Republicans are trying to stop Biden’s SAVE student loan repayment plan

Republican Senators Bill Cassidy, MD, of Louisiana; John Thune of South Dakota and more than a dozen other GOP colleagues introduced a Congressional Review Act resolution this week to repeal the Biden administration’s new, cheaper student loan repayment plan.

“Once again, Biden’s latest student loan program shifts the burden only from those who chose to take out a loan to those who chose not to go to college, have paid living expenses, or have already responsibly repaid their loans,” said Cassidy in a statement.

President Joe Biden’s plan, known as Saving on a Valuable Education (SAVE Plan), is expected to dramatically reduce the bills of many borrowers, with some seeing their monthly liabilities drop to $0.

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The US Department of Education announced this on Tuesday more than 4 million people have already registered for the program.

Consumer advocates criticized Republicans’ efforts to scale back aid.

“We condemn this move to block a plan that will provide significant financial relief to low-income borrowers and communities of color,” said Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending.

The Education Department has warned that the Covid pandemic has left millions of borrowers worse off financially and that Biden’s student loan forgiveness plan is necessary to prevent a historic surge in defaults and defaults.

After the Supreme Court struck down the debt relief policy in June, Biden introduced a number of other relief measures for borrowers, including the SAVE plan.

The Congressional Review Act allows Congress to block new regulations through a joint resolution of the House and Senate. However, the president can veto the resolution.

As a result, “this attempt to block the SAVE plan will not succeed,” said higher education expert Mark Kantrowitz.