Biden Student Loan Bailout Faces New Threat While in Legal Limbo

• A new legislation proposed by Republican Representative Bob Good of Virginia and Republican Senator Bill Cassidy of Louisiana threatens to overturn President Joe Biden’s student loan forgiveness program.
• The GOP resolution is aimed at halting the program, which is currently being contested in court, by expressing opposition to Biden’s plan to cancel student debt.
• “The student loan forgiveness plan is just one of several costly moves by the Biden Administration which continue to drive up inflation. Representative Good’s Joint Resolution will allow Congress to formally revoke the authority claimed by the administration to forgive loans,” as explained in a press release.
• Senator Cassidy stated in a press release that the president’s program doesn’t aim to forgive debt but to put the burden of student loans on those who didn’t go to college or have already paid off their loans.
• The resolution can be passed with a simple majority in the Senate, but it is expected to be vetoed if that occurs.

Why It Matters

• According to the White House, around 26 million Americans have already applied for student loan forgiveness, with 16 million being approved for relief.
• However, legal battles have thwarted any debt cancelation from taking place, and a resolution opposing the loan forgiveness program may not be passed. Even if it is, it is unlikely to alter the opinions of President Biden and other key figures in his administration. Nevertheless, it will make it more difficult for the president to implement the plan before the 2024 presidential election.