Biden Student Loan Handout Benefits DC Most

While Joe Biden was happy to trumpet his order handing taxpayers another $300 billion bill for his decision to hand out student loan forgiveness, he has been less enthusiastic about discussing which Americans will benefit most from the giveaway.

After his press announcement of the plan, he was asked by a reporter if it was fair to Americans who either paid off their student loans already or have never taken any out. He didn’t answer the question but said there are some people who want to give “multibillion-dollar businesses” tax breaks. Then he walked away.

It is not surprising that Biden does not want to discuss the fairness of the program. It will provide up to $10,000 in relief from student loan debt to those making less than $125,000 annually. It turns out that the plan is of great personal interest to many employees of the Biden administration.

At least 30 White House staffers who are required to file federal financial disclosures have reported owing federal student loan debt. Together, they owe up to $4.7 million. Across Washington, D.C., there is more student loan debt than in any other American city. The average debtor in the city owed almost $55,000 in student debt in 2021.

There are over 45 million Americans who owe student loan debts, amounting to a staggering $1.6 trillion. That is more than is owned on outstanding car loans, credit card balances, and other types of consumer debt.

The Biden administration has said that the forgiveness plan will see 90% of the benefit going to persons making less than $75,000 annually. Up to 20 million borrowers can expect to have their entire debt wiped out.

Senate Minority Leader Mitch McConnell (R-KY) said this week that Biden’s program amounts to “student loan socialism.” He said the plan is a “slap in the face” to every family that saved for college, everyone who worked to pay off their debt, and every person who volunteered to serve in the military to avoid taking on student debt.

Biden’s National Economic Council deputy director Bharat Ramamurti was asked if it is truly “building from the bottom up and the middle out” to provide debt forgiveness to new graduates from medical and law school who are likely to soon become some of the country’s highest earners. He told reporters that “nobody in the top 5% of incomes is going to get a single dollar under this proposal.”

While the Democrats are likely to enjoy a temporary bump in polling from their base, it remains to be seen how Biden’s latest ultra-inflationary plan will play with mainstream voters in November.