North Carolina congressman slams President Joe Biden’s latest plan to shift the burden of student loan repayment from borrowers to taxpayers as a “complete scam”.
The U.S. Department of Education has announced that over $3.6 billion in relief will be provided to 74,160 individuals in North Carolina.
On social media, Republican U.S. Rep. Richard Hudson expressed his criticism of Joe Biden’s “student loan forgiveness” plan. He referred to it as a complete scam that places the burden on hardworking Americans like yourself to bail out individuals who willingly accumulated significant college debt and have failed to pay it off.
The Education Department’s release contained a quote that directly challenges the fundamental concept of borrowing.
U.S. Under Secretary of Education James Kvaal expressed President Biden’s commitment to preventing student debt from burdening students more than their college education. “The president has instructed us to expedite the implementation of these initiatives, and we will ensure that we do so,” Kvaal stated.
Student loans serve as a way for individuals to receive a certain amount of money that will be repaid in the future. The lender may also charge interest on the loan. When both parties come to an agreement, factors such as the borrower’s income, credit score, debt levels, and even collateral like a mortgage are typically taken into consideration when determining the loan amount.
According to the release, over 25 million individuals have accumulated more debt than what they initially borrowed.
More than 30 million borrowers will be affected by the plan put forward by the Biden administration. According to the release, the public will have the chance to provide feedback on these plans in the upcoming weeks.
Round 1 is over, but there’s another one on the horizon. The next round will take place on November 5, when Biden is up for reelection.
There are several important student loan forgiveness programs available to borrowers. These programs include Public Service Loan Forgiveness, Income-Driven Repayment, Saving On A Valuable Education, and Total and Permanent Disability.
In the past year, the U.S. Supreme Court put a stop to Biden’s endeavor to eliminate $400 billion in student debt through the HEROES Act.
In July, Biden announced a total of $39 billion designated for approximately 800,000 borrowers with student loans. Despite criticism from U.S. Rep. Virginia Foxx, R-N.C., who accused the Biden administration of disregarding the rule of law and prioritizing media attention over the well-being of borrowers and taxpayers, Biden remained undeterred.
The Workforce and Education Committee in her chamber is chaired by her.
In February, President Biden made an announcement to cancel $1.2 billion in student loan debt for over 150,000 borrowers through the SAVE program. This decision received a mixed response, with some expressing their support on social media. However, U.S. Senator Tom Cotton, a Republican from Arkansas, criticized the move, stating that there is no such thing as student loan “forgiveness” and that the President is merely shifting the burden of debt onto taxpayers and future generations.