Biden’s student loan write-off program faces new threat from Senate Republicans


Washington
CNN

President Joe Biden student loan cancellation program may face a new threat from Republicans in the Senate even before U.S. Supreme Court Rules about the possibility of its implementation.

Republican Sens. Bill Cassidy of Louisiana, Joni Ernst of Iowa and John Cornyn of Texas are planning submit a resolution cancel Biden’s debt relief program as early as this week, which promises up to $20,000 in debt relief for qualifying borrowers.

Biden is likely to veto the measure if it succeeds in both the Senate and the House of Representatives. But the votes will force members of his own party, not all of whom supported the student loan write-off program, to take a public stand.

The program is currently blocked. The Supreme Court is expected to make its decision in late June or early July.

“President Biden’s student loan scheme does not ‘forgive’ debt, it simply shifts the burden from those who volunteered for loans to those who never went to college or sacrificed themselves to pay off their loans,” Cassidy said in a statement.

Republican senators plan to introduce their resolution using the Congressional Review Act, which allows Congress to override executive orders without having to pass the 60 Senate vote threshold needed to pass most laws.

It was unclear whether the Congressional Review Act would apply to Biden’s student loan forgiveness program until the Government Accountability Office took a decision on the matter earlier this month.

Biden cast his first veto Last week in regards to the retirement investment resolution, which was also passed under the Congressional Revision Act.

While many key Democratic lawmakers have urged Biden to write off some federal student loan debt, not all party members supported him.

Sen. Katherine Cortez Masto, a Nevada Democrat who won a competitive re-election race last year, has previously criticized Biden’s forgiveness plan.

“I will review the full text of the CRA when it’s released, but as I said earlier, I disagree with President Biden’s student loan actions because they don’t address the root problems that make college unaffordable,” she said. Statement sent to CNN.

Her statement was first reported Wall Street Magazine.

Democratic Sept. Joe Manchin of West Virginia formerly called Biden’s student loan write-off programsurplus“. His office did not respond to a request for comment for this story.

Biden’s One-Time Student Debt Relief Program valued at $400 billion over time

Individual borrowers who earned less than $125,000 in 2020 or 2021, as well as married couples or heads of households who earned less than $250,000 per year, can receive forgiveness of up to $10,000 of their federal student loan debt.

If the eligible borrower also received a federal Grant Pella while in college, a person is eligible for debt forgiveness up to $20,000. Pell Grants are awarded to students from very low-income families who are more likely to have difficulty paying off their student loans.

While debt relief will help borrowers secure student loans now, the program will not change the cost of college education in the future, and some critics argue that it may even lead to an increase in tuition fees. Biden’s separate proposal, expected to go into effect later this year, would create new income-adjusted repayment plan this can lower monthly payments for both current and future borrowers.

Legal opponents of the student loan write-off program allege that the Biden administration is abusing its power and exploiting Covid-19. the pandemic as an excuse to fulfill the president’s campaign promise to write off student debt.

The White House said it received 26 million applications before a lower court in Texas blocked the program nationwide in November, and that 16 million of those applications were approved for relief, though no debt has yet been cancelled. Perhaps the government will quickly forgive these debts if it gets the green light from the Supreme Court.

If the judges cancel Biden’s student loan write-off program, the administration could make some policy changes and try again, though the process could take months.