White House press secretary Karine Jean-Pierre argued to reporters Thursday that the administration had “done the work” to ensure that President Joe Biden’s student loan debt forgiveness is fiscally responsible and “fully paid for.”
In one exchange with Michael Shear of the New York Times, Jean-Pierre reiterated that the White House cannot yet predict the total cost of the action, and she did not highlight any specific “mechanisms” for offsetting the cost. She did argue, however, that the social benefits of relieving debt for Americans are worth the fiscal hit.
WHITE HOUSE DOESN’T KNOW HOW MUCH BIDEN’S STUDENT DEBT RELIEF WILL COST
“Here’s the thing when we talk about the pause being lifted. That’s going to bring in $50 billion per year back into the treasury, right? That was actually not happening throughout almost two years now. So that’s going to be coming back at the same time, that basically, people are getting these benefits from this plan,” she stated. “And it should matter that this president is trying to give some breathing room for people who’ve been literally crippled by this pandemic, by what has happened the last couple of years, and so, again, the way we see it is, we’ve done it in a fiscal, balanced, responsible way.”
“I get what you’re saying. But there’s also the argument that I’m making as well, is that we’re putting money back into the Treasury, which matters as well,” Jean-Pierre continued. “I’m trying to explain to you how it will offset. How all of this would be offset once the pause is lifted, and also, once this process with the student loan is also done, so there is a process here, right, that is — we believe it’s going to offset that.”
Outside estimates suggest that, depending on the uptake rate for eligible borrowers, Biden’s debt forgiveness would cost between $300 billion and $900 billion.
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You can watch Thursday’s briefing in full below.
