Fox News White House correspondent Peter Doocy pushed back on White House press secretary Karine Jean-Pierre on the Biden administration’s plan for student loan forgiveness, as she repeatedly refused to answer his question about who was paying for the $300 billion project.
President Joe Biden announced on Wednesday that he planned to cancel up to $10,000 in student loan debt for those earning less than $125,000 per year as well as up to $20,000 to Pell Grant recipients. Doocy asked Jean-Pierre how the U.S. plans to afford this. In response, the press secretary simply stated that the nation’s federal deficit has and will continue to drop.
“And you might spend $300 to $900 billion extra, so you can do that and not increase the deficit?” Doocy asked.
“Here’s the thing. What we are trying to do here, we are doing this responsibly. You heard directly from the president. This is something that is going to be important for middle class Americans when you think about 90% of the folks who are going to actually benefit from this are making $75,000 or less. And you think about what Republicans did just a couple of years ago, they signed off on a $2 trillion tax cut for the wealthy and did not provide any way to pay for that.”
“Who is paying for this? But you’re talking a lot about how much it might cost or might not cost,” Doocy asked. “Who is paying for this?”
Jean-Pierre then touted the work of congressional Democrats and the Biden administration to reduce the deficit. She says their actions will allow the federal government to better provide for the middle class.
This, of course, comes as congressional Democrats have successfully passed the Inflation Reduction Act, a $760 billion initiative that is expected to provide little to no relief towards inflation, because, in the words of Sen. Joe Manchin (D-WV), “why would it?”
Doocy’s questions, meanwhile, remained unanswered, so he asked again. “But when you forgive debt, you’re not just disappearing debt, so who is paying for this?”
Jean-Pierre repeated that the Biden administration is handling the student loan debt issue responsibly and promised it will help those who are in need. As Doocy attempted to repeat his question, the press secretary cut him off, blaming Republicans for adding to the deficit by passing the Tax Cuts and Jobs Act of 2017.
“I just laid out for you, no, Peter, I just laid out for you how we’re seeing this process and why this matters,” she said. “I just laid out because of the work that we have done in the economy, because of the American Rescue Plan, because of the Inflation Reduction Act, and because of all of this work this president has done, has actually brought down our deficit by $1.7 trillion, unlike what Republicans did when they added to our deficit [by] $2 trillion and did not care at all, or thought about how this was going to be paid for.”
There have been concerns that the plan to cancel student debt may add to inflation and benefit the wealthy. The nonpartisan Committee for a Responsible Federal Budget estimated that canceling student loan debt entirely would increase inflation by anywhere from 10 to 50 basis points.
Scroll down to leave a comment and share your thoughts.