Republicans slam Joe Biden and attempt to block student loan forgiveness plan
Joe Biden's administration has made student loan forgiveness a key policy issue to the ire of Republicans.
Joe Biden confused as he tries to leave stage following speech
Senate Republicans are taking President Joe Biden to task over his plan to cancel student loans.
Senators Bill Cassidy of Louisiana and John Thune of South Dakota were among a group of GOP policymakers who introduced a Congressional Review Act resolution last week.
This was done in an attempt by the White House to introduce an alternative, more affordable student loan repayment plan.
Over the summer, President Biden announced the Saving on Valuable Education (SAVE) following the Supreme Court striking down his debt cancellation policy.
As part of SAVE, borrowers' monthly payments are cut and balances are kept from growing to unpaid interest.
According to the US Department of Education, over four million people have already signed up for the scheme.
Despite this, Republican lawmakers are taking action to prevent the program from being a reality.
In a statement, Senator Cassidy voiced his opposition to SAVE and why it does more harm than good for Americans.
He shared: “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 loan.”
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However, this move from Republicans has received backlash from consumer advocate organisations.
Jaylon Herbin, the director of federal campaigns at the Center for Responsible Lending, slammed conservative politicians for their perceived failure to help certain groups.
Mr Herbin explained: “We condemn this move to block a plan that will provide significant financial relief to low-income borrowers and communities of colour.”
Following the Covid-19 pandemic, the US Department of Education has warned that millions of students have been left financially worse off.
The SAVE program is the latest iteration of the Biden administration's attempt to mitigate the economic situation for young people.
Under the Congressional Review Act, which Republicans are using, Congress can block new regulations with a joint resolution from the House and Senate.
Despite this, whoever is President can veto the resolution and allow the regulation to pass through.
Based on this, higher education Mark Kantrowitz told CNBC that “this attempt to block the SAVE plan will not be successful”.
