President Joe Biden’s promise to tackle the ever-mounting issue of student debt, a cornerstone of his 2020 presidential campaign, has met renewed resistance from the GOP. After his initial attempt to address this financial crisis was quashed by the U.S. Supreme Court, the Biden administration unveiled its “Plan B” – the Saving on a Valuable Education (SAVE) plan.
GOP’s Opposition: A Congressional Challenge to SAVE
In a recent development published by The Motley Fool, in September 07, 2023, on September 5, 2023, a group of influential GOP figures, including Senators Bill Cassidy, John Thune, and John Cornyn, introduced a Congressional Review Act (CRA) resolution. This move seeks to dismantle President Biden’s Saving on a Valuable Education (SAVE) plan, utilizing a legislative tool designed to expedite the reversal of federal agency rules. Complementing this effort, Representatives Lisa McClain and Virginia Foxx introduced a parallel CRA resolution in the House of Representatives on the same day. Their resolution directly disapproves of the Department of Education’s student loan repayment rules, aiming to render them ineffective.
A central criticism voiced by the GOP revolves around the substantial cost of the Saving on a Valuable Education (SAVE) plan, projected at up to $559 billion. Senator Thune labeled the SAVE Plan as a “misguided and fiscally irresponsible student loan bailout,” while Foxx and McClain characterized it as “the most expensive regulation in history.”
Republicans argue that the Saving on a Valuable Education (SAVE) plan shifts the financial burden from college attendees and borrowers to those who either didn’t attend college, financed their education independently, or have already paid off their student loans. Senator Cassidy emphasized that their resolution is meant to protect the 87 percent of Americans without student debt, averting what they perceive as the President’s unfair policy.
Republican Concerns: The Cost and Consequences of SAVE
According to the report published by Share Wise, Republicans contend that the Saving on a Valuable Education (SAVE) plan could create perverse incentives for both students and educational institutions. They argue that it might encourage students to take on more debt, and Representatives Foxx and McClain expressed concerns that it could incentivize colleges to raise tuition fees. The Biden administration, however, views the current student loan system as “broken” and conceived the Saving on a Valuable Education (SAVE) plan to rectify it by enhancing college affordability and preventing borrowers from being burdened by unmanageable debt.
The ultimate destiny of the Saving on a Valuable Education (SAVE) plan remains uncertain, with the outcome hinging on both political maneuvering and potential legal challenges. While the GOP’s CRA resolutions have been introduced, it is too early to predict whether they will pass in their respective legislative chambers. Past events suggest that President Biden is not averse to wielding his veto power, as he did earlier this year when both the House and Senate passed legislation to block his student debt forgiveness plan.
Furthermore, the fate of the Saving on a Valuable Education (SAVE) plan could potentially be determined by federal court rulings rather than solely relying on political decisions made by the President and Congress. With student debt likely to resurface as a prominent issue in upcoming elections, the nation eagerly awaits the resolution of this contentious battle over the future of student loan repayment.