White House Implies Biden’s Student Loan Forgiveness Will Be Funded With Deficit Spending

The White House has suggested that Biden’s decision to cancel between $10,000 and $20,000 in student loan debt will be fully paid for thanks to a drop in the federal deficit.

Too Good To Be True?

People are speculating that the student loan forgiveness will be paid for by simply piling it on top of the national debt. News outlets have reached out to the White House to find out if future tax hikes will be necessary to pay for the loan forgiveness.

Related: Joe Biden: “Our Economy Had 0% Inflation in July,” Twitter Reacts

Crunching the Numbers

Bharat Ramamurti, deputy director of the National Economic Council, had this to say about the federal deficit:

“We’re on track for $1.7 trillion in deficit reduction this year. That means, practically speaking, compared to the previous year, 1.7 trillion more dollars are coming into the Treasury than are going out. And we’re using a portion of that — a very small portion of it — to provide relief to middle-class families, consistent with the president’s plan.”

However, economists say that the White House’s unwillingness to outline offsets for the student loan handout shows that it plans to simply pile the money on top of the $726 billion federal deficit.

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