President Joe Biden is finally addressing the issue of student loans in a comprehensive way. The student loan forgiveness includes $10,000 for some qualified borrowers.
Pell Grant recipients will get up to $20,000 in forgiveness on their loan debt. The president tweeted: “In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023.”
U.S. Secretary of Education Miguel Cardona also stated: “Today, we’re delivering targeted relief that will help ensure borrowers are not placed in a worse position financially because of the pandemic and restore trust in a system that should be creating opportunity, not a debt trap.”
To qualify, borrowers have to be earning less than $125,000 and $250,000 a year for couples. Those who received a Pell Grant in college will have to meet the same requirements. Unlike with the stimulus payments, borrowers will have to apply to get relief.
People on the left of the political spectrum are not too happy because the president did not go far enough for them. However, on the right, the words socialism and inflation are being thrown everywhere.
Utah Senator Mitt Romney says Biden is doing this to get more votes in the midterm elections. The Republican said: “Sad to see what’s being done to bribe the voters. Biden’s student loan forgiveness plan may win Democrats some votes, but it fuels inflation, foots taxpayers with other people’s financial obligations, is unfair to those who paid their own way & creates irresponsible expectations.”
Inflation has been trending down, but it remains fairly high.
The situation in the US economy is getting better at the moment, and many conservatives speculate that the already-high inflation is going to continue to climb for some time in the near future because of Biden’s latest move.
In the meantime, President Biden has tried to calm everyone down by stating that things are not as bad as they are being depicted, but it does not seem like he has managed to convince too many people on the right so far.
In fact, there have been more and more discussions about the ongoing situation on the internet, with some convinced that this is only the tip of the iceberg and that things are about to get even worse in a few months.
Reports indicate that the current 8.5% inflation rate is among the worse numbers the country has seen in 40 years and has continued a trend that was already growing prominently in November.
Meanwhile, the country has been affected by other problems, including the new Covid variant and a shortage of labor in certain areas. Many of those issues have been compounding the already very pronounced problem with the growing inflation, causing various people to worry about what might happen next and how they should respond.
The right has not presented a clear argument as to why the student forgiveness plan will make things worse when compared to bailing out farmers as former President Donald Trump did in 2020.
