Republicans seek to block Biden’s new plan for student loan relief
SAVE plan was launched by the Biden administration just two weeks ago, and 4 million people have already signed up for it
WASHINGTON – Republican lawmakers in Congress are trying to block President Biden’s new plan for student loan relief.
The plan, called Saving on a Valuable Education (SAVE), would base monthly payments on student loans on borrowers’ income and family size.
This means that borrowers earning $15 per hour or less would not have to make monthly payments.
Other borrowers could save at least $1,000 a year with this plan.
The SAVE plan was launched by the Biden administration just two weeks ago, and 4 million people have already signed up for it.
Led by Senators Bill Cassidy, John Thune, and John Cornyn, 17 Republican senators said that they would use the Congressional Review Act (CRA), a tool members of Congress can invoke to overturn final rules set by federal agencies, to repeal the Saving on a Valuable Education (SAVE) plan.
Republicans opposed to the plan SAVE call it “illegal” and a “mountain of debt laid at the feet of taxpayers.”
They also argue that the plan will encourage people to take out more student loans, knowing they will eventually be forgiven.
Supporters of the SAVE plan say it is a necessary step to help borrowers who are struggling to repay their student loans.
They argue that the plan is fair and will not cost taxpayers anything.
It remains to be seen whether Republicans will be able to repeal the plan, but the issue is sure to figure prominently in the upcoming midterm elections.
Education Secretary Miguel Cardona said Tuesday that Americans are submitting new applications for the SAVE plan each day “so that they, too, can take advantage of the most affordable student loan repayment plan in history.”
Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending, said Wednesday that lawmakers should “oppose the CRAs to repeal SAVE.”
“We condemn this move to block a plan that will provide significant financial relief to low-income borrowers and communities of color,” said Herbin.
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