Kevin McCarthy hits Biden admin for launching NEW student loan plan cutting costs for 20MILLION borrowers following Supreme Court defeat: ‘They are not a king’
Kevin McCarthy sues Biden administrator for launching NEW student loan plan, cutting costs for 20 million borrowers after Supreme Court defeat: ‘They’re not king’
- “How many times does the Supreme Court have to tell someone that their act is unconstitutional? They are not king’
- “If we have to take action, we have to go to the Supreme Court again, if we have to pass bills, we will show him what powers he has, and which he does not.”
Speaker of the House of Representatives Kevin McCarthy vowed he would fight back against President Biden’s student loan plan, which would cut monthly payments for about $20 million borrowers.
“How many times does the Supreme Court have to tell someone that their act is unconstitutional? They are not king. They don’t have the authority,” Fox Business’s Kudlow said on Tuesday.
He noted that the debt ceiling deal required student loan payments to resume — and threatened both to pass more bills and take legal action to thwart Biden’s latest move.
“If we have to take action, we have to go to the Supreme Court again. If we have to pass bills, we will show him which authority he has and which he does not,” said the speaker.
Speaker of the House of Representatives Kevin McCarthy pledged he would fight back against President Biden’s student loan plan, which would cut monthly payments for about $20 million borrowers
The White House’s new income-driven repayment program, the Saving on a Valuable Education (SAVE) plan, will reduce student loan payments from 10 percent of free income to 5 percent.
It also limits interest accrual on loans – the department will “stop charging monthly interest not covered by the borrower’s payment” under the new plan.
Early loan forgiveness is also included in the plan.
Borrowers with $12,000 or less will see the remainder of their balance forgiven after 10 years of consistent monthly payments.
“For every additional $1,000 borrowed above that level, the plan adds an additional (one year of payments) for up to 20 or 25 years,” the ministry said.
“How many times does the Supreme Court have to tell someone that their act is unconstitutional? They are not king. They don’t have the authority,” Fox Business’s Kudlow said on Tuesday
Borrowers can visit a page on the Federal Student Aid website and find the application process. Borrowers who have loans through the Department of Education — those with direct subsidized and unsubsidized loans, as well as Direct PLUS loans for graduate and professional students, and direct consolidation loans — are all eligible for the plan.
The Department of Education estimated that more than 1 million low-income borrowers could lose their monthly payments because they earn less than 225% of the federal government’s poverty guidelines.
The new plan came to an end after the Supreme Court rejected Biden’s $400 billion plan, which would have forgiven up to $20,000 in debt from some 43 million borrowers in June.
The majority had said the court could not forgive the debts without a decision from Congress.