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‘Then Why Not Address That?’: Fox News’ Sandra Smith Presses Democrat On Student Debt Forgiveness

[Screenshot/Fox News]

Nicole Silverio Media Reporter
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Fox News anchor Sandra Smith pressed Democratic California Rep. John Garamendi on Wednesday about the White House’s plan to cancel student debt.

President Joe Biden announced a program to forgive $10,000 in student debt payments for borrowers making less than $125,000 per year and $20,000 for those who received need-based Pell Grants. Garamendi called the plan “the right thing to do” for students struggling to pay off their loans, particularly those working in public service.

Smith pushed back when the representative described proposed legislation that would refinance student debt to lower the interest rates of the loans.

“Then why not address that, then?” Smith asked. “Why not address that, and why go the route of government spending in an era of sky-high inflation that will ultimately fall in the lap of lower income Americans, many of which didn’t rack up this debt and they’re gonna be on the hook for it?”

Garamendi said the debt cancelation will not increase inflation because most of the people receiving forgiveness are financially “on the edge.”

“It’s not an inflation issue, although everybody wants to holler about inflation,” he continued. “This is really an opportunity for these people that will receive these benefits to be able to get their act together. If you get out into the countryside and the cities and the like, you’ll find that these young men and women simply cannot get their life together. They’re delaying their marriage, they’re delaying the opportunities as they try to pay off this debt. This gives them a necessary break.” (RELATED: Martha MacCallum Spars With Biden Economic Adviser Over Inflation, Student Loans) 

“But address the lower income Americans who did not rack up this debt, did not graduate from college, who will see their taxes go up as a result and will pay more in taxes in the form of higher inflation,” Smith interjected. “Because you’re trying to say that more government spending will not lead to higher inflation? Is that correct?”

The representative claimed that the plan’s impact on inflation will be “small or even negligible.” Garamendi also argued that paying for the debt cancelation would not be an issue if “major corporations” paid a “fair” amount of taxes.

Lawmakers and economists have voiced their concerns about the impact student debt cancelation will have on inflation. In February, the Committee for a Responsible Federal Budget, a non-partisan agency, estimated that canceling student loan debt entirely would increase inflation by between 0.1 and 0.5 percentage points.

Garamendi further said the Inflation Reduction Act and infrastructure bill are opening up educational opportunities for the people who might otherwise have been forced to take on debt to pursue them.

Smith cited Republican lawmakers who said canceling student debt will lead to low-income and blue-collar workers paying more in taxes to benefit doctors and lawyers. She also cited Republican Maryland Gov. Larry Hogan, who said the plan is penalizing people who have worked hard to pay off their own debts.