The plan aims to save trillions of dollars over the next decade by dismantling several federal government programs, including the Biden administration’s program that intends to cancel up to $20,000 of debt per borrower.
Republicans in the United States have unveiled a plan to block President Biden’s student loan forgiveness program as part of their proposal to tackle the current debt-ceiling crisis
The program has already faced legal and political challenges since it was announced last year and is currently being reviewed by the U.S. Supreme Court. The Republican plan also calls for an immediate end to the payment pause that was implemented during the early days of the COVID-19 pandemic, which would require millions of federal student loan borrowers to begin repaying their debt. The proposal would also prevent the U.S. Secretary of Education from implementing future student debt relief programs without congressional approval.
However, the Republican proposal is unlikely to become law as it is expected to face opposition from both Senate Democrats and the White House. Melissa Byrne, executive director of the debt relief advocacy group We, The 45 Million, accused Republicans of trying to “hold the debt ceiling hostage and risk crashing the global economy” in order to harm 40 million student loan borrowers and their families.
Payments are likely to resume late this summer
Despite the outcome of the Republican proposal, the latest extension of the payment pause – the eighth so far – is set to expire 60 days after either June 30, 2023, or when the Supreme Court rules on the plan.
The Biden administration’s student loan forgiveness program has been a key focus for Democrats, with President Biden campaigning on the promise of providing relief for student loan borrowers. The program was initially intended to provide broad-based student debt relief, but it has faced opposition from Republicans who argue that it would be costly and unfair to those who have already paid off their debts.
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