08/30/2022

Individual Taxes Are Not Increasing to Pay for Student Loan Forgiveness

No one’s annual tax bill is going up to pay for the plan

Student loan borrowers who make less than $125,000 per year will be eligible to have between $10,000 and $20,000 of federal student loan debt forgiven, President Joe Biden announced on August 24.

Even though the forgiveness plan may be a sigh of relief for many student loan borrowers, some GOP leaders, including Sen. Ted Cruz (R-Texas) claimed this would have a negative impact on the average U.S. taxpayer.

“Let’s be clear - there is no way to ‘cancel’ student debt. This will cost every taxpayer an average of $2100... This administration is exceeding its legal authority and illegally burdening hard-working Americans with debts they didn’t take on themselves,” a release from Cruz’s office said. Yet, this isn't true. The average taxpayer will not have to pay $2,100 to cover the cost of student loan forgiveness.

Please select this link to read the complete article from WBNS-10TV.