Tipsheet
Premium

It's Not Just Conservatives Coming Out Against Biden's 'Cancellation' of Student Debt

Rebecca Downs
Rebecca Downs  |  August 24, 2022 8:30 PM

The Biden administration on Wednesday released information on so-called student loan debt cancellation, which in reality redistributes the responsibility onto taxpayers, including those who already paid off their student loans or didn't even go to college. 

During his announcement, President Joe Biden took the opportunity to tout a so-called relief as a campaign promise. When giving a non-answer as to how this will be paid for, he referenced claims about reducing the deficit. 

Even CNN has taken issue with such claims from the president, and fact-checking sites have ruled that his repeated claims are "misleading."

While the president did not stay for questions, reporters shouted out some as he walked away. One included whether this was fair to those who had already paid off their debt, or didn't take out loans.

"Is it fair to people who, in fact, do not own multi-billion dollar businesses to see what these guys give them all a tax break? Is that fair," the president asked in response. 

Recommended

Bombshell Report Reveals Disturbing Truths About the Biden-Harris Parole Pipeline Sarah Arnold
ICE Sends Hochul Grim Warning After Arresting Wanted Illegal Immigrant Sarah Arnold

White House Press Secretary Karine Jean-Pierre also refused to sufficiently discuss how the plan would be paid for, in her own ineloquent way, instead providing Fox News' Peter Doocy with a non-answer when he asked "how can the country afford such a massive handout." 

During an interview with Doocy, Education Secretary Miguel Cardona quietly confirmed that those who paid their student loan debt already will get no benefit. 

The condemnation of this so-called cancelation, was swift, with many Republicans criticizing the move. It wasn't just Republicans, though. 

Jason Furman, who was the chairman of the Council of Economic Advisors (CEA) under President Barack Obama, tweeted out a lengthy thread. He did not shy away from calling the move "reckless," as he highlighted inflation.

Furman isn't the only Democratic economist to raise very real concerns with inflation. Larry Summers, who served as the Treasury Secretary under President Bill Clinton, also had tweeted his concerns. 

Summers had repeatedly warned this administration about inflation concerns with the so-called American Rescue Plan Act. Although he was in fact correct, his reward was to be gaslit by the White House. 

When it comes to one of the last tweets in Furman's thread mentioned above, he's not the only Democrat to make such a point. 

House Speaker Nancy Pelosi (D-CA) once acknowledged that the president does not have the authority to unilaterally take such action. Her statement that "people think that the President of the United States has the power for debt forgiveness" and that "that has to be an act of Congress," came just months ago, in April.

Pelosi, though, as is to be expected, has now changed her tune and is applauding the president's move, despite knowing he can't do such a thing. 

Others thought the move didn't go far enough. 

Nina Turner is a progressive who served in the Ohio state legislature, and who attempted to run for federal office but has yet to win a primary. Student loan debt is a pet issue of hers, which she's tweeted incessantly about. As Mia highlighted in her fact-check, Turner even falsely claimed that "Student debt cancelation isn’t paid for by the taxpayers." 

Turner also tweeted incessantly throughout the day on Wednesday, which included doubling down on her false claim about the burden on taxpayers, and demanding even more relief. 

Her pinned tweet from August 22 is also about the issue.

A Tuesday statement from NAACP President Derrick Johnson also lamented how student loan debt affects black women. Johnson in part referenced that "President Biden’s decision on student debt cannot become the latest example of a policy that has left Black people – especially Black women – behind." He also preemptively bashed the president. "This is not how you treat Black voters who turned out in record numbers and provided 90% of their vote to once again save democracy in 2020," the statement added. 

Wednesday's statement from Johnson also took credit for the ultimate number being $20,000 for some families. "President Biden's announcement today, cancelling up to $20,000 for Americans across many generations, takes us one step closer to the NAACP's ultimate goal of alleviating the burden of student debt. We've got a ways to go, but the NAACP is proud that we were able to push President Biden to exceed $10,000, bringing us closer to $50,000 and beyond," his statement began. 

"#Studentloanforgiveness" is trending over Twitter as a result of the announcement, as is "Unfair," as users recognize the true nature of this move from the Biden administration, as well as "$300 Billion," as they highlight how much is being supposedly "canceled," but in reality is being redistributed.