Biden administration staffers benefit from student loan bailout
Biden administration staffers reportedly stand to greatly benefit from President Joe Biden’s plan to cancel up to $20,000 per borrower in student loans.
A memorandum published by the American Accountability Foundation (AAF) reported that DOEd staff “could personally benefit by up to $512,646 in forgiven student loan principal balances and forgone interest payments” should $10,000 per borrower be forgiven.
Biden’s student loan plan will cancel $10,000 in student loans for borrowers who did not receive Pell Grants, and $20,000 for borrowers who did. Borrowers must make under $125,000 to be eligible for forgiveness.
The memo detailed that 41 DOEd staffers collectively owe between $2.8 million and $6.5 million in student loan debt.
According to Ballotpedia, the average White House salary tallies $102,095. Ballotpedia analysis also shows that 336 staffers make $119,999 or less, meaning more than 70% of 474 White House staffers could be eligible for the plan.
Additionally, 2021 White House financial disclosures, obtained by Bloomberg News last year, revealed that 30 White House staffers owe a collective student loan debt between $2 million and $4.7 million.
Founder of American Accountability Foundation, Tom Jones, told Campus Reform that “America’s colleges and universities are failing students by graduating them with increasingly expensive and increasingly useless degrees.”
“Adding insult to injury, the federal taxpayer is now on the hook to further subsidize these worthless degrees,” he continued. “Biden's loan bailout is another sign of the decade-long decline of American education and screams for a wholesale reform of American higher education."
The National Taxpayers Union Foundation (NTUF) reported that the plan could cost upwards of $400 billion. While NTUF acknowledges taxes will not “immediately” rise, it warns that the plan poses a risk to taxpayers through the potential for higher interest rates.
Campus Reform has reached out to all parties mentioned in this article for comment and will be updated accordingly.