Senate Minority Leader Mitch McConnell (R-Ky.) has blasted president Biden for his decision to forgive $10,000 of student loan debt for those whose annual income is less than $125,000. He criticized the move as unfair.
McConnell took to Twitter on Wednesday to also say that this was a “slap in the face” to those who had made sacrifices to pay off their student loan debt, or those who chose careers that would allow them to avoid debt.
He also said that in general, those with student loan debts tend to have a higher median income than Americans. While experts may have found some benefits associated with student loan forgiveness, those tend to benefit people with a higher income.
McConnell also spoke about how inflation is harder on working families, and that this governmental move gives money to “elites”. He also said the move was highly political, as the Democrats were using it to gain momentum for their political agenda.
According to a report by the Brookings Institution reported in October 2020, 40% of households with an income of $74,000 or more per year, is responsible for 60% of student loan debt. Forty percent of households with a lower income hold a bit less than 20 percent of student loan debt.
The forgiveness plan that Biden has put in place will forgive up to $20,000 to Pell Grant recipients. Those that have more financial needs will also be able to benefit from a limit on repayments which will be up to 5 percent of a borrower’s monthly income. The pause on student loan repayment was once extended until Dec. 31.
Senior administrations have maintained that this move will predominantly help the working class. However, McConnell has said that this plan is bound to make inflation worse.