CNN guest skewers Biden student loan handout plan
Washington Post opinion columnist Catherine Rampell explained that Biden’s initiative on student loan debt may be economically unwise.
Washington Post opinion columnist Catherine Rampell explained Wednesday that President Biden’s newly announced $300 billion student loan debt handout may be economically unwise.
The White House announced Wednesday that Biden will cancel $10,000 in loans (up to $20,000 for Pell Grant recipients) for those making under $125,000 a year. The nation's federal student debt now tops $1.6 trillion with the national debt at $30.7 trillion.
CNN Newsroom host Jim Sciutto inquired of Rampell whether Biden’s student loan handout is "good economic policy."
Rampell, suggested that "from an equity and an inflationary standpoint it’s not the best use of taxpayer dollars here."
WASHINGTON, DC - AUGUST 24: U.S. President Joe Biden speaks on student loan debt in the Roosevelt Room of the White House August 24, 2022 in Washington, DC. (Alex Wong/Getty Images)
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Rampell elaborated on how this student loan handout is misguided.
"There are a lot of people who will benefit who appear to have relatively low or moderate incomes today, but will have very high expected future earnings," she explained. "Going to college is generally considered an investment. If you are someone like a medical resident, for example, you will benefit from this, because your income is moderate today, but your future earnings are very high."
The writer said help for those who are truly suffering from student debt could be handled with better precision.
"So I think there are better ways to target the people who are actually suffering from student loan burdens who are less likely to ever be able to pay off their debts, you know, maybe because they never actually achieved a degree or they got a degree that was ultimately worthless," she noted. "There are more targeted ways to do this that Biden has also pursued, something more broad-based. I think [this plan's] going to cost a lot of money and may end up going to a lot of people who don’t really need the help."
President Joe Biden's economic policies have remained controversial throughout his presidency. (AP Photo/Carolyn Kaster, File)
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Biden's $300 billion student debt initiative was met skepticism from other economics experts and commentators.
Committee for a Responsible Federal Budget (CRFB) President Maya MacGuineas said in a statement to Fox News Digital that executive action was irresponsible.
"While I know the motivation, I can certainly say it’s an irresponsible policy that is going to end up costing young people a tremendous amount from all this borrowing," MacGuineas explained.
A sticker of President Joe Biden is placed on a gas pump at an Exxon Station on March 9, 2022, in Lakewood, Colorado. (RJ Sangosti/MediaNews Group/The Denver Post via Getty Images)
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Even left-leaning media outlets are pointing out critical flaws of Biden’s student loan handout plan, noting that the massive payout will likely increase taxes, primarily benefit the wealthy, and ramp up inflation.
Fox News' Nikolas Lanum and Aubrie Spady contributed to this report.
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