Rep Barry Loudermilk of Georgia’s 11th Congressional District issued a statement attacking the plan for student debt relief for low to moderate income individuals released by President Joe Biden today.
“President Biden’s student loan debt forgiveness scheme is an insult to the millions of hardworking Americans who have worked so hard to pay off their student loans and other debts. Not only does this decision raise legal concerns, it will also not help inflation and will cost American taxpayers an estimated $300 billion,” Loudermilk said. “This is yet another example of just how out of touch President Biden is with a majority of Americans who just want us to rein in out-of-control inflation, need affordable goods, gas, groceries, less crime, and secure borders.”
Biden announced a plan that has three components:
- The plan will extend the pause in student loan payments put in place because of the pandemic for what the announcement calls a final time through December 31, 2022, with payments resuming in January 2023. According to the announcement, the pause will take place automatically, so individuals with loan will not have to take any action.
- The announcement states: “To smooth the transition back to repayment and help borrowers at highest risk of delinquencies or default once payments resume, the U.S. Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households.”
- The administration proposes a new income-based repayment schedule on future loans “that will substantially reduce future monthly payments for lower- and middle-income borrowers.”
You can read more details about the plan by following this link to the administration’s student debt relief page.