Biden Announces CONTROVERSIAL New Plan – Lawmakers React!
(RepublicanPress.org) – When Joe Biden was running for president, one of his campaign promises was that he would cancel student debt if elected. Ever since he moved into the White House, Democrats have been wondering when he intended to follow through on his word. On August 24, the US leader announced educational loan relief for millions across America. However, the plan has gotten some mixed reactions.
Details of the Plan
The Biden administration released a fact sheet with details of the relief program, who it affects, and its purpose. For non-Pell Grant borrowers earning less than $125,000 annually, $10,000 will be erased from their obligation balance. Pell Grant recipients in the same income bracket will see $20,000 disappear. Married couples can make double the income per year and still receive relief.
In addition to the cancelation amount, the president extended the federal student loan repayment reprieve until the end of the year. Payments will begin again in January 2023, with no more extensions planned.
According to the fact sheet, income-driven repayment plans will likely be capped at “5% of a borrower’s discretionary income.” This now sits at 10% for not only those who already owe money for their college education but also future students.
In the White House’s Roosevelt Room, Biden reasoned that the cost of college tuition is too high and the “burden is so heavy” that many Americans are simply crushed under its massive weight. According to the Education Data Initiative, federal student loan debt averaged just under $38,000 in 2021, held by around 43 million people across the nation.
Reactions to the Measure
After the announcement, some lawmakers were quick to applaud the move. For instance, Senator Elizabeth Warren (D-MA) called the day of the reveal a “day of joy and relief.” Meanwhile, Senator Bernie Sanders (I-VT), who has long been pushing for loan debt cancelation, called it an “important step forward” in a recent Tweet.
Although Democrats largely pushed the hardest for the president to fulfill his promise, celebrating the victory, will it be enough for them? Some on the Left may feel Biden didn’t go far enough, as they recently called for the complete elimination of student loan debt. Others, like Sanders, still said in his Tweet that he believes there’s more to be done.
Republicans see the move as largely “unfair,” according to NBC News because those who already paid off their loans in full and others who never even went to college get no help at all. The GOP fears the cost of forgiving loans, even in part, will worsen the already out-of-control inflation and negatively affect the economy for everyone.
NBC reported that Senate Minority Leader Mitch McConnell (R-KY) simply stated if you borrow money from a bank, you should “pay it back” without a handout from the government.
What do you think of the student loan forgiveness announcement?
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