President Biden has moved to reduce student loan debts but the result may be accelerated inflation. | Kyle Gregory Devaras/Unsplash
President Biden has moved to reduce student loan debts but the result may be accelerated inflation. | Kyle Gregory Devaras/Unsplash
The Wall Street Journal's editorial board has criticized President Joe Biden’s decision to cancel up to $20,000 of student-loan debt per borrower, saying the move will only worsen inflation.
According to an opinion piece published Tuesday, The Editorial Board called the move “an inflation expansion act,” saying canceling the debt will cost America “$330 billion over 10 years,” and even more in the long run.
“That’s far more than the $102 billion the Inflation Reduction Act purportedly reduces the deficit over 10 years starting in 2027,” The Wall Street Journal (WSJ) said. If that weren’t enough of a problem, the story said, “about 70% of the loan relief would go to borrowers in the top 60% of income distribution."
Fox News reported Wednesday that Biden plans to cancel $10,000 in debt for borrowers making less than $125,000 a year. For those who received Pell Grants, Biden's forgiveness plan will cover up to $20,000 in debt.
According to a the Education Data Initiative, the nation's student loan debt sits at more than $1.6 trillion, or an average of $29 billion per state. In Arizona, however, that number is closer to $31.4 billion, the website said.
The WSJ questioned the wisdom of so much debt forgiveness at a time when the national debt, according to Treasury Department data, is over $30 trillion.
In addition, Fox reported that of the 43 million Americans who have student-loan debt, almost a third have less than $10,000 in debt, and more than half owe less than $20,000.
In Arizona, 20% of borrowers owe an average of $28,547, the Education Data Initiative said, and 17% owe less than $5,000.
Alerts Sign-up