On 8/24/2022, during press conference, Susan Rice, Biden’s domestic policy adviser said, “numerous experts affirm that restarting paused loan payments at around the same time as we provide targeted debt relief will not have any meaningful effect on inflation.” When a reporter asked her, “How much will this cost? How much will Americans have to pay on this price tag overall?
AMBASSADOR RICE: Well, that that remains to be determined, and it will be a function of what percentage of eligible borrowers actually take up this opportunity.
Reporter: $300 billion? $500 billion?
AMBASSADOR RICE: They — we’ll see what — when they take up the opportunity, we’ll be able to give you a much better sense of that.
Reporter: But are those numbers ballpark at this point?
AMBASSADOR RICE: I think it depends on the numbers. Like, you know, unfortunately — and I — we’re here to encourage as many people to take it up as possible — if 43 million borrowers take it up, that’ll be different than if 50 percent of those 43 million take it up.
Reporter: If it is 43 million, if I could just follow on — you know, if the full number of eligible borrowers do take advantage of the program, what would the cost be?
AMBASSADOR RICE: I — I can’t give you that off the top of my head.
Reporter: Thanks. Madam Ambassador, I have a couple of questions for you. One, I want to get your general response to this overwhelming chorus of critics — Republicans, right now — who say this is unfair, that there are people who decided to not go to college because they couldn’t pay for it, there are people who decided to join the armed forces in lieu of going to college because they couldn’t pay for it, and this leaves them behind. Is there inaccuracy in any of that?
AMBASSADOR RICE: Yes, there is inaccuracy, but there’s also a double standard. And this is a debate we are happy to have.
First of all, Republicans didn’t complain when certain small businesses during the pandemic got extraordinary financial relief and — without having to pay back those loans. But — when some businesses needed it and other businesses didn’t need it. This is the same principle.
We have a country where we all benefit when the middle and working class are doing well. This relief will be targeted to those who need it most. As I said, 90 percent of those who will benefit earn less than $75,000 a year.
So this is not a giveaway to rich people. This is not any of the things that Republican critics have charged. Yes, those who have paid their loans back deserve to be credited. That’s fantastic. That’s to their — to their credit.
But that doesn’t mean that those who are, for whatever reason, unable to pay back their loans — like, you know, one third of people have debt and no college degree. That doesn’t mean that because the — some were able to do so, nobody should help those who weren’t. By that logic, we wouldn’t help anybody in this country.
Reporter: … is there a worry that colleges will not now be incentivized to simply raise tuition rates since they know, both because of the cancellation but also because of the reduction in the maximum payment, that people will have to pay going forward? That should provide a buffer for colleges to just raise tuition because they know that more students will be able to afford the higher cost because their maximum will be — will be capped …
AMBASSADOR RICE: … you heard the President emphasize in his remarks and a key element of our plan is to ensure that colleges that have jacked up prices and taken advantage of students — particularly those that have made wild promises about how much people will be able to earn based on their degree program … that is something that Department of Education has already cracked down on and is going to continue to crack down on.
https://facebook.com/HygoNewsUSA/videos/1145309049529644
Rice: “Remains To Be Determined” cost of Student Loan Bailout, no effect on inflation, not giveaway to rich.