Stop Biden’s Student Loan Bailout – Wisconsin Spotlight
MADISON — President Joe Biden is not offering student loan forgiveness. It pushes for the redistribution of the debt.
Congressional Republicans want to vet the president before he makes American taxpayers pay the bill for hundreds of billions of dollars in canceled student loans. First and foremost, they want to end its endless loan repayment freezes.
the Stop Irresponsible Student Loan Actions Act would end Biden’s untargeted suspension of repayments on eligible federal loans. While the bill would still give the president temporary authority to suspend repayment for low- and middle-income borrowers in future national emergencies, it would prohibit the president from canceling federal student loan obligations due to a national emergency. .
“The idea that the president can wave a magic wand and cancel student debt is constitutional folly,” Rep. Gallagher (R-Allouez) said. “To do so would increase the price of higher education, disproportionately benefit the wealthiest Americans, and unfairly punish every parent who has sacrificed and saved for their children’s education, let alone those who have already repaid their loans. “
On April 6, Biden announced his fourth extension to the suspension of eligible federal student loan repayments through August 31. He said when repayments resume, all borrowers with delinquent or defaulted federal student loans will be updated.
Reimbursements were originally scheduled to resume this month.
The sponsors of the bill – Meaning. John Thune, RS.D., Richard Burr, RN.C., Mike Braun, R-Ind., Bill Cassidy, R-La., and Roger Marshall, R-Kansas, say taxpayers have been beaten enough under this administration.
“As Americans continue to return to the workforce more than two years since the start of the pandemic, it’s time for borrowers to resume paying off student debt,” Thune mentioned in a report. “Taxpayers and working families should not be responsible for continuing to bear the costs associated with this suspension of reimbursement. This common-sense legislation would protect taxpayers and prevent President Biden from suspending federal student loan repayments in perpetuity.
Biden has shielded borrowers, holding a combined $1.7 trillion in debt, against about $5 billion in interest per month, according to the Federal Reserve. Liberal publication Salon insists that “these savings have been a lifeline for more than 40 million student debtors, of which 11.1% of pre-pandemic loans were in default or past due for at least 90 days.
But nothing in the bill would prohibit the U.S. Department of Education from continuing to work with people who may be struggling to make timely payments, such as helping borrowers complete loan-focused repayment plans. revenue.
The current suspension of federal student loan repayments disproportionately benefits the highest-paying borrowers and has cost American taxpayers billions of dollars.
- For example, physicians in debt have on average has received the equivalent of about $50,000 in rebate as of May 1, 2022, according to the Committee for a Responsible Federal Budget.
- According to Federal Reservethe net worth of households headed by college graduates skyrockets during the $23.4 trillion pandemic. Meanwhile, about two-thirds of households not headed by a college degree holder have seen an increase in net worth of only $3.5 trillion.
- Each refund extension has Cost taxpayers $5 billion a month, which is on top of the more than $100 billion Americans have already spent on this refund moratorium, according to the Department of Education.
- Before the pandemic suspension, high-income borrowers made three-quarters of student loan repayments, according to the Brookings Institution.
- According to the Committee for a Responsible Federal Budget, holders of a bachelor’s degree or higher hold 70% education debt – a population with an unemployment rate of only 2.2%.
“Congress can take action to prevent this massive abuse of executive power, and should do so by passing the Stop Reckless Student Loan Actions Act,” Gallagher said.