Republican Plan for Student Loan Cancellation to Affect 268K People: Report
A Republican plan seeking to nullify President Joe Biden's student loan forgiveness program could affect over 268,000 borrowers, according to a new report from the Student Borrower Protection Center (SBPC) and the American Federation of Teachers (AFT).
"The House of Representatives is slated to vote this week on H.J. Res.45, 1 a resolution under the Congressional Review Act that would overturn the pause on federal student loan payments and block President Biden's debt relief plan," the report said.
If enacted, the Republican plan would undo the seventh extension of the pause on federal student loan payments enacted under the Trump administration in response to the COVID-19 pandemic, according to the report.
As a result, the SBPC and AFT estimate, 268,660 "public service workers who accessed debt cancellation from September 2022 through March 2023 through the Public Service Loan Forgiveness (PSLF) program would have $19,502,500,000 in debt put back in place."
The report comes as a vote on the Republican plan was expected Tuesday. The U.S. Office of Management and Budget (OMB) issued a statement on Monday saying that Biden planned to veto the legislation if passed.
"If enacted, H.J. Res. 45 would weaken America's middle class," the statement said.
It went on: "Nearly 90 percent of the relief provided by the Department of Education [under Biden's loan forgiveness plan] would go to Americans earning less than $75,000 per year, and no relief would go to any individual or household in the top 5 percent of incomes. Americans should be able to have a little more breathing room as they recover from the economic strains associated with the COVID-19 pandemic."
Newsweek reached out to the White House via email for further comment.
The SBPC and AFT's report also said that over 2 million public service workers would also be affected by the Republican measure. Those workers have made progress toward cancellation of $178,966,185,572 in federal student loans through the federal PSLF program. Under the GOP plan, they would lose at least some of that progress, the report said.
In addition to the House Republicans' resolution, the Supreme Court is set to hear arguments made in lawsuits filed by some Republican states seeking to block Biden's forgiveness plan. A ruling by the Court on the plan could come early this summer if not sooner, according to CNN.
Biden's plan would cancel up to $10,000 worth of student loans for borrowers making less than $125,000 annually. Borrowers who received Pell Grants would get $20,000 in debt forgiveness.
