“It’s a transfer”: Colorado GOP Senate candidate Joe O’Dea slams student loan forgiveness
COLORADO SPRINGS, Colo. (KRDO)-- President Joe Biden is making good on a campaign promise, forgiving up to $20,000 in federal student loans for Pell Grant recipients, and $10,000 in loans for non-Pell Grant borrowers. Individual borrowers must earn less than $125,000 a year, or less than $250,000 a year for couples.
But making good isn't always good, and in this case, especially in the eyes of Republicans.
"Don't be fooled by the word[s], 'debt relief', this is a transfer," Colorado Republican Senate candidate Joe O'Dea says. "They're transferring that payment to working Americans here."
O'Dea says from an economic standpoint, the move is a disaster. Adding it only increases the national debt. He views it as an additional tax, one he thinks he shouldn't be paying, especially after working overnight shifts to pay for his schooling at Colorado State University.
"Those people made the choice to go to school. They signed up for the debt that they took on. And they have a great opportunity with the rest of their lives to advance themselves because of the education that they got," O'Dea continued. "But that doesn't mean that I need to foot the bill."
O'Dea says this will cause further inflation and isn't fair to the middle class.
"I think it's unbelievable. These guys continue to pour more cash on the fire that's already hurting working Americans here."
Tatiana Bailey, an economist at the University of Colorado Colorado Springs says that is not necessarily true. She cites a study from the Wharton school at the University of Pennsylvania that shows that federal student loan forgiveness will likely benefit the middle class the most.
"It is primarily the middle class that's going to benefit from this," Bailey said. It's kind of complex why. But think about it, it's more likely middle-class people who go to universities. Unfortunately, our lowest 20%, I mean, it's sad, but I talked to kids who were like, 'no, I'm not going to college. There's no way my family can afford that.'"
O'Dea's opponent, Michael Bennet, is in favor of the move, adding the country needs to reform the system that got us here in the first place.
"Time and again, Coloradans have told me how student loans have made their lives miserable. They've devastated their credit scores, and made it harder to purchase homes, start a business, or pay for childcare and this crisis is only growing. That’s why in June, I urged President Biden to target relief to those who need it most, provide additional relief to Pell grant recipients, and enact long-term reforms to this broken system," Bennet said in a statement.
But some have already paid off these debts, and the question in the eyes of many is: is this new plan fair?
Biden was asked that by a reporter as he exited his press briefing Wednesday. He replied, "is it fair to people who, in fact, do not own multi-million-dollar businesses? [to] give them all these tax breaks? What do you think?"
Some though are arguing this doesn't go far enough. The head of the NAACP said Biden's move was disappointing, adding the average student debt right now in the country is $28,000 thousand dollars. But for black Americans, that number is almost double, at $53,000.
