Republicans criticize student loan forgiveness as a "slap in the face" to taxpayers

Republicans push back on Biden's student loan debt cancelation plan, claiming it's unfair to taxpayers and those who didn't go to college.

The Biden administration has been making aggressive moves to tackle the massive issue of student loan debt in America. Since taking office, nearly $138 billion has been wiped out, with more than 150,000 borrowers informed that their debt totaling $1.2 billion is being forgiven in the first round of debt cancelation under the administration's new SAVE program.

However, this effort has been met with strong pushback from Republicans, who argue that the ongoing effort is putting a massive burden on taxpayers, is unfair to the millions of Americans who didn't go to college, and is an overreach of Biden's authority. GOP lawmakers have criticized the administration's student loan redistribution scheme, claiming that it is using taxpayers' money to cancel debt for borrowers, which they argue is unfair to responsible Americans who have been diligently repaying their loans. They argue that there is no such thing as student loan "forgiveness," and that President Biden is simply transferring the debt to make taxpayers pay back student loans that they never took out.

The Biden administration's SAVE plan is an income-driven repayment plan for borrowers who have been making payments for at least ten years and had originally taken out $12,000 or less for college. For every $1,000 borrowed above that, borrowers can receive forgiveness after an additional year of payments. All borrowers under the SAVE plan receive forgiveness after 20 or 25 years depending on whether they have loans for graduate school. While the Biden administration has touted it as the most affordable income-driven repayment plan in history, critics argue that it has not solved the underlying issue of skyrocketing college expenses.

Despite the opposition, the Biden administration has been working on several approaches to cancel student loan debt, including going through the rulemaking process and making changes to the public service loan forgiveness and income-driven repayment programs. They have also canceled debt for more than a million borrowers found to have been defrauded by their schools and for more than half a million borrowers with permanent disabilities.

For those who have been approved for relief under the SAVE program, borrowers will see it reflected in their accounts as student loan servicers begin to process the debt cancellation in the coming days. The Education Department will continue to identify and cancel student loan debt under the plan on a regular basis, and will also start emailing borrowers who can become eligible for forgiveness if they switch into the SAVE program.

The Biden administration's aggressive effort to address student loan debt has been hailed by Democrats and advocates as a lifeline for borrowers. However, it remains a contentious issue, with Republicans pushing back on the administration's ongoing efforts. As the debate continues, the issue of student loan debt remains a significant challenge that the administration is working to address.

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