Senate Halts Biden's Student Loan Relief Plan

Facts

• In a 52-46 vote held Thursday, the US Senate passed legislation that will repeal Pres. Joe Biden's student loan forgiveness program.¹
• The White House had previously said it would veto the bill, and it seems neither chamber will be able to reach the two-thirds majority needed to override that veto.²
• While Sen. Joe Manchin (W. Va) has said the nation "simply cannot afford" the program, which would forgive 40M students' nearly $400B of debt, Sen. Bob Cassidy (R-La.) called it an unfair policy that "favors the few," noting that 87% of Americans have no student loans.³
• SCOTUS is set to rule on the legality of Biden's program by the end of June, as it faces legal challenges from lenders and conservative advocacy groups.⁴
• This comes as the Senate on Thursday voted to pass Biden and House Speaker Kevin McCarthy's deal to raise the US debt ceiling, which will allow the Education Department to resume student loan repayments on August 30.⁵
• Biden has repeatedly extended the 2020 loan repayment pause and cleared $66B in student debt for 2.2M borrowers who qualified for targeted programs. No debt has yet been cleared as part of the $400B plan, as the White House awaits the SCOTUS ruling.⁶

Sources: ¹NBC, ²USA Today, ³The Hill, ⁴Washington Post, ⁵POLITICO, and ⁶CNN.

Narratives

• Republican narrative, as provided by Forbes. Biden is insisting on pushing forward a radical debt forgiveness plan that even his own party is beginning to sour on. Student loan forgiveness is a regressive, wildly expensive policy that benefits wealthier Americans, and there is doubt as to whether the president can cancel such debt unilaterally. We can only hope the SCOTUS ruling will put an end to this madness.
• Democratic narrative, as provided by Los Angeles Times. Student loans have shackled a whole generation of Americans, and Biden's forgiveness plan has been a lifeline for millions. Debt forgiveness would help avert financial ruin for countless people, yet Republicans and their legal lackeys seek to rip relief away from those who need it most. Biden should be applauded for continuing to fight for everyday Americans.

Predictions