Cancellation of student debt would be ‘very unfair’, benefit the rich: Ben Bernanke

  • Former Federal Reserve Chairman Ben Bernanke told The New York Times it would be “very unfair” to cancel student debt.
  • Many of those who would benefit from the relief would end up making a lot of money, he said.
  • That’s a concern shared by some Republican lawmakers who oppose broad debt relief.

former chairman

US Federal Reserve

Think President Joe Biden should think twice about canceling student debt.

“Cancellation would be very unfair,” said Ben Bernanke, who served at the Fed from 2006 to 2014. Tell New York Times. “Many people with a lot of student debt are professionals who will move on and make a lot of money in their lifetimes. So, why should we favor them over those who didn’t go to college, for example?”

His views on student loan forgiveness are in line with many conservatives who believe debt relief will help the rich, not the low-income earners who need it the most.As Insider previously reported, Republican lawmakers are growing more and more worried Biden will actually cancel some student debt, he Commitment Do his campaign.President recently said A decision on forgiveness will be made in the coming weeks — before student loan payments are suspended Expired End of August – The question now is not whether the debt will be cancelled, but how much.

That worries critics of student loan forgiveness.Beyond the argument that student loan forgiveness will benefit the wealthy, some lawmakers, such as Utah Sen. Mitt Romney Call The potential relief is a “bribe” to help Democrats win votes in the midterm elections. Others, like Virginia Fox, the Republican leader on the House Education Committee, have frequently cited the cost to taxpayers of suspending student loan payments, arguing that debt cancellation will fuel inflation.

Still, advocates of student loan forgiveness maintain that canceling student debt will stimulate the economy and benefit low-income borrowers. Massachusetts Sen. Elizabeth Warren — a leading Democrat pushing for $50,000 in forgiveness — said at a recent Senate hearing that “opponents of student loan cancellations are living in a bubble of privilege, which is not the same as borrowing money. The reality of the acquired person is totally disjointed. An education.”

“99.7 percent of borrowers don’t have an Ivy League degree,” Warren said. “Heck, 40% of them don’t have any degree at all. Most of these loans are held by people with zero wealth. Black borrowers aren’t just struggling to keep up with their payments — they’re actually falling behind. “

It is unclear what relief Biden will ultimately implement.he already exclude $50,000 in forgiveness, while reports say Suggest He’s considering relief for those earning less than $125,000 a year, Politico report The Ministry of Education does not have the ability to deduct based on income limits alone.

That’s why advocates like NAACP youth and college director Wisdom Cole want Biden to shine with student loan forgiveness.

“President Biden, wealthy, mostly white doctors and lawyers may benefit from the $10,000 cancellation, but it won’t do much to close the racial wealth gap, nor will it help,” Kerr said in a statement. Fix America’s oppressive system.” “Blacks have been deeply in debt for generations. We fear the White House is simply not affected by the devastating impact of student loan debt on blacks. Any cancellation as low as $10,000 will be a hit Slap in the face.”

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