A day before the Georgia Senate runoff election, President Biden reemphasized his promise to reduce the “enormous debt” of students who graduated with student loans and insisted he will overcome legal challenges in grade.
“We are confident that we are correct in law and we believe that the court will probably come out in the right position.”
Biden’s plan would cancel up to $20,000 in federal student debt for Pell Grant recipients and up to $10,000 for other student borrowers earning up to $125,000.
The average student loan balance is currently over $30,000.
The nonpartisan Congressional Budget Office estimated in September that debt forgiveness would eliminate about $430 billion of the outstanding $1.6 trillion in outstanding student debt and that about 40 million people would benefit.
“What (forgiveness) allows people to do is have a fresh start in life and it also helps the economy,” the Democratic president said of the advantages of federal loan forgiveness.
President Joe Biden wears an umbrella to protect himself from the rain as he leaves the White House Tuesday in Washington, DC The issue of executive order cancellation of student loan debt will be heard by the Supreme Court in early 2023.
The Supreme Court, whose justices are pictured, agreed to hear the Biden administration’s plan to forgive student loan forgiveness through an executive order in February 2023.
Biden’s bid to secure federal student loan forgiveness comes after young voters and college grads helped the Democratic Party, including New York Sen. Chuck Schumer, become majority leader in a coup. to the Republican Party.
Voters under the age of 30 chose Democrats in the midterms by a margin of 63 to 35, their largest demographic and their biggest win. NBC News exit polls informed.
About half of voters approved Biden’s student loan forgiveness plan, about the same as those who disapproved.
In October, the US Court of Appeals for the Eighth Circuit granted a temporary stay in response to a challenge to the order by a coalition of six Republican-led states.
Texas District Court Judge Mark Pittman, a Fort Worth-based former President Trump appointee, also blocked the plan, saying the program usurped the power of Congress to make laws.
Several Republican politicians, including Georgia Rep. Marjorie Taylor Greene and Florida Rep. Vern Buchanan, have actively disapproved of the fact that Biden’s student debt plan received Paycheck Protection Program (PPP) funding and forgiveness.
Speaking on the US conservative news network, Newsmax TV in August, MTG criticized Biden’s student aid plan as “completely unfair.”
Republicans on the House Labor and Education Committee were equally dismissive.
‘This policy costs taxpayers BILLIONS every month it continues. It is long overdue to pay again,’ they wrote on Twitter.
“I find it interesting that the same people who are really after us, the Republicans, and who are bringing these suits, the governors and others, but particularly members of the House, qualify for these PPP loans,” Biden said.
Earlier this year, the official; The White House Twitter account set out to systematically identify Republicans who had forgiven PPP loans, including MTG and Buchanan.
Student loan debt holders demonstrate outside the White House staff entrance in Washington, DC to demand that Biden cancel federal student loan debt
Earlier this year, the White House tweeted that Georgia Rep. Marjorie Taylor Greene had $183,504 in PPP loans forgiven.
The White House tweeted that Republican Rep. Vern Buchanan has been forgiven more than $2.3 million in PPP loans.
‘(Marjorie Taylor) Greene and her family … complain about debt forgiveness for working, poor and middle-class people who had to borrow money to go to college in the first place, Biden said.
The main difference between the student loan plan and the PPP program is that the debt relief authorization is by executive order. Meanwhile, the pandemic relief funds have been approved by both houses of Congress and signed into law.
In a 26-page opinion, Pittman called Biden’s plan an “unconstitutional exercise of Congress’s legislative power” and noted that the program did not go through standard regulatory processes.