Editor’s Note: This story has been updated to correct the total cost to taxpayers.
(KCAU) – Twenty-two Republican governors, including Ron DeSantis of Florida and Greg Abbott of Texas, have sent a letter to President Joe Biden opposing his plan to forgive student loan debt and telling him to withdraw it” immediately”.
The joint letter sent Monday, led by Kim Reynolds of Iowa, said Biden’s plan for a $10,000 debt forgiveness would cost taxpayers a total of $600 billion. The letter claimed it was unfair for the vast majority of taxpayers to pay loan forgiveness when only 16-17% of Americans had federal student loan debt. They added that the plan would shift the debt burden from the rich to the poor.
The joint letter went on to say that it was the students’ decision to take out the loans.
“College may not be the right decision for all Americans, but for students who took out loans, it was their decision: capable adults and willing borrowers who knowingly agreed to the terms of the loan and agreed to go into debt in exchange for taking class,” the letter read. “An expensive degree isn’t the key to unlocking the American Dream – hard work and personal responsibility are.”
The governors added that the plan is unfair to those who have already repaid their loans.
They went on to say that the plan “will further encourage students to borrow, incentivize higher tuition fees and further increase inflation.”
“It doesn’t really solve the problem and it doesn’t address the issue of higher tuition fees or lower interest rates for students.”
Matt Sinovic, executive director of Progress Iowa, said in a statement that “the burden of student debt has forced millions of Americans into dire choices, like staying in a bad job or delaying needed medical care.”
He added that the student debt cancellation plan would allow people to spend more and keep the economy going. Sinovic called out Reynolds for not funding Iowa public schools and cutting funding to public universities in the state.
Biden’s plan includes thousands of dollars in loan forgiveness for people earning less than $125,000 a year, impacting more than 40 million Americans. For those who went to college on Pell Grants, $20,000 will be forgiven. Those who did not receive this grant will see $10,000 in debt forgiveness.
Republican senators, including Chuck Grassley of Iowa, are calling for lawsuits to block Biden’s order canceling student loan debt, calling it an unlawful overreach and an abuse of executive power.
You can read the letter by clicking here.
The joint letter was signed by the governors of Alabama, Alaska, Arizona, Arkansas, Florida, Georgia, Idaho, Iowa, Maryland, from Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Utah. , and Wyoming.
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