The Grind:
As the U.S. Supreme Court starts looking more closely at the legality behind President Biden’s proposed student loan handout plan, Americans are voicing their opinions as they weigh the fiscal move’s taxpayer impact.
“I’m currently not a fan because that’s just going to make everyone else’s taxes higher, because someone’s going to have to pay for it,” one young person told FOX Business’ Lydia Hu in a man-on-the-street-style “Varney & Co.” segment.
The Details:
Just before the midterm elections, the Biden administration announced a college loan forgiveness plan that would cancel $10,000 in federal student loans for individuals making less than $125,000 per year or households earning less than $250,000 annually as of 2020 or 2021. Recipients of Pell Grants – who typically demonstrate greater financial need – would receive an additional $10,000 in debt cancellation.
Beginning Tuesday, justices will hear a pair of challenges to the student loan debt handout, both of which involve questions about whether the Department of Education was authorized by Congress to advance the rule implementing Biden’s plan and followed the proper regulatory procedures.
While approximately 43 million student loan borrowers qualify to partake in the plan, the bipartisan Congressional Budget Office has predicted Biden’s student loan handouts would cost taxpayers about $400 billion over the next three years if fully implemented. Read more…