the deficit by hundreds of billions if the plan survives legal challenges.
Democrats are cheering the plan with hopes it will crate more Democrat voters, but some Democrats are noticing that could not be the case.
Senator Catherine Cortez Masto (D-Nev) is criticizing the action because it doesn’t address what is making college unaffordable in the first place.
Senator Michael Bennett (D-Colo) said the plan should have been paid for with revenue.
Representative Tim Ryan of Ohio who is in a competitive senate race. with Republican challenger JD Vance, told The WSJ, “waiving debt for those already on a trajectory to financial security sends the wrong message to the millions of Ohioans without a degree working just as hard to make ends meet.”