The White House mocked, this Thursday (25), the criticism of at least six Republican congressmen in relation to the forgiveness of student loan debts, announced by US President Joe Biden, a day earlier. In a post on Twitter, the US government disclosed the debts of these parliamentarians and said they were forgiven.
Representative Vern Buchanan, for example, owes the government $2.3 million for student loans, the White House said. The list also includes Republicans Marjorie Taylor Greene, Markwayne Mullin, Kevin Hern, Mike Kelly and Matt Gaetz.
Just over a month before the midterm elections, the Biden administration will waive US$10,000 on student loan debts incurred by Americans earning less than US$125,000. thousand) per year. A US congressman receives $174,000 annually, so it is uncertain whether, as the White House has revealed, Republicans will benefit from the measure.
The American president had promised to renegotiate debts during his presidential campaign. On Wednesday (24), he also announced the extension of the suspension of payment of loans in force since March 2020.
Biden also said those who took out undergraduate loans would be able to limit payments to 5% of their monthly income, a move that could significantly reduce the bills of millions of debtors. Current income-based government plans generally limit payments to 10% of the borrower’s discretionary income.
The government says that 90% of the relief will go to families earning $75,000 a year or less. The plan must face appeals in court.
According to the White House’s own estimate, the pardon will cost the public coffers US$ 24 billion a year. But, according to The New York Times, the measure could cost taxpayers about $300 billion or more in money actually borrowed that will never be repaid.
The actual cost is difficult to calculate. This is because, even before forgiveness, it was difficult to predict that all debts would be paid. In the U.S., 45 million people owe a total of $1.6 trillion in federal college loans — more than they owe in car loans, credit cards, or any debt owed to them. consumption, except mortgages.
Critics claim the measure will further increase US inflation – now at 8.5%, one of the highest rates in decades. “In the midst of Biden’s crushing inflation, how could the president justify a student loan grant that ignores the worst-off Americans?” asked Republican Representative Kevin Brady last month.
“Ohio workers are paying off Harvard law student loans. If this seems unfair and illegal, it is,” Republican Senate candidate JD Vance wrote on Twitter.
Some Democrats also reinforced the criticism: “I’m happy for the people who are going to get rid of this policy,” said Representative Elissa Slotkin of Michigan. “But this is a single-use dressing that doesn’t get to the root of the problem.” Instead, she said, the government should pursue reforms such as including a cap on student loan interest rates.
