Senate Majority Leader Charles Schumer (D-NY) is making another push to cancel a large chunk of federal student loan debt, the Daily Wire reports.
For some time now, Schumer and some of his fellow Democratic congressmen and congresswomen, have been calling on President Joe Biden to cancel up to $50,000 in federal student loan debt per borrower. Schumer believes that Biden, as the U.S. president, can do this through executive action alone.
Biden, at least thus far, has not been on board with this idea. Instead, Biden has talked about a more modest proposal that would result in the cancelation of about $10,000 in federal student loan debt per borrower.
Schumer, nonetheless, continues to push his idea.
“Cancel student debt”
Last week, Schumer participated in a roundtable discussion during which he, once again, argued in favor of canceling student loan debt.
During this appearance, Schumer, in particular, took aim at what he referred to as an “awful myth.”
“Let’s dispel one awful myth right here: This is not a problem that concerns the wealthy or the Ivy League,” Schumer said. “All of these fat cats, and people who never want to see help for working people and poor people come up with these myths.”
“It’s affecting working-class people,” Schumer insisted.
Fact or fiction?
The so-called myth that Schumer was referring to here was recently touched upon by Cato Institute policy scholar Neal McCluskey.
If you estimate the amount that people will end up earning as a result of the degrees, you can see that people who take on student debt are really going to end up well off on average. The average person with a bachelor’s degree makes about $1.2 million more over their lifetime than someone with just a high school diploma. If you go to somebody with a professional degree — like a medical degree or a law degree — they end up making about $3 million more over their lifetime than somebody with just a high school diploma.
That being said, McCluskey went on to argue that Schumer’s student debt cancellation plan “would clearly have negative, unintended consequences going forward of encouraging even more rampant price inflation than we’ve seen in college over the last several decades.”
To someone like Schumer, though, this is all besides the point. The point is getting votes and getting them now, and Schumer believes this is one way to achieve this. Thankfully, so far, not all Democrats are with him.