Biden possibly canceling student loan debt sparks fight with Republicans

0

While President Joe Biden is reportedly considering taking executive action to forgive student loan debt, a group of Republican senators are assembling a bill that would prevent him from making such a move.

Senate Minority Whip John Thune, Sen. Richard Burr, Sen. Mike Braun, Sen. Bill Cassidy and Dr. Roger Marshall, a Kansas senator, jointly announced a bill on Wednesday that they called ” common sense bill”. The bill would prevent Biden from canceling student loan debt, place limits on how long an administration can suspend student debt payments, and add congressional review to any case where the president or secretary to education would suspend or defer federal student loan payments.

“Notwithstanding any other provision of law, the President or Secretary of Education may not cancel outstanding balances, or any portion of balances, of Covered Loans due to the COVID-19 national emergency or any other national emergency. “, says the bill. .

The legislation was announced as Biden faces growing pressure to ease the student debt burden for borrowers in the United States. turned that statement into reality.

The bill seeks to amend the Higher Education Student Aid Opportunities Act 2003, which the executive branch is said to have “misused” during the national COVID-19 emergency in relation to federal student loan breaks.

While President Joe Biden is reportedly considering taking executive action to forgive student loan debt, a group of Republican senators are fighting back with a bill that would prevent him from making such a move. Above, Senator John Thune (R-SD) speaks during a press conference following the weekly Senate Republican Policy Luncheon at the United States Capitol on April 05, 2022 in Washington, DC.
Anna Moneymaker/Getty Images

Under the proposed legislation, neither the president nor the secretary of education would be authorized to suspend or defer federal student loan payments for borrowers whose annual household income exceeds 400% of the poverty level.

According to the Department of Health and Human Services (HHS) Annual Poverty Guidelines for 2022, the poverty line for a one-person household in the 48 contiguous states and the District of Columbia was an annual income of 13,590 $. For this poverty line, 400% more would correspond to an annual individual income of $54,360.

In 2020, 62.3% of U.S. households had an annual income of at least $50,000, according to an income distribution chart from Statista. If the income distribution now is similar to the distribution in 2020, a majority of households could potentially be excluded from federal student loan payment suspensions or deferrals if the bill becomes law.

In a statement obtained by Fox News, Thune said, “As Americans continue to return to the workforce more than two years since the start of the pandemic, it’s time for borrowers to resume paying off student debt. Taxpayers and working families should not be responsible for continuing to bear the costs associated with this suspension of reimbursement.”

“This common sense legislation would protect taxpayers and prevent President Biden from suspending federal student loan repayments in perpetuity,” Thune added.

Last week, the Biden administration announced a new plan that would see immediate debt forgiveness for about 40,000 borrowers. But progressive Democrats have called on Biden to go even further by using his executive power to write off all student loan debt.

During an appearance on the ‘Pod Save America’ podcast earlier this month, White House press secretary Jen Psaki said Biden could decide whether or not to write off loan debt. student by September. He extended the federal student loan moratorium earlier this month until August 31, 2022.

PSAKI said on the podcast, which aired on April 15, that between then and August 31, the moratorium will be extended again or “we’ll make a decision” on canceling student debt, Newsweek Previously reported.

Newsweek contacted the White House and Thune’s office for comment.

Share.

About Author

Comments are closed.