Politicians in Arkansas respond to CBO forecasts that forgiving student loans will cost billions of dollars

Little Rock, Arkansas – On Monday, lawmakers from Arkansas discussed the most recent Congressional Budget Office announcement.

Concerns regarding President Joe Biden’s offer of student loan forgiveness from August received a response from the U.S. CBO.

According to the U.S. CBO, the action that suspended payments, interest accrual, and involuntary collections from September 2022 to December 2022 will result in an increase in student loan debt of $20 billion.

According to the U.S. CBO, the present value of student loans will increase by an additional $400 billion after accounting for the suspensions.

This is due to the cancellation of $10,000 in student debt for borrowers who got a Pell award and those with income below a particular threshold, either prior to June 30, 2022, or on that date.

It is inherently unjust, according to governor Asa Hutchinson, who made the declaration via Twitter.

“It is fundamentally unfair to transfer $400 billion arbitrary student loan forgiveness to the generations of Americans who took a different path and will now owe for others debt,” said Hutchinson.

According to Sen. John Boozman, this is incredibly costly and an insult to hardworking taxpayers.

“This giveaway is incredibly costly and an insult to hardworking taxpayers, all at a time when government spending has sent inflation to record highs and families can’t afford to pay bills or buy food. Picking up this tab for future high-income earners is completely out of touch,” said Boozman.

According to Sen. Tom Cotton, servers and truck drivers are paying off loans.

“Biden’s student loan transfer means—at a time of record inflation—servers & truck drivers are paying off lawyers’ loans,” said Cotton.