WASHINGTON – The Senate on Wednesday advanced a measure that would invalidate the President Joe Bidenthe student loan forgiveness program even though he has promised to veto it if it reaches his desk.
Two Democratic senators from red states running for re-election next year joined everyone. republicans In support of the effort: Jon Tester from Montana and Joe Manchin from West Virginia. Senator Kyrsten Sinema (I) also voted in favor.
the biden plan would cancel up to $20,000 in student loan debt for borrowers earning less than $125,000 per year, providing relief to more than 40 million Americans. The Biden administration has claimed the authority to cancel loans under the HEROES Act of 2003 to provide debt relief during the COVID-19 national emergency.
The destination of the program will be it will probably be decided by the party dominated by the conservatives Supreme Court, which is expected to rule on a challenge next month. Opponents have argued that it is illegal and claimed that it would unfairly tax American taxpayers.
The estimated cost of Biden’s plan is $500 billion, though he downplayed it by suggesting it could be offset by other measures to reduce the deficit, including the Inflation Reduction Act. Republicans say more borrowing could lead to even higher inflation, hitting Americans’ pocketbooks.
“The Administration’s outrageous plan would transfer hundreds of billions of dollars in debt from the high-income doctors, lawyers and other professionals who chose to incur it to American taxpayers who wanted nothing to do with it,” the administration said. Senate Minority Leader Mitch McConnell (R-Ky.) said Wednesday.
democrats criticized the effort to repeal Biden’s student loan relief program, saying it would deny millions of student borrowers needed relief, not just those who attended elite schools. And they noted that the legislation the Senate advanced Wednesday would also undo Biden’s freeze on student loan payments that was originally halted by President Donald Trump in response to the coronavirus pandemic.
“Let me say that again, this is very important. This measure not only repeals the payment pause, but also forces many borrowers to make retroactive payments,” said Senate Majority Leader Chuck Schumer (DN.Y.).
Manchin has yet to announce whether he will run for re-election next year, but has already attracted several high-profile challengers, including West Virginia Gov. Jim Justice (R), who is popular in the Republican state.
In a statement released by his office after Wednesday’s vote, Manchin said that “we simply cannot afford to add another $400 billion to the national debt.” He added that “there are already more than 50 existing student loan repayment and forgiveness programs aimed at attracting people to vital service jobs, such as teachers, health care workers, and public servants.”
Tester’s office also issued a statement explaining his vote, saying he “knows that Montana students and youth continue to struggle with the high cost of student loans, but does not support the Biden Administration’s order to have taxpayers cover the account without addressing the root causes of the current problem. He believes we urgently need to address underlying college affordability challenges, such as reining in colleges that jack up prices to students.”
The Montana senator also hails from a state that voted heavily for Trump in 2020, and Democrats will need to defend their seat if they want to retain their Senate majority next year.
The Senate is expected to vote on final passage of the Republican resolution to void Biden’s student loan forgiveness plan in the coming days. The White House has said that Biden will veto the measure if it reaches his desk.
“Nearly 90 percent of the relief provided by the Department of Education would go to Americans making less than $75,000 per year, and no relief would go to any person or household in the top 5 percent of incomes,” he said. the White House in a statement. statement. Americans should be able to have a little more breathing room as they recover from the economic stresses associated with the COVID-19 pandemic.”
