Chuck Schumer Claims Student Debt Transference ‘Isn’t a Handout to the Wealthy’

Senate Majority Leader Chuck Schumer, D-N.Y., speaks to reporters at the Capitol in Washington, Nov. 15, 2022. Democrats celebrating a successful effort to keep control of the U.S. Senate this year will soon confront a 2024 campaign that could prove more challenging. (AP Photo/J. Scott Applewhite, File)
AP Photo/J. Scott Applewhite

Sen. Chuck Schumer (D-NY) on Tuesday claimed the Democrat-lead initiative to transfer student debt to the taxpayer “isn’t a handout to the wealthy,” despite contrary evidence by the Penn Wharton Budget Model.

Schumer’s comment came as the Supreme Court heard oral arguments on whether or not the Biden administration’s attempt to transfer $400 billion in loans to the taxpayer is constitutional. Biden’s plan would allegedly benefit 40 million college-educated Americans, though the forgiveness could result in a $2,500 burden per taxpayer, the National Taxpayers Union estimated.

According to a Penn Wharton Budget Model, about 70 percent of debt forgiveness under Biden’s plan will go to the top 60 percent of income earners, Forbes reported:

Despite the $125,000 income cap, research shows the White House plan still slightly favors higher-income Americans: Analysis of a $10,000 blanket relief program published Tuesday by the Penn Wharton Budget Model found 69.79% of overall debt forgiveness would go to the top 60% of Americans by income, while individuals who make between $82,400 and $141,096 — placing them between the 60th and 80th percentile — would receive the greatest share of overall forgiveness, at 28.1%, though the additional relief for Pell grant recipients should bring further benefit to lower-income borrowers.

Despite evidence to the contrary, Schumer appeared to contradict the Wharton Model on the Senate floor by claiming nearly the opposite; that “90 percent of the relief going to out-of-school borrowers will go to those earning less than 70,000 a year.”
“This isn’t a handout to the wealthy. Far from it,” he claimed. “This is critical relieve to working and middle class families.”

Schumer did not address how the transference of debt to taxpayers would impact taxpayers or whether it would ultimately produce a positive social good for those who forwent loans to be forced to assume them from others.

Biden has tried to transfer student loans from the college educated onto taxpayers since he assumed office under pressure from the far left. The legality of Biden’s attempts is questionable, along with concerns from Republicans that transferring loans onto taxpayers would ultimately increase Biden’s already soaring inflation.

“Why should I pay for somebody else’s college?” blue-collar workers have questioned Biden’s student loan bailout.

Follow Wendell Husebø on Twitter @WendellHusebø. He is the author of Politics of Slave Morality.


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