Smith, McCallian disagree on student loan forgiveness

Southeast Missouri congressman Jason Smith, R-8, has condemned as inflationary President Joe Biden's plan — announced Wednesday — to cancel up to $10,000 in federal student loan debt for borrowers making less than $125,000 annually and to forgive up to $20,000 for Pell Grant recipients.

Jason Smith

"The Biden Administration — whose own Office of Management and Budget just increased their 2022 inflation projections and lowered their economic growth projections — has now unveiled a plan that will throw more fuel on the inflation fire," said Smith, who has represented 30 counties in southern and Southeast Missouri since 2013.

Smith, who is ranking Republican on the U.S. House Budget Committee, also indicated he smells election-year politics in the president's executive order this week.

"President Biden and Washington Democrats are engaged in a desperate pander to their far-left political supporters with this massive financial handout to wealthy individuals with graduate degrees, who hold more than half of all student loan debt," Smith said.

"Under this plan, 87% of adults without student loans will be forced to bail out the 13% of adults who chose to take on loans."

Randi McCallian

Smith's 8th District Democratic opponent in November, political newcomer Randi McCallian, who is self-described on www.Ballotpedia.com as a program director in multistate maternal and child health, views the Biden initiative positively.

"The current administration's policy isn't perfect but it's a step in the right direction," said McCallian, who hails from Edgar Springs, Missouri, in Phelps County, in an email to the Southeast Missourian.

"The (forgiveness) decision will put hard-earned money back into the pockets of working-class Americans instead of padding the profits of corporate greed. Freeing up expenses will help cover the cost of fuel and food until falling prices can get back to normal," added the 2008 graduate of Drake University.

McCallian said skyrocketing costs have made college unattainable for many in the local district, quoting an unattributed statistic that 14.6% have a college degree in District 8 compared to the national average of 28%.

"While it is true my district will not feel the impact of this relief as will others, the problem we face here is the lack of educational opportunity. When it comes to higher education, the cost of college has increased 180% over the past 40 years," she said.

Southeast Missouri State University's David Yaskewich, who leads Southeast Missouri State University's Accounting, Economics and Finance Department, said he wonders about the precedent Biden's action may set.

"If we forgive student loan debt now, would anyone anticipate it happening [again] in the future? There might be some expectation that future debt might be forgiven," said Yaskewich, SEMO faculty member since 2012.