Republican senator who led Biden’s $400 billion student loan cancellation calls it a “cheap political ploy now exposed” — and says his new plans to eliminate debt will have to be passed by Congress to go
- “It was a cheap political ploy during Joe Biden’s election season that has now been fully exposed,” Schmitt said of the Biden plan
- Biden is looking for another solution to unilaterally proceed with debt forgiveness: the Higher Education Act
- The Education Department has proposed a review of income-related repayments
First-year Republican Senator Eric Schmitt is gratified that the Supreme Court is siding with the argument made in a case he advanced — even though President Biden has promised to find a solution.
In one of his final acts as Missouri attorney general before entering the state senate early this year, Schmitt filed a lawsuit with six other attorneys general arguing that Biden’s student loan forgiveness would cause “irreparable harm” to law enforcement agencies. student loans.
“It was a cheap political ploy during Joe Biden’s election season that has now been fully exposed,” Schmitt said of the Biden plan.
“From a legal point of view, there is simply no authority at all, in law or otherwise, that gave Joe Biden the ability to write off half a trillion dollars in student loans at the stroke of a pen.”
Freshman Senator Eric Schmitt is gratified that the Supreme Court is taking the side of the argument in a case he has brought — even as President Biden has promised to find a solution
“This is an important case for the court to reaffirm that if this is going to happen, this kind of thing is going to happen and Congress needs to vote for it. Of course, this wouldn’t get through Congress,” he said.
In its final opinion before a summer recess, the Supreme Court struck down Biden’s long-delayed program that would have forgiven up to $20,000 in student debt, estimated to cost about $400 billion.
Democratic Biden challenger Robert F. Kennedy echoed Schmitt’s sentiment, accusing Biden of not trying to work with Congress on debt forgiveness.
Biden knew his plan would not survive a legal challenge. His plan seemed like action, when it came to naught,” Kennedy claimed.
“This is a matter of great importance to our country. As president, I will garner public support to pressure Congress to drop their partisan positions and introduce meaningful aid for the tens of millions of Americans drowning in student debt.”
Instead, Biden is looking for another solution to unilaterally proceed with debt forgiveness: the Higher Education Act.
‘This new road is legally sound. It’s going to take longer, but in my opinion this is the best path that remains to provide debt relief to as many borrowers as possible,” Biden said.
But some legal experts have said Friday’s Supreme Court ruling suggests the court is unlikely to allow student debt forgiveness through other legal avenues.
In one of his last acts as Missouri attorney general before entering the state senate early this year, Schmitt filed a lawsuit with six other attorneys general arguing that Biden’s student loan forgiveness would cause “irreparable harm” to student loan agencies student loans.
Students protest the Supreme Court’s ruling against President Joe Biden’s debt relief program
The court’s conservative justices have pointed to a legal doctrine that says Congress must clearly delegate authority to an agency before it can resolve an important issue through massive or costly new regulation. Using the HEA can take months or more than a year.
And another transformative student loan policy is still in play.
The Department of Education has proposed a revision of means-tested amortization that would cost $250 billion instead of the $430 billion debt forgiveness.
It would lower the limit on monthly payments for those enrolled in means-tested repayment plans from 10 percent to 5 percent. Monthly payments can be as low as $0 for low income earners. After a certain number of years – usually 20, sometimes 25 – the remaining balance would be forgiven.
Although the Department of Education proposed in January to ease means-tested refunds, the rule is not yet final.
Schmitt urged Biden not to find another workaround for student loan relief.
“I think it’s a pretty radical point of view that isn’t popular with people,” he said. The senator instead demanded more “transparency” in college costs.
While some conservatives have argued that the nation should emphasize college alternatives such as trade school, Schmitt insisted that lawmakers should make higher education “accessible” to the working class by holding universities accountable for their rising prices.
“I think we need to think hard about what we’re doing to make the American dream come true for working-class workers,” Schmitt said. That’s my background, isn’t it? I didn’t grow up – no one in my family had gone to college right out of high school. I certainly didn’t know any lawyers when I was growing up.’
“Education was the path for me and so many people who grew up in working-class families to achieve things, so I think we have to keep that achievable,” Schmitt said. ‘I think we should appeal to higher education for this.’