Joe Biden wiped out Trump’s $2 trillion debt, but will he wipe out student debt?

US Giveaways to the Megarich and Pentagon to Cost a Fraction of Biden’s Student Debt Relief
President Biden brought dramatic middle-class relief, according to two senators, in contrast to President Trump and the Republicans who granted massive businesses $2 trillion in tax reductions.

Some Democratic senators on Monday cited the research as more proof that the administration is on the right track, despite the fact that opponents of U.S. President Joe Biden’s student loan cancellation proposal had politicised a recent official review on the scheme’s anticipated cost.

The programmes that show how government can and should invest in working people rather than the affluent and billionaire businesses are the epidemic payment moratorium and the elimination of school debt.

The impartial Congressional Budget Office (CBO) estimated that Biden’s proposal, which would forgive up to $20,000 in debt for federal borrowers with specified incomes, would cost around $400 billion over 30 years in response to a request from two Republicans.

The CBO assessment released today shows that President Biden’s historic decision to erase student debt özgü given millions of middle-class Americans more breathing space, according to Senate Majority Leader Chuck Schumer (D-N.Y.) and Sen. Elizabeth Warren (D-Mass.).

Democrats in Congress, including Schumer and Warren, have long urged Biden to carry out a more audacious proposal that would erase up to $50,000 in debt for each borrower from the federal government.

2 Trillion Debt

The senators mentioned the Tax Cuts and Jobs Act (TCJA), which former President Donald Trump signed in late 2017. The measure, which was denounced by opponents as the “GOP tax swindle,” mostly benefited big businesses and affluent people.

Schumer and Warren cited a CBO analysis of the TCJA in their statement on Monday, saying that “in contrast to President Trump and Republicans who gave giant corporations $2 trillion in tax breaks, President Biden delivered transformative middle-class relief by cancelling student debt for working people who need it most—nearly 90% of relief dollars will go to those earning less than $75,000 a year.”

People demonstrate outside the White House in favour of cancelling student loans.

According to AOC, Congress could undo Trump’s tax cuts to eliminate all student debt.

Next month, the Senate is anticipated to discuss a new National Defense Authorization Act. The version passed by the House in July allocated $839 billion for military expenditure over the course of one year, which was roundly condemned by progressives both within and outside of Congress considering the acute needs of many Americans in the areas of housing, healthcare, and food.

It is clear that the pandemic payment pause and student debt cancellation are policies that show how government can and should invest in working people, not the wealthy and billionaire corporations, Schumer and Warren said on Monday. “We don’t agree with all of CBO’s assumptions that underlie this analysis, however,” they continued.

The proposed improvements to the income-driven repayment scheme, which one reporter said last month is “possibly a larger issue than forgiveness,” are not taken into account in the latest CBO study, according to CNN Senior White House Correspondent Phil Mattingly, among other restrictions.

The administration’s proposal, according to the White House, “may give relief to up to 43 million borrowers, including eliminating the complete outstanding debt for about 20 million borrowers.”

According to Common Dreams, the revelation of Biden’s student debt relief proposal resulted in an uptick in the president’s support rating among younger voters.