While the constitutionality of President Joe Biden’s student loan bailout is awaiting a Supreme Court decision, a bill re-introduced by two House members would block the Biden administration from canceling student loan debt on a mass scale.
The Student Loan Accountability Act, authored by U.S. Representatives Mike Gallagher (R-WI-08) and Drew Ferguson (R-GA-03) would also prevent forgiven loans from getting an additional tax break and it would bar the Internal Revenue Service from sharing American’s tax information for the purpose of implementing mass loan cancelation.
President Joe Biden’s student loan forgiveness plan will be costly for American taxpayers, a coalition of GOP governors said in a letter sent Monday to the White House.
The letter, signed by 22 GOP governors, tells Biden to “withdraw” the plan, citing cost estimates of up to $600 billion, or $2,000 per American taxpayer.
“As governors, we support making higher education more affordable and accessible for students in our states, but we fundamentally oppose your plan to force American taxpayers to pay off the student loan debt of an elite few,” the coalition wrote.
Critics are taking Biden’s student loan forgiveness initiative to task because they believe it will only raise tuition in the future.
The Education Data Initiative reports that as of January 2022, in-state tuition and fees for a public 4-year university in Michigan climbed 3.31% in the last year. The cost for out-of-state tuition and fees climbed 2.76% during the same timeframe. The cost for room and board jumped a combined 10.59% in the last year.
With the Biden administration’s announcement this week that it would continue the moratorium on student loan payments through the beginning of next year and will forgive up to $20,000 in student loan debt per student, student loan forgiveness is at the top of the current political agenda. Meanwhile, there’s little talk about bringing the cost of college under control, or why the cost of college became so outrageous in the first place.
President Joe Biden is planning to forgive $10,000 of student loan debt per borrower, according to a Friday report from The Washington Post.
Biden intended to announce the new student debt forgiveness plan at the University of Delaware’s graduation ceremony Saturday but postponed the decision after a school shooting in Uvalde, Texas on Tuesday, unnamed sources familiar with the issue told The Washington Post. The newest debt forgiveness plan would apply to Americans who in the year prior made under $150,000 and to married Americans who made under $300,000 in joint filings.