Credit & Loans
GOP Bill Wants Student Loans Paid, Not Canceled
Senate Minority Whip John Thune (R-SD) and other GOP senators are introducing a bill preventing the cancellation of student loans. The bill aims to bar President Joe Biden from issuing an order wiping out outstanding student debt.
It also called on the President to lift all moratoriums on student loans so loan companies can resume collection.
RELATED: Will Biden Cancel Student Debt? Deluded Schumer Thinks Yes
‘Common Sense Legislation’
Thune filed the bill amid growing calls for Biden to arbitrarily cancel all existing student loans. In a statement, Thune explained that it was time to come back to reality.
“As Americans continue to return to the workforce, it is time for borrowers to resume repayment of student debt obligations. Taxpayers and working families should not be responsible for continuing to bear the costs associated with this suspension of repayment.”
The South Dakota senator added that the bill aims to protect ordinary American taxpayers. “This common-sense legislation would protect taxpayers and prevent President Biden from suspending federal student loan repayments in perpetuity,” he added.
Thune’s bill also received support from fellow Republican lawmakers. This includes Sens. Bill Cassidy (LA), Richard Burr (NC), Mike Braun (IN), and Roger Marshall (KS).
Bill Also Aims to Stop Biden From Continually Suspending Student Debt Payments
In addition, Thune’s bill will also set a limit on how long the Biden administration can suspend debt payments.
Also, the bill will exempt borrowers with income above 400 of the poverty line from any further moratoriums. Thune also wants to include congressional oversight in the student debt suspension process.
Former President Donald Trump first suspended student loan payments in May 2020 due to the pandemic. Biden followed suit, holding off payments multiple times during his first two years in office.
However, even as the economy continues to improve, the government has yet to signal the resumption of loan payments.
Progressives Want Complete Forgiveness Of Student Loans
Meanwhile, progressives from the Democratic Party are calling for the cancellation of all student loans. They want Biden to issue an executive order that wipes out all school loans.
They say that many graduates need to delay major life decisions because of debts hanging over them. Democrats also say that student loans disproportionately affect minorities.
Top Democrats and independent leaders in Congress are spearheading the movement to cancel student debt. This includes Senate Majority leader Chuck Schumer (D-NY) and Senator Bernie Sanders (I-VT).
Reportedly, Biden met with lawmakers last week to look at options of canceling school loans via executive action.
Previously, Biden expressed his preference that Congress take the lead in canceling or reducing student loans. Biden also went on record previously for saying he only approves forgiveness of up to $10,000 per student.
Majority of Americans Do Not Have College Degrees
Meanwhile, Republicans insist that the continued student debt moratorium bails out high-income earners at a time jobs are aplenty. Suspending payments is fiscally irresponsible and subverts the aims of Congress.
In addition, Sen. Bill Burr finds it hypocritical for the administration to continue suspending payments. Biden wants the American populace to return to normal.
However, he also continues to extend emergency relief programs. “They can’t have it both ways. Resuming student loan repayments is long overdue, especially in today’s strong job market,” he said.
Sen. Mike Braun agrees, noting that not everybody chose to borrow money for a college education. “The majority of Americans do not have college degrees.
Why should they be forced to pick up the tab for college degrees in the name of pandemic relief? This transfer of wealth is not a move to ‘advance equity,’ but rather a taxpayer handout to appease far-left activists.”
Watch the PBS NewsHour video reporting why Biden’s pledges of free college, waiving student debt remain unfulfilled:
Loading ...What do you think of Republican moves to prevent the administration from canceling student loans? Do you support the idea to resume the collection of loan payments, given that jobs are plentiful now?
Tell us what you think. Share your comments below.
2 Comments
Why can’t they resume payments with 0% interest for a 5 year period? Also the federal student loan program must be eliminated, let the colleges use their endowments, if you do that college costs will decline!!
This is the democrats latest attempt at buying votes. How is this even fair? I went to college and paid off all my loans on a teacher’s salary. Why should I have to help payoff someone else’s loan?
College isn’t for everyone. If you don’t plan on paying back loans don’t take em out