Biden’s College-Loan Writeoffs are Unfair, Irresponsible — and Illegal; House votes to cancel Biden’s $400 billion student loan handout

Biden’s college-loan writeoffs are unfair, irresponsible — and illegal:

When scholars at the conservative Heritage Foundation reach the same negative conclusion about a Biden administration proposal as scholars at the liberal Urban Institute, you can be sure the policy proposal is bad, even by Washington standards.

The policy in question: the Biden administration’s revised plan for repaying federal student loans.

Payments are based on borrower incomes.

Borrowers with incomes below 225% of the federal poverty level (approximately $30,600 a year, according to the Department of Education) would have no loan repayments.

Those with incomes above $30,600 will pay back just 5% of income earned above the income floor.

The new “Revised Pay As You Earn” plan, the administration calculates, will cost “only” $138 billion over the next decade, but independent experts foresee far higher costs — ranging from $361 billion over 10 years (per the Penn Wharton Budget Model) to as much as $1 trillion (as estimated by Travis Hornsby, CEO of Student Loan Planner, a firm that helps students manage their “monster student-loan debt”).

Several words beginning with “I” describe the plan: illegal, inequitable and irresponsible. ––>READ MORE HERE

House votes to cancel Biden’s $400 billion student loan handout

Only two House Democrats voted with the GOP to scrap Biden’s plan

The House voted Wednesday to repeal President Biden’s plan to forgo more than $400 billion in federally backed student loan debt.

Lawmakers approved a resolution disapproving of Biden’s student loan forgiveness plan that was announced last year and is now stalled because of an ongoing legal challenge. The Supreme Court is expected to consider the legality of Biden’s plan later this summer.

On Wednesday, lawmakers voted 218-203 in an attempt to speed up the process and end Biden’s plan through legislation. Every Republican present voted to pass the resolution, along with just two Democrats.

During floor debate, Democrats argued that voting to end Biden’s plan would hurt the roughly 13% of Americans who are likely to qualify for loan forgiveness.

“At a time when students need relief the most, Republicans are working to upend student loan forgiveness that started under Trump and now continues under President Biden for more than 40 million borrowers,” said Rep. Mark Takano, D-Calif.

“Why for the love of God do Republicans want to continue to punch down on America’s students and divide our country?” he asked. “The Biden administration’s student debt relief plan is not a bailout, it is a lifeline, and I implore my Republican colleagues in Congress to speak with borrowers in their own districts about this very issue.”

Another Democrat, Rep. Maxwell Frost of Florida, argued that Republican opposition to Biden’s plan was based on the argument that most Americans don’t need loan repayment aid, and said by that logic, women and Black people would never have been allowed to vote. —>READ MORE HERE

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