Nearly half of US governors demand Biden withdraw student loan forgiveness plan in letter – USA TODAY

Nearly half of the nation’s governors are calling on President Joe Biden to withdraw his student loan forgiveness plan.
The 22 governors, all Republican, argue that Biden’s plan will burden American taxpayers and reward “an elite few.”
Biden has previously stressed that the income-based eligibility of his plan is aimed to help those who need it most, and has pushed back on claims about the relief’s impact on inflation.

Twenty-two Republican governors have signed a letter sent to President Joe Biden calling on him to withdraw his student loan forgiveness plan.

In the letter, dated Monday, the governors wrote that they “fundamentally oppose (Biden’s) plan to force American taxpayers to pay off the student loan debt of an elite few.”

The Republicans, including Texas Gov. Greg Abbott and Florida Gov. Ron DeSantis, also claimed that Biden’s plan would harm low-income families – writing, “hourly workers will pay off the master’s and doctorate degrees of high salaried lawyers, doctors, and professors… Simply put, your plan rewards the rich and punishes the poor.”

Late last month, Biden delivered on a key campaign promise by announcing that he would cancel at least $10,000 in student loan debt for millions of federal borrowers, as well as $20,000 to Pell Grant recipients.

‘Debt and no degree’:Biden cancels as much as $20K in student loan debt: Recap

How do I get my student loans forgiven? Qualifying for Biden’s debt relief, explained.

While the Monday letter argues that the president’s move will reward rich Americans, Biden has stressed that the income-based eligibility of his plan is aimed to help those who need it most, notably middle-class and lower-income families. Borrowers with incomes less than $125,000, or households earning $250,000 or less, are eligible for the $10,000 in forgiveness – and the up to $20,000 in debt relief is for people who have been low-income Pell Grant recipients.

“An education is a ticket to a better life… But over time, that ticket has become too expensive for too many Americans,” Biden said on August 25. “The burden is so heavy that even if you graduate, you may not have access to the middle-class life that the college degree once provided.”

While many applauded the president’s August move, expected to aid up to 43 million borrowers, other activists stressed the need for more relief – with previous pressure from progressive Democrats, unions and liberal groups pushing Biden to cancel at least $50,000 in student loans.

Biden’s announcement also prompted GOP attacks, with many Republicans slamming the president for the relief’s potential impact on the economy and pointing to those who have already paid off their student loans.

Need for more relief: Debt relief will change the lives of some with student loans, but fall short for others.

Gov. DeSantis:Student loan forgiveness alienates ‘people who went and did the right thing’

“At a time when inflation is sky high due to your unprecedented tax-and-spend agenda, your plan will encourage more student borrowing, incentivize higher tuition rates, and drive-up inflation even further, negatively impacting every American,” the 22 Republican governors said in their Monday letter.

In contrast, Biden argued in August that the plan was “economically responsible,” pointing to “real benefits for families without meaningful effect on inflation.”

In their letter, the governors also said that Biden’s loan forgiveness plan is estimated to cost a total of $600 billion and an average of $2,000 per taxpayer.

But these estimates have fluctuated among different experts. After Biden’s August announcement, the White House said the plan would cost roughly $240 billion. The Wharton School of the University of Pennsylvania estimates it will be closer to between $469 billion and $519 billion.

In a handful of states, borrowers getting relief may also face higher taxes.

More:White House pegs student loan plan’s cost at $240 billion. Experts say it will be twice that.

Taxing loan forgiveness? Federal student loan forgiveness could be taxed as income in some states

Here’s a list of the 22 Republican governors who signed the letter calling on Biden to withdraw his student loan forgiveness plan: