Paid-for student loan handout by Biden revealed

Photo Credit: Gage Skidmore

Several White House officials have suggested that government spending revenue could be further exaggerated by President Joe Biden's student loan debt cancellation program.

According to Biden, Pell Grant recipients and other borrowers who receive less than $125,000 in annual income could have their federal student debt forgiven by as much as $20,000 each.

As inflation has soared across the country, Republican lawmakers and others are concerned that the move may increase national debt.

Deputy Director of the National Economic Council, Bharat Ramamurti, spoke to a press briefing about the debt cancellation program on Aug. 26: “We're already on track to reduce the deficit, so the debt cancellation is paid for by the deficit reduction.

“We’re on track for $1.7 trillion in deficit reduction this year. That means, practically speaking, compared to the previous year, 1.7 trillion more dollars are coming into the Treasury than are going out. And we’re using a portion of that—a very small portion of it—to provide relief to middle-class families, consistent with the president’s plan.”

In the first 10 months of fiscal year 2022, the federal deficit was $727 billion, down from $2.5 trillion in the same period in fiscal year 2021, according to the Congressional Budget Office (CBO).

2 September 2022