GOP lawmakers oppose Biden administration’s latest student loan forgiveness effort.
Republicans Introduce Measure to Repeal Biden’s Student Loan Forgiveness Efforts
Over a dozen Congressional Republicans have taken a stand against the Biden administration’s latest student loan forgiveness efforts. They argue that these efforts would burden taxpayers with over $500 billion of debt.
In June, President Joe Biden’s $430 billion student debt relief plan was struck down by the U.S. Supreme Court. In response, the administration unveiled an income-driven repayment (IDR) plan. This plan allows borrowers to repay their debt based on income and family size, with the remaining balance forgiven after ten years of payments for those with less than $12,000.
“Once again, Biden’s newest student loan scheme only shifts the burden from those who chose to take out loans to those who decided not to go to college, paid their way, or already responsibly paid off their loans,” said Sen. Bill Cassidy (R-LA).
Sen. Cassidy, along with 16 Republican colleagues, introduced a Congressional Review Act (CRA) resolution to overturn the “reckless” Saving on a Valuable Education (SAVE) plan. This plan would relieve the principal amount on primarily bachelor’s degree student loans, potentially costing taxpayers as much as $559 billion.
The lawmakers argue that under the SAVE plan, 91% of new student debt would be eligible for reduced payments, with taxpayers eventually shouldering $0.50 on every $1 borrowed.
“Our resolution protects the 87% of Americans who don’t have student debt and will be forced to shoulder the burden of the President’s irresponsible and unfair policy,” Sen. Cassidy added.
According to the Penn Wharton Budget Model, the IDR rule would disperse billions of dollars annually to community college students expecting debt relief. Lawmakers argue that this would turn the federal student loan financing system into a poorly targeted, taxpayer-funded grant program.
Reps. Lisa McClain (R-MI) and Virginia Foxx (R-NC) have called the Biden administration’s student loan plan a ”scam” and the costliest regulation in U.S. history.
“The only difference between President Biden and a snake oil salesman is a title,” said Foxx and McClain. “Biden’s administration knows what it’s doing is illegal, but it’s pushing forward anyway, promoting its SAVE scheme as a solution to America’s broken student loan system. In reality, the SAVE scheme is a desperate effort to curry favor and buy votes ahead of the next election.”
Both Congressional Republicans and Democrats have criticized the president’s student loan relief efforts. GOP lawmakers argue that these plans overlook the underlying issues that have led to the skyrocketing cost of college and increasing student debt.
It remains uncertain if Majority Leader Sen. Chuck Schumer (D-NY) will bring the CRA to the floor for a vote, considering his opposition to Republicans’ previous attempt to shut down Biden’s student loan forgiveness program before it was overruled by the Supreme Court.
So far, the Biden administration has forgiven approximately $116 billion in student loans for over 3.4 million people.
After the Supreme Court blocked the president’s initial student debt relief plan, Biden vowed to “stop at nothing to find other ways to deliver relief to hard-working middle-class families.”
Last week, officials canceled $72 million in student loans for about 2,300 borrowers who attended Ashford University, an online for-profit school that has since been acquired by the University of Arizona.
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