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Top economists who worked for former President Barack Obama (D) slammed President Joe Biden (D) for his plan to bail out a large number of Americans from having to pay back a substantial portion of their student loans or Pell Grants.
Biden announced his plan Wednesday to make U.S. taxpayers pay off thousands of dollars in student loans and Pell Grant recipients for those making less than $125,000 a year.
The nixing of $10,000 of debt per borrower would cost $298 billion in 2022 and a total of $329 billion by 2031 if the policy is renewed each year, according to a nonpartisan analysis from the University of Pennsylvania’s Wharton School. Less than 32% of the funding would benefit Americans in the two lowest income quintiles, while 42% would benefit those earning more than $82,400 per year.
Jason Furman, President Barack Obama’s chairman of the Council of Economic Advisers, responded to the plan by writing on social media, “Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless.
