Biden’s Student Loan Forgiveness Plan Criticized By Republicans And A Few Democrats
President Biden’s plan to forgive between $10,000 and $20,000 of student loan debt for borrowers making less than $125,000 a year has incurred criticism from Republicans, some economists and even some Democrats.
The plan, the White House says, will benefit up to 43 million Americans, wiping out billions of dollars of student loan debt. But critics of the debt cancellation argue it will contribute to already high inflation, does nothing to help low-income people who never attended college, is unfair to people who already paid off their student debt, doesn’t address the underlying cost of college and even could be struck down by courts.
Limits On Executive Authority
The Republican bill would prohibit the Biden administration from using executive authority to enact mass debt cancellation. It would also tie Education Secretary Miguel Cardonas hands, preventing him from enacting any changes to the federal student loan program that would increase costs to the federal government.
Last Friday, a Government Accountability Office report was released that found that over the last 25 years, the federal student loan program has actually cost the government $311 billion, when the Education Department said it had earned the government $197 billion between 1997 and 2021. Republicans expressed outrage over the findings in the report.
Any way you look at it, the claim that the federal government profits off student loan borrowers is false. Taxpayers have lost hundreds of billions of dollars on this program, said a group of Republican lawmakers in a statement on the report.
The legislation would also prevent Cardona from extending the current pause on student loan payments, from issuing waivers to federal student loan programs , and from issuing new repayment plans.
White House Calls Out Republicans Who Criticized Student Loan Cancellation But Had Thousands In Ppp Loans Forgiven
The White House is not taking criticism of the decision to forgive student debt lying down. After some Republican lawmakers tweeted or went on broadcasts to condemn the decision, the White House Twitter page responded by quote tweeting their comments and sharing just how much each of them benefited from having their Paycheck Protection Program loans forgiven.
The uncharacteristic Twitter thread from the White House came shortly after President Biden announced his plan to erase thousands of dollars in student loans, a move that will help more than 40 million people who have a combined $1.7 trillion in student loan debt. Under the plan, borrowers who earn less than $125,000 will be eligible to have $10,000 in student loan debt forgiven. Those in that income range who had Pell Grants in college will be eligible for an additional $10,000 in forgiveness.
It was a decision that triggered criticism from GOP lawmakers, and even a few Democrats.
GOP Rep. Marjorie Taylor Greene went on NewsMax to talk about Mr. Biden’s plans, and said that forgiving student loans isn’t fair for those who didn’t go to college.
Congresswoman Marjorie Taylor Greene had $183,504 in PPP loans forgiven.
The White House
The White House then called out her and others who benefited from their own loan forgiveness through the Paycheck Protection Program.
Now Eating: Green Chile Chicken Stew
I made this for dinner a few nights ago and the kids loved it, which to my mind is the highest possible recommendation. I would not use canned chiles for this recipe if you cannot find fresh Hatch chiles, buy Anaheim chiles to roast, peel and chop. About four large chiles will make one cup, although you can always add more. I also added a heaping teaspoon of Mexican oregano to the dish. Recipe from NYT Cooking.
Warm flour or corn tortillas, for serving
Lime wedges, for serving
Season chicken generously with salt and pepper. Heat oil in a Dutch oven or heavy-bottomed pot over medium-high heat. Dredge chicken in flour and shake off excess. Brown chicken well on both sides, then remove and set aside.
Add onions to pot, season lightly with salt and cook, stirring, until softened and beginning to brown, 6 to 8 minutes. Add garlic and cumin, and cook for 1 minute. Then add chopped chiles and chicken stock and bring to a boil.
Return chicken to pot reduce heat to a brisk simmer, and cook, covered with lid ajar, for 30 minutes. Add potatoes and carrots and cook for 20 to 25 minutes more, until vegetables are soft but not falling apart.
Skim fat from surface of sauce. Taste for seasoning and adjust salt. For a thicker sauce, add dissolved cornstarch and stir well. Cook for 1 minute more.
Serve in deep wide soup plates with plenty of sauce. Sprinkle with chopped cilantro. Serve with warm tortillas and lime wedges.
Mitch Mcconnell Joins Republicans In Railing Against Biden’s ‘cynical And Outrageous’ Student
Biden announced $10,000 in student-loan forgiveness for borrowers making under $125,000 a year.
Mitch McConnell slammed the relief, calling it “astonishingly unfair.”
Republicans have long criticized broad student-debt relief plans, calling them costly and unnecessary.
After over two years, student-loan relief has finally arrived for millions of federal borrowers. Republicans aren’t happy.
On Wednesday, President Joe Biden announced he will be canceling $10,000 in student debt for borrowers making under $125,000 a year, along with up to $20,000 in relief for Pell Grant recipients. While this move was lauded by many Democratic lawmakers and advocates with some continuing to push for even more relief Republicans like Senate Minority Leader Mitch McConnell were less than pleased with the president’s announcement.
“President Biden’s student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our Armed Forces in order to avoid taking on debt,” McConnell wrote in a statement. “This policy is astonishingly unfair.”
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What Should Republicans Do If Biden Forgives Student Loans
2020 Democratic presidential hopeful former US Vice President Joe Biden speaks during the Women’s … Leadership Forum Conference on October 17, 2019 in Washington DC.
AFP via Getty Images
President Biden privately signaled to Democratic lawmakers that he is open to canceling some federal student loans by executive order, according to the Washington Post and CBS News. This is a terrible idea on the merits, as student loan forgiveness would mostly benefit wealthier households and create perverse incentives for colleges to push more loans on students on the credible assumption they will be canceled. Bidens authority to cancel loans by executive fiat is also legally dubious, but that may not stop him.
However, the most egregious aspect of the whole idea is that while President Biden may grant loan forgiveness to millions of current borrowers, the federal government is slated to make over $1 trillion in new student loans over the coming decade. The White House has presented no plan to reduce new student loan volume, even as it actively considers canceling some of the existing loan portfolio.
Congress cannot conscionably allow this to become the status quo. Therefore, if President Biden chooses to cancel student debt by executive order, congressional Republicans should immediately act to rein inor abolishthe federal student loan program.
Student Loans: Final Thoughts
Republicans havent supported wide-scale student loan forgiveness for all student loan borrowers. While Democrats are leading the charge on wide-scale student loan cancellation, Republicans have helped passed student loan relief and proposed several ways to reshape student loans and bring more financial relief to student loan borrowers. The future of student loans and student loan forgiveness will be impacted by both Republicans and Democrats working together to achieve a bipartisan solution. There are good intentions and ideas on both sides, but gridlock can be avoided when practical solutions that appeal to both parties are adopted. Biden has said he will sign legislation on student loans, student loan forgiveness, student loan relief and student loan cancellation as soon as Congress passes legislation. The clock is ticking.
With temporary student loan relief ending soon, make sure youre prepared to restart student loan repayment. Learn all your options. Here are some popular ways to pay off student loans faster:
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Will Biden Cancel Student Loans
A group of Senate Democrats led by Sen. Elizabeth Warren, D-Mass., and Senate Majority Leader Chuck Schumer, D-N.Y., introduced a resolution on Feb. 4 urging President Biden to use his executive authority to “broadly” cancel up to $50,000 worth of student debt per borrower the legislation did not mention an income cap.
Although the president has not yet commented on this resolution, White House Chief of Staff Ron Klain recently said that Biden is considering how he can provide student loan relief before forbearance expires in May.
“I think the president’s going to look at what we should do on student debt before the pause expires, or hell extend the pause,” said Klain.
Notably, Biden did not mention student loan cancellation during his State of the Union address. With no clear promise of debt forgiveness, borrowers may need to start preparing their finances for federal student loan payments to restart as scheduled.
One way to reduce your monthly student loan payments is to refinance to a private loan at a lower interest rate. Keep in mind that refinancing your federal student debt would make you ineligible for income-driven repayment plans, deferment programs, COVID-19 administrative forbearance and federal student loan forgiveness programs. You can learn more about student loan refinancing by visiting Credible.
More: Justice Department Makes Redacted Mar
Stephanopoulos also asked about the affidavit used to justify the FBI search of former President Donald Trump’s Mar-a-Lago home earlier this month in relation to sensitive and classified documents that the government says he took with him when he left the White House.
A redacted copy of the affidavit was released late last week and shows that at least 180 classified documents were recovered from Trumps estate by the National Archives and Records Administration in February, some of which were labeled as “top secret.”
“It’s just incomprehensible to me,” Sanders said in response. “But then again, when we talk about President Trump, there’s a lot of incomprehensible things.”
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Student Loan Cancellation: Why End Student Loan Forgiveness
Biden and some Republicans in Congress have disagreed over the future of student loan forgiveness. Supporters of public service loan forgiveness recognize the program needs to be fixed. However, they believe the program is essential student loan relief for police officers, firefighters, servicemembers, teachers, nurses and other public servants. Democrats also recognize that ending student loan forgiveness for public servants could discourage student loan borrowers from seeking public sector and non-profit careers. Republicans who oppose student loan forgiveness want the federal government to save billions of dollars. They believe student loan forgiveness is unfair wealth redistribution, which benefits high-income earners and hurts Americans who didnt attend college or who dont have student loans. Since Democrats control Congress and the White House, this proposed legislation likely wont become law in the near term. However, other components of the proposed bill, such as the elimination of capitalized student loan interest, could be included in broader student loan reform.
Student Loan Payment Pause: Student Loan Relief Is An Insult
President Bidens perpetual student loan payment moratorium is an insult to every American who responsibly paid debts, Sen. Tom Cotton tweeted Tuesday.
Sen. Tom Cotton on the student loan payment pause
Sen. Tom Cotton – Twitter
For Cotton, student loan repayment means personal responsibility and borrowers should repay their debt. Cotton says the extension of the student loan payment pause is a terrible idea. If student loan borrowers dont meet their financial responsibility, Cotton has argued, the government would be stuck paying student loan debt for individual borrowers which is unfair. .
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Bidens Decision To Forgive Some Student Loan Debt Sparks Controversy
Mike Noble, who has conducted extensive independentpolling in Nevada and Arizona, among other states, said the timing of Bidens announcement was a head-scratcher, given that Democrats were just hitting their stride: Gas prices are coming down, the Republican Party is increasingly divided, Donald Trump is dominating headlines again, and abortion rights are fueling fundraising and party enthusiasm.
It doesnt make strategic sense. They were in a good position. All the momentum was going in their favor, Noble said of Democrats. Noble said debt forgiveness tends to be most popular with younger voters, while a far older electorate votes most consistently in midterm elections.
Why forgive debt on a group that never turns out to vote in the first place? The people who vote are the ones who paid their loans back or never had loans to begin with.
Biden took executive action Wednesday to forgive up to $10,000 in debt for individual federal loan borrowers who make less than $150,000 a year and up to $20,000 for recipients of Pell Grants, which are intended for students facing the greatest financial need. He was running up against a deadline of next Wednesday to extend an existing moratorium on student loan payments.
Clark County, the home of Las Vegas, is packed with working-class constituents in the entertainment and food industries.
Johnsons campaign quickly linked debt forgiveness to the radical left.
Now, its 25 points, Franklin said.
‘student Loan Debt Is Crushing Millions’
About 36 million borrowers would have their student loan debt wiped out if the U.S. government cancels $50,000 in student loan debt, according to data from the U.S. Department of Education shared by Sen. Elizabeth Warren, D-Mass. About 15 million borrowers would have their debts wiped out under a plan to forgive up to $10,000 in student loans.
“I got my degree at a public commuter college that cost $50 a semester. This was a quality, public education that I could afford on a part-time waitressing salary and it opened a million doors for me. It’s how the daughter of a janitor got to become a teacher, a law school professor and a U.S. Senator,” Warren said in a statement to CNBC Make It.
But it’s virtually impossible for college students to find that kind of opportunity today, she says. “Student loan debt is crushing millions, especially during this pandemic. It’s an anchor dragging down our struggling economy.” That’s why Warren is leading the charge to have President Biden immediately cancel up to $50,000 in federal student loan debt, she says.
But not everyone will benefit. Private student loans are not included in the any of student loan forgiveness proposals put forward so far. Regardless, many believe student loan forgiveness would help close wealth gaps and lift a massive burden from millions of Americans.
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The Federal Student Loan System Is Broken
Republicans claim that the system for federal student loans is broken. . Currently, any student loan borrower can qualify for a federal student loan that the federal government issues. There are no credit score requirements to qualify. As a result, the federal government doesnt underwrite any federal student loans. This means every borrower gets the same interest rate, regardless of their underlying credit risk. . While access to higher education is an important goal, Republicans have argued that lending to all borrowers who cant afford their student loans has inherent default risk for the federal government. When access to federal student loans is easy, Republicans argue that colleges and universities have an incentive to keep raising tuition. This makes college more expensive and increases the chances of student loan default, ultimately hurting student loan borrowers.
Pay Off Student Loans With Your 401k
Sen. Rand Paul proposed the the HELPER Act so that you could pay student loans with a 401K. Under the HELPER Act, you can withdraw up to $5,250 from your 401 or IRA annually to pay for college or to pay off student loan debt. First, you could make these withdrawals tax-free and penalty-free. Second, the HELPER Act would enable you to pay tuition for a dependent or a spouse. Third, employer-sponsored student loan and tuition plans would become tax-free up to $5,250 annually. Fourth, there would be no cap on the student loan interest deduction. Fifth, the legislation could encourage more student loan borrowers to save money in a 401k or retirement plan to pay off student loans. While Congress hasnt passed the HELPER Act, it could revolutionize the future of student loan repayment and make it easier for student loan borrowers. .
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You Dont Have To Plan For College Alone
With student loan debt now exceeding what Americans owe on credit cards or home and auto loans, students facing their economic futures need more guidance than ever to tackle college costs. CollegeFinance.com can help you plan for your fiscal future and make informed decisions about how to pay for school.
Plan for a successful postsecondary path by visiting CollegeFinance.com for detailed and relevant information on everything from scholarships to refinancing options. While we cannot tell you who to vote for, we can certainly help you get the facts on what financial path works best for your college dreams.
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