- Nearly half of the nation’s governors have called on President Joe Biden to withdraw his student loan forgiveness program.
- The 22 governors, all Republicans, argue that Biden’s plan would burden American taxpayers and reward “an elite few.”
- Biden has previously insisted that his plan’s income-based eligibility is aimed at helping those most in need, and has pushed back on claims about the relief’s impact on inflation.
Twenty-two Republican governors have signed a letter to President Joe Biden.
In a letter dated Monday, the governors wrote that they “fundamentally oppose (Biden’s) proposal to force American taxpayers to pay off the student loan debt of an elite few.”
Republicans, including Texas Gov. Greg Abbott and Florida Gov. Ron DeSantis, said Biden’s plan would harm low-income families — writing, “Hourly workers will pay for the master’s and doctorate degrees of high-paid lawyers, doctors and professors. … Simply put, your The scheme rewards the rich and punishes the poor.”
Late last month, Biden made a key campaign promise by announcing that he would cancel at least $10,000 in student loan debt for millions of federal borrowers and $20,000 for Pell Grant recipients.
‘No credit and no degree’:Biden cancels up to $20K in student loan debt: reboot
How do I get my student loans forgiven? Biden’s eligibility for debt relief, explained.
While Monday’s letter argued that the president’s move would reward wealthier Americans, Biden emphasized that his plan’s income-based eligibility is aimed at helping people who need it most, particularly middle-class and low-income families. Borrowers with incomes of less than $125,000 or households with incomes of $250,000 or less are eligible for $10,000 in forgiveness — and up to $20,000 in loan relief for low-income Pell Grant recipients.
“Education is the ticket to a better life…but over time, that ticket has become too expensive for many Americans,” Biden said said on August 25. “The burden is so heavy that even if you graduate, you won’t have access to the middle-class life that a college degree provides.”
While many applauded the president’s August move, other activists stressed the need for more relief — previous pressure from progressive Democrats, unions and liberal groups pushed Biden to cancel at least $50,000 in student loans.
Biden’s announcement sparked GOP attacks, with many Republicans lambasting the president for the relief’s potential impact on the economy and those who have already paid off their student loans.
Further relief required: Debt relief can change the lives of some with student loans, but less so for others.
Governor DeSantis:Student loan forgiveness alienates ‘those who went and did the right thing’
“At a time when inflation is high because of your unprecedented tax and spending agenda, your plan will encourage more student loan debt, higher tuition fees, and further increase inflation, which will negatively affect every American,” the 22 Republicans said. The governors said in a letter on Monday.
By contrast, in August Biden argued that the plan was “fiscally responsible,” pointing to “real benefits for families that have no meaningful effect on inflation.”
In their letter, the governors said Biden’s debt forgiveness plan would cost a total of $600 billion, an average of $2,000 per taxpayer.
But these estimates fluctuate between different experts. After Biden’s August announcement, the White House said the project would cost about $240 billion. The Wharton School of the University of Pennsylvania Assessments It will be between $469 billion and $519 billion.
In a few states, borrowers receiving relief may also face higher taxes.
Further:The cost of the White House student loan program is $240 billion. Experts say it will double.
Tax debt forgiveness? Federal student loan forgiveness may be taxable as income in some states
Here’s a list of the 22 Republican governors who signed a letter calling for a rollback of Biden’s student loan forgiveness program:
- Alabama Governor Kay Ivey
- Alaska Governor Mike Dunleavy
- Arizona Governor Doug Ducey
- Arkansas Governor Asa Hutchinson
- Florida Governor Ron DeSantis
- Georgia Governor Brian Kemp
- Idaho Governor Brad Little
- Iowa Governor Kim Reynolds
- Maryland Governor Larry Hogan
- Missouri Governor Mike Parsons
- Montana Governor Greg Gianfort
- Nebraska Governor Pete Ricketts
- New Hampshire Governor Chris Sununu
- North Dakota Governor Doug Burgum
- Ohio Governor Mike DeWine
- Oklahoma Governor Kevin Stitt
- South Carolina Governor Henry McMaster
- South Dakota Governor Christie Nome
- Tennessee Governor Bill Lee
- Texas Governor Greg Abbott
- Utah Governor Spencer Cox
- Wyoming Governor Mark Gordon
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Contributing: Chris Quintana, Maureen Kropp, Ella Lee, USA TODAY.
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