Representative Kevin Brady, R-Texas.
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In response to reports that the Biden administration may soon move to forgive student debt, Republican leaders warned Wednesday of the “perils” of such action.
“It’s a gift to highly educated college graduates,” Rep. Kevin Brady, R-Texas, senior member of the House Ways and Means Committee, said at a news conference. roundtable titled “The Dangers of President Biden’s Student Forgiveness Plan” on Wednesday. “It’s going to make rising costs worse, rather than addressing the costs of universities.”
Representative Tom Rice, RS.C., said the Chairman Joe BidenThe plan to forgive student debt through executive action is also based on “extremely shaky legal grounds”. Some GOP Lawmakers said they would try to block the president’s attempt to cancel the debt without Congress.
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Rice said.
The White House did not immediately respond to a request for comment.
Advocates have said that treating student loan forgiveness as an aid to the well-off is a misnomer of the deep and historical inequality of the American economy.
Rising tuition prices coupled with stagnant household wages, they say, more and more families have to borrow to attend college, an increasingly necessary step for a decent shot at the middle class. Black Americans and women are also bearing the bulk of the pain from debt.
“All these fat cats, and people who never wanted to see help for working people and needy people come up with these myths,” said Senate Majority Leader Chuck Schumer, DN.Y ., said in June, in one of his many efforts for Biden to cancel $50,000 in student debt for all.
“This is not a matter of rich people,” Schumer said. “It affects working-class people.”
More than 40 million Americans are in school debt, owed a cumulative $1.7 trillion, a balance that far exceeds credit card debt or unpaid auto debt.
Before federal student loan payments were halted in March 2020 as part of the government’s response to Covid pandemicabout a quarter of borrowers are in default or in default, leading to comparisons with the 2008 mortgage crisis.
Student loan forgiveness is likely to come. If you’re willing to talk about how the relief will impact you, We’d love to hear from you.
