House Republicans Vote to Drop Biden’s Student Loans

By Casey Harper (The Center Square)

House Republicans voted 218-203 on Wednesday to change President Joe Biden’s student loan forgiveness despite the US Supreme Court considering its validity.

Rep. Bob Good, R-Va., led efforts to repeal Biden’s debt through the Congressional Review Act, which allows Congress to overturn recently enacted laws. The Government Accountability Office recently stated that the student loan law was in the hands of Congress to change under the CRA.

Related: Department of Education Targets Student Loan Debt of Nearly $311B

“President Biden’s student loan reform plan transfers billions of dollars from borrowers to the American people,” Good told The Center Square. “I’m proud to lead the fight against President Biden’s careless, inconsistent, and unconstitutional actions that will unfairly punish those who have worked hard to pay their debts or who have never had them removed. I’m glad that my fellow Republicans overwhelmingly supported my legislation in the House this week.”

Biden announced last year that his administration would “forgive” $10,000 in student loan debt for those making less than $125,000 a year. For Pell Grant recipients, the loan repayment will be $20,000, and the plan will allow borrowers to repay their loans at 5% of their income.

“Whether you like it or not, and you don’t – because of Biden’s student loans, every man, woman, and child in America will pay $3,527 in taxes to pay off someone else’s loan,” Rep. Aaron Bean, R-Fla., said Wednesday.

The US Congressional Budget Office said the provision would cost taxpayers about $400 billion.

Committee for a Responsible Federal Budget Senior Vice President and Senior Policy Director Marc Goldwein testified before Congress in March, raising concerns about the federal budget deficit, inflation, and rising national debt.

Related: Biden Admin Filed for Student Loan Recovery

“Unfortunately, the policies of the Administration have contributed to the decline in prices and the repeal could further exacerbate the problems of inflation if allowed by the Supreme Court to go forward,” Goldwein testified before the Parliament of Higher Education and Development. “This also puts pressure on the Federal Reserve to raise interest rates, which affects financial, housing, and labor markets and risks causing the economy to collapse.”

Biden has defended his plan, saying it will help Americans who are struggling to repay their debts. Student loans have been frozen several times due to the COVID-19 pandemic, first by former President Donald Trump and then by Biden. The House bill would also end the delay and resume repayment to borrowers.

Critics of Biden’s plan say it penalizes poor Americans who can’t afford to go to college, forcing them to fund wealthier Americans with degrees and access to more.

“President Biden is not forgiving loans, he is removing student loans from borrowers who willingly took out their loans and putting them on those who have chosen not to go to college or are already able to repay their loans,” Biden said. Sen. Bill Cassidy, R-La., said after launching the Joint Rejection Agreement earlier this year along with Good.

Related: Student Loans Are Not a Problem. The Higher Education Cartel Is.

“It is unfair to penalize these Americans, to force them to pay off their student loan debt in a reckless and unfair way,” he added.

It is doubtful whether this measure can be adopted in the Senate, especially before the Supreme Court gives their decision, it is not possible. A favorable court ruling, however, could push the issue even further to Senate Republicans.

Biden has made it clear that he opposes the House’s move to overturn his Education Department bill, meaning it cannot be passed.

The Supreme Court is expected to rule on the debt relief in the coming weeks.

Included is permission from Center Square.