In a decisive move, a group of Congressional Republicans, led by Senator Bill Cassidy, has united against what they view as President Joe Biden’s ill-conceived attempt to shift the burden of student loan debt from borrowers onto taxpayers.
The lawmakers, led by Sen. Bill Cassidy (R-LA), are determined to thwart the administration’s latest efforts, which they argue could potentially cost taxpayers over $500 billion.
— Daily Wire News (@DailyWireNews) September 6, 2023
Cassidy, alongside 16 Republican colleagues from both the House and Senate, introduced a Congressional Review Act resolution aimed at overturning what they deem a “reckless” proposal known as the Saving on a Valuable Education (SAVE) plan.
The SAVE plan primarily targets bachelor’s degree student loans and could cost taxpayers as much as $559 billion as it aims to allow borrowers to repay their student loans based on their income and family size rather than the outstanding loan balance. After a decade of payments, those with less than $12,000 in debt would see the remainder forgiven.
A prominent member of the Senate Committee for Health, Education, Labor, and Pensions, Cassidy expressed his concerns, stating, “Once again, Biden’s newest student loan scheme only shifts the burden from those who chose to take out loans to those who decided not to go to college, paid their way, or already responsibly paid off their loans.”
“Our resolution protects the 87% of Americans who don’t have student debt and will be forced to shoulder the burden of the President’s irresponsible and unfair policy,” he added as the lawmakers argue that under the SAVE plan, a staggering 91% of new student debt would become eligible for reduced payments, ultimately transferring 50 cents on every borrowed dollar to taxpayers.
According to the Penn Wharton Budget Model, the IDR rule would channel billions of dollars annually to community college students, effectively converting the federal student loan financing system into what critics describe as a “poorly targeted, taxpayer-funded grant program.”
Reps. Lisa McClain (R-MI) and Virginia Foxx (R-MC), who are also leading efforts to repeal the loan plan, did not mince words when characterizing the Biden administration’s student loan plan. They called it a “scam” and labeled it the costliest regulation in U.S. history.
In a joint statement, they asserted, “The only difference between President Biden and a snake oil salesman is a title. Biden’s administration knows what it’s doing is illegal, but it’s pushing forward anyway, promoting its SAVE scheme as a solution to America’s broken student loan system.”
“In reality, the SAVE scheme is a desperate effort to curry favor and buy votes ahead of the next election,” the statement read further.
Criticism of the president’s student loan relief efforts is not confined to Republicans alone. Congressional members from both sides of the aisle have voiced concerns, arguing that these plans fail to address the underlying issues contributing to the skyrocketing cost of college education and the mounting student debt crisis.
It remains uncertain whether Majority Leader Senator Chuck Schumer will bring the CRA resolution to a vote, given his previous opposition to Republican attempts to halt Biden’s student loan forgiveness program. However, this Republican opposition underscores the deep-seated concerns within the GOP camp regarding the financial implications and fairness of the administration’s student loan policies.