Do you believe America’s workers should pay debts, largely for graduate school loans? Unfortunately, the Biden administration did. Without Congressional action, Democrats unilaterally canceled $20,000 in student loans held by the Department of Education for individuals making $125,000 and for couples making up to $250,000. It is, in short: bad policy.
First, there’s the immense cost. The Penn Wharton Budget Model estimates President Biden’s debt forgiveness may cost up to $1 trillion. Piling onto the $31 trillion federal debt, will cost American taxpayers more, and make our paychecks worth less.
As we have witnessed throughout the Biden administration’s tax and spend policies, the expense is levied heaviest on working Iowans. Even former Obama administration economist Jason Furman criticized Democrats’ spending: “Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless.”
Second, there’s the question of fairness. Canceling student debt is a slap in the face of hard working Americans who pinched pennies, made sacrifices, and worked to pay their personal debt burdens. Good policies should reward personal responsibility, not penalize it. Democrats are prioritizing political supporters over responsible Americans who are paying the tab.
Overwhelmingly, the rich are rewarded, while non-college graduates pay the price. Penn Wharton estimates 73 percent of the benefits will go to the top 60 percent of earners in America.
Let’s be clear: countless truck drivers, waitresses, and tradesmen in Iowa will be paying off the debts of high earning graduates and college professors in New York and California making six-figure salaries.
Third, this does nothing to address the problem of out-of-control college costs and soaring student loan debt. Experts have warned it will make matters even worse. The nonpartisan Committee for a Responsible Federal Budget estimates total student loans will return to the current $1.6 trillion level in just four years.
This decision hurts every Iowan who worked through school, completed an apprenticeship, served in the military, or paid off their loans. Sadly, my opponent, Cindy Axne, voted to eliminate student debt and supports Biden’s policies 100 percent of the time.
Iowans deserve better than an administration blindly adding fuel to our problems, and a Congress failing to hold Biden accountable. Let’s show America the Iowa-way of rewarding hard work, versus taxing hard workers.