President Joe Biden (Photo by Joseph Prizioso / AFP via Jetty Image)
Republicans are calling President Joe Biden’s student loan relief “disgraceful” and “insulting.”
Here’s what you need to know – And what it means for your student loan.
Student loan
While progressive Democrats and student borrowers are celebrating Biden’s decision to extend the student loan break for an unprecedented fourth time, Not everyone is excited. Yesterday, Biden extended student loan relief until August 31, 2022, which would benefit 41 million student borrowers. However, several Republicans in Congress have called the student loan relief “disgraceful” and “insulting” to hard-working Americans. (Student loan cancellation and student loan repayment breaks are confusing. Here’s what to know).
Student loan breaks: Student loan relief is an “insult”
Sen. Tom Cotton (R-AR) tweeted Tuesday, “President Biden’s permanent suspension of student loan repayments is an insult to every American who has responsibly repaid loans.”
Sen on student loan repayment break. Tom Cotton
For Cotton, repaying student loans means personal responsibility – and borrowers should pay off their debts. Cotton said the extension of the student loan payment break is a “terrible idea”. If student borrowers do not meet their financial obligations, Cotton argues, the government will stick to paying off student loan loans for individual borrowers – which is unfair. (Student loan break: Senator says extending student loan relief is unfair to most Americans).
Student Loan Payment Pause Extension “Offensive”
Republican Virginia Fox (RNC), a top Republican in the House Committee on Education and Labor, says hard-working Americans are “raising ছাত্র 5 billion per student loan bill for graduate students and Ivy League lawyers.” This is not the first time that Fox Biden’s student loan relief has been extended. Foxx said the third expansion of Biden’s student loan relief was problematic and that it would eventually cost the federal government more than 200 200 billion to cancel that large-scale student loan (new proposal would extend student loan payment breaks and cancel student loans).
Why Republicans strongly oppose the cancellation of student loans
Some Democrats in the Student Loan Payment Pause believe that large-scale student loans will be canceled later. That said, Republicans in Congress have strongly opposed the cancellation of student loans for a number of reasons. Here are some reasons why:
- Significant Costs for the Federal Government: For example, it could cost borrowers at least $ 1 trillion to cancel a student loan of up to $ 50,000.
- Most Americans do not have student loans: An estimated 45 million, or 20%, of adult Americans have student loans. That means 80% of Americans do not have student loans or did not go to college.
- Advantages of high income earners: Canceling large-scale student loans will benefit disproportionately high-income earners disproportionately. Why? About 50% of student loan debt from graduate school.
- Personal Responsibilities: Student borrowers will have to repay the loan obligations that they promised to repay.
- Moral Disadvantages: If student loans are canceled now, future student borrowers may borrow more and hope the government will cancel their student loans as well.
(Biden may cancel student loan upon completion of student loan relief).
Student Loans: The Next Step
Despite Republican opposition, student borrowers will receive more student loan relief by August 31, 2022. Until Republicans regain the presidency, or win a majority seat in Congress, it will be challenging to adopt an alternative policy of student loan repayment breaks, or cancel potentially large-scale student loans.
When you navigate your options for student loan repayments, be sure to consider your financial goals and how to repay student loans quickly:
