(Jacob Bruns, Headline USA) Rabid leftist Rep. Alexandria Ocasio-Cortez encouraged student loan borrowers to request refunds on payments made during the COVID pandemic, especially in light of President Joe Biden’s new student loan forgiveness program, Just the News reported.
According to the federal government’s website called Studentaid.gov, refunds of up to $20,000 are available to those who made payments during the spread of the coronavirus and the subsequent lockdowns.
“You can get a refund for any payment (including auto-debit payments) you make during the payment pause (beginning March 13, 2020). Contact your loan servicer to request that your payment be refunded,” the website reads.
“If you received a Federal Pell Grant, you may be able to get up to $20,000 of your federal student loans canceled based on your income,” the website continues. “Other borrowers may be eligible for $10,000 in loan cancellation based on income.”
AOC, who has long been a proponent of erasing all student debt, took to social media to advertise the new bailout programs to her constituents.
According to the self-described democratic socialist, individuals seeking bailouts should “request a refund for federal loan payments made since March 2020,” especially including “people who just learned that they will get their loan cancelled (through the Biden administration’s cancellation, PSLF, PSLF waiver or IDR waiver).”
The federal loans are expected to be cancelled in the next six to 12 weeks.
Despite the big promises, the Biden administration has remained decidedly silent on the question of who will pay for the student loan bailouts.
Bharat Ramamurti, deputy director of the National Economic Council, offered a partial explanation, suggesting that the bailout will be financed by reduction of the federal government’s massive deficit.
“It is paid for and far more by the amount of deficit reduction that we’re already on track for this year,” Ramamurti said.
“Like I said, we’re on track for $1.7 trillion in deficit reduction this year. That means, practically speaking, compared to the previous year, 1.7 trillion more dollars are coming into the Treasury than are going out.
“And we’re using a portion of that — a very small portion of it — to provide relief to middle-class families, consistent with the president’s plan.”
