Many Republicans have responded negatively to President Joe Biden’s announcement of his student loan forgiveness plan.
As IJR previously reported the president outlined a plan that would forgive up to $20,000 per borrower and allows for an extension of the COVID-era pause on payment requirements. The plan also allows for a cap on payments equal to 5% of the borrower’s monthly income for those with undergraduate loans.
Republican National Committee Chairwoman Ronna McDaniel reacted to the announcement saying, “According to the Penn Wharton Budget Model, Biden’s loan bailout would cost between $300-$980 billion. The majority of money would go toward the top 60% of earners.”
According to the Penn Wharton Budget Model, Biden’s loan bailout will cost $300 billion.
— Ronna McDaniel (@RonnaMcDaniel) August 24, 2022
The majority of money will go toward the top 60% of earners.
Senate Minority Leader Mitch McConnell (R-Ky.) spoke to the issue saying, “Washington Democrats have found yet another way to make inflation even worse, reward far-left activists, and achieve nothing for millions of working American families who can barely tread water,” according to Fox News’ Chad Pergram.
“President Biden’s student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who volunteered to serve in our Armed Forces in order to avoid taking on debt,” McConnell said.
2) McConnell: “President Biden’s student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who..volunteered to serve in our Armed Forces in order to avoid taking on debt.
— Chad Pergram (@ChadPergram) August 24, 2022
Not every negative response was from Republicans, however. CNBC contributor Alex Kantrowitz responded saying the move “sends a terrible signal to everyone who paid their debt and is paying their debt. And to all schools who pass runaway costs to those who can’t afford them … The fact that the rest of U.S taxpayers now have to pick up the tab is frankly insane.”
Sends a terrible signal to everyone who paid their debt and is paying their debt. And to all schools who pass runaway costs to those who can’t afford them https://t.co/qN5NvA9YJ2
— Alex Kantrowitz (@Kantrowitz) August 24, 2022
The fact that the rest of U.S taxpayers now have to pick up the tab is frankly insane.
— Alex Kantrowitz (@Kantrowitz) August 24, 2022
Sen. Bill Cassidy (R-La.) also weighed in: “President Biden didn’t ‘forgive student debt,’ he chose to shift the burden of the well-off onto the backs of the 87 percent of Americans who chose to not go to college, already paid off their loans, or saved to not take them out in the first place. This decision is a spit in the face of Louisiana families who are struggling to get by.”
This decision is a spit in the face of Louisiana families who are struggling to get by. This spends at least $300 billion we do not have which will make inflation worse. It does nothing to get at the root problem of the high price of education while costing $2,000 per taxpayer.
— U.S. Senator Bill Cassidy, M.D. (@SenBillCassidy) August 24, 2022
“Forgiving student loan debt isn’t free. It means the 85 percent of Americans with no undergraduate debt from college will be carrying the burden for those that do. That is not a relief, it is an unfair burden to place on working families,” said Sen. Marco Rubio (R-Fla.) in a press release responding to the president’s announcement.
The Florida Republican went on to say, “There are better ways to help borrowers with surging interest rates and staggering debt. My LOAN Act would increase transparency and eliminate interest rates in the federal student loan industry. Congress should pass it immediately.”
According to information from the Republican’s campaign the Rubio-sponsored LOAN Act, interest on federal student loans would be replaced by a one-time, non-compounding origination fee that would be repaid over the course of the loan. As a fallback, income-based repayment plans would be used.