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The unique debt forgiveness program student loans launched by the Administration of Joe Biden faces a new threat from Republicans House of Representativesat a time when a Supreme Court ruling is also expected on whether or not the proposal can enter into force.
The House of Representatives voted Wednesday to approve a resolution blocking the student loan forgiveness program and also ends the pause related to the Covid pandemic that temporarily suspended payments federal student loans.
Two Democrats, Rep. Jared Golden of Maine and Rep. Marie Gluesenkamp Perez of Washington, joined Republicans in voting in favor of the bill.
In a vote of 218 to 203, Virginia Republican Rep. Bob Good got his measure passed to end the pandemic-era student loan repayment lull and cancel that potential relief for 40 million borrowers.
Biden’s proposal, which is also currently at the mercy of the conservative-leaning Supreme Court, is estimated to cost around $400 billion.
The vote also served to block President Biden’s student debt relief plan that would give borrowers up to $20,000 in loan forgiveness.
The Senate has yet to schedule a vote on the resolution, but nearly all of the 49 Republican senators have signed on as sponsorsaccording to CNN.
That Biden student debt relief plan was stopped by lower courts late last year, before any student debt could be canceled. The pandemic payment pause, which has been in place since March 2020, will end at the end of this year.
President Joe Biden has vowed to veto the Republican-led resolution if it passes both the House and the Senate. The administration said the resolution would “undermine America’s middle class.”
“The president’s plan is good. Is popular. And it will help prevent borrowers from defaulting when loan payments resume this summer,” White House press secretary Karine Jean-Pierre said Wednesday.
What are the benefits of Biden’s student loan forgiveness plan
If the student loan forgiveness program is allowed to go forward, individual borrowers who earned less than $125,000 in 2020 or 2021 and married couples or heads of households who earned less than $250,000 a year could see up to $10,000 of their loan forgiven. federal student loan debt.
If a qualified borrower also received a federal Pell Grant while enrolled in college, the individual is eligible for debt forgiveness of up to $20,000.
While debt relief would help student loan borrowers now, the program would not change the cost of college in the futureand some critics argue that it could even lead to an increase in tuition.
Keep reading:
– Supreme Court assesses student loan forgiveness plan in crucial test
– Biden Administration proposes new student loan rules that may lower payments
– Appeals court temporarily halts Biden’s student debt relief program