Republican legislators announced Tuesday that they are introducing a resolution under the Congressional Review Act (CRA) to halt President Joe Biden’s new student loan plans, which they argue places an undue burden on the American taxpayer.
Biden introduced his “Saving on a Valuable Education” (SAVE) plan on Aug. 22, which approved $116.6 billion in student debt forgiveness for over 20 million Americans, according to a White House fact sheet. Sens. Bill Cassidy of Louisiana, who is the ranking member of the Senate Health, Education, Labor and Pensions (HELP) Committee, John Thune of South Dakota and John Cornyn of Texas, however, introduced the CRA to reverse the president’s “reckless” new student loan plans, which they claim violate a Supreme Court ruling in June on this issue, according to the press release. (RELATED: Biden Admin Begins Wiping Away Billions Of Student Debt For Thousands Of Borrowers)
“Once again, Biden’s newest student loan scheme only shifts the burden from those who chose to take out loans to those who decided not to go to college, paid their way, or already responsibly paid off their loans,” Cassidy said in the press release. “Our resolution protects the 87 percent of Americans who don’t have student debt and will be forced to shoulder the burden of the President’s irresponsible and unfair policy.”
US President Joe Biden announces student loan relief on August 24, 2022, in the Roosevelt Room of the White House in Washington, DC. (Photo by OLIVIER DOULIERY/AFP via Getty Images)
Biden’s new Income-Driven Repayment (IDR) plan would adjust American’s monthly payments “based on a borrower’s income and family size – not their loan balance,” according to the factsheet. The administration boasted that the program will prevent many borrowers from making monthly payments at all, while undergraduate students could have their “payments reduced from 10% to 5% of their discretionary income.”
Republicans, however, raised concerns that the White House’s plan will encourage more Americans to take on debt with the promises of relief and would “turn the federal student loan financing system into a poorly targeted taxpayer-funded grant program.”
“Instead of creating a real plan to lower the costs of higher education, President Biden continues to propose budget-busting student loan bailouts that would force 87 percent of Americans who do not have student loan debt to bear the costs of the 13 percent of Americans who do,” Thune said in the press release. “It’s incredibly unfair to those who never incurred student debt because they didn’t attend college in the first place or because they either worked their way through school or their family pinched pennies and planned for higher education. I’m proud to join my colleagues in introducing this resolution that would overturn President Biden’s latest misguided and fiscally irresponsible student loan bailout.”
The Supreme Court ruled against the Biden administration in the case of Biden v. Nebraska and Department of Education v. Brown, arguing that the president did not have the authority under the “Health and Economic Recovery Omnibus Emergency Solutions“(HEROES) Act to enforce his nearly $40 million loan forgiveness program. Biden’s SAVE Act is the president’s latest attempt to move his student loan agenda forward, though it is not through the HEROES Act.
The White House did not immediately respond to the Daily Caller News Foundation’s request for comment.
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