Student record

Nebraska delegation slams Biden’s student loan forgiveness plan

WASHINGTON DC (KSNB/AP) — President Joe Biden announced detailed plans on Wednesday to provide $10,000 in student debt forgiveness to millions of Americans — and up to $10,000 more for those who are. need most – as well as measures to reduce the burden of repayment for their remaining federal student debt.

Borrowers who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for the $10,000 loan forgiveness, Biden announced. For those also receiving Pell Grants, which are reserved for undergraduate students with the greatest financial need, the federal government would forgive up to an additional $10,000 of federal debt.

Throughout the day, people reacted to the news, with some members of the Nebraska delegation calling it a debt cancellation program.

“The president can turn it around however he wants with Pell’s facade, but ultimately his debt cancellation program forces blue-collar workers to subsidize white-collar graduate students. Instead of holding to account an underperforming higher education sector that is pushing so many young Americans into massive debt, the administration’s unilateral plan is baptizing a broken system. This deeply regressive action – which fails to even acknowledge that most debt is held by educated people – will do nothing to kick-start the reform that higher education desperately needs.

“Yet another economically backward policy from the Biden administration that unfairly pushes the burden of these loans onto all American taxpayers and further fuels the fire of inflation.

It’s not just the multi-billion dollar cost. These loans don’t magically disappear – the debt is transferred from those who borrowed it to current and future taxpayers.

Working-class families who followed the rules and paid off their student loans, along with the vast number of Americans who didn’t go to college, now have to cover the cost of others who racked up that debt. It’s not correct.

We should focus on policies that address the root causes of high tuition fees and provide the American people with greater access to the educational opportunities they deserve.

“President Biden’s plan to cancel student debt places the ultimate cost burden on those who can least afford it. This proposal will cost hundreds of billions of dollars and benefit the top 60%. Not only would this increase the national debt and reduce the value of a college or technical education, but this proposal would leave expensive colleges and universities with little incentive to cut exorbitant tuition fees. In addition, it will further aggravate record inflation. This is a disastrous combination that will benefit the highest earners while leaving low- and middle-income Americans on the hook for a radical and reckless proposal without any accountability. President Biden must abandon this debt transfer program.

“Joe Biden and the Democrats in Washington continue to push policy that will only make inflation worse and education more expensive. Canceling student loans doesn’t just make loans disappear – it’s a scam that shifts the burden onto the shoulders of working Americans across the country. Instead, Congress must work to make education more affordable and fight Joe Biden’s policies that encourage colleges to raise tuition and push working families and students to take on even more debt.

“President Biden’s federal student loan forgiveness plan is a reverse ‘robin-hood’ where the working man and woman pay for the wealthiest in our society. Those who worked two jobs to pay off their school debt or chose the most cost-effective means of acquiring an education were the object of Joe Biden. From the worker who went to trade school and has no debt, to our farmers in Nebraska who are battling high fuel and fertilizer prices, this plan simply shifts the burden of debt to them to pay off, but don’t delete it. It also undermines our military who incentivize membership by offering degrees and tuition assistance.

“We should consider programs that reduce interest rates, incentivize employers to offer tuition assistance programs, or offer a pardon to those who take needed jobs in underserved areas. Our national debt continues to grow and this undermines personal responsibility.

The Associated Press contributed to this report.

Copyright 2022 KSNB. All rights reserved.