North Carolina congressman slams President Joe Biden’s latest plan to transfer the burden of student loan repayment from borrowers to taxpayers as a “complete scam.”
According to the U.S. Department of Education, more than $3.6 billion in relief would be provided to 74,160 individuals in North Carolina.
On social media, Republican U.S. Rep. Richard Hudson expressed his skepticism towards Joe Biden’s “student loan forgiveness” plan, calling it a complete scam. According to him, the plan places the burden of bailing out individuals who willingly accumulated significant college debt but have not yet paid it off on hardworking Americans like you.
The Education Department’s release raised doubts about the fundamental nature of borrowing, stating, “Can borrowing truly lead to financial prosperity?”
“These historic measures demonstrate President Biden’s commitment to ensuring that student debt does not burden students more than they were before attending college,” stated U.S. Under Secretary of Education James Kvaal. “The president has instructed us to expedite the implementation of these initiatives, and we are fully dedicated to accomplishing that.”
Student loans offer individuals the opportunity to receive a specific amount of money that will be repaid in the future, along with added interest. When entering into this agreement, both the lender and borrower consider factors such as the borrower’s income, credit score, debt levels, and even collateral like a mortgage. These discussions help ensure a mutually beneficial arrangement between both parties.
According to the announcement, over 25 million individuals have accumulated a debt greater than their initial borrowing amount.
Over 30 million borrowers will be affected by the plan proposed by the Biden administration. In the coming weeks, the public will have the opportunity to provide their comments on these plans.
Round 1 is over, but there is another round coming up on November 5th, when Biden will be up for reelection.
There are several noteworthy student loan forgiveness programs available, including the Public Service Loan Forgiveness, Income-Driven Repayment, Saving On A Valuable Education, and Total and Permanent Disability options.
The U.S. Supreme Court put a stop to Biden’s effort to cancel $400 billion in student debt last year with the HEROES Act.
In July, Biden remained undeterred as he unveiled a $39 billion plan aimed at assisting approximately 800,000 individuals burdened by student loans. U.S. Representative Virginia Foxx, a Republican from North Carolina, quickly voiced her disapproval, stating, “The Biden administration’s actions disregard the rule of law, negatively impacting borrowers, and exploiting taxpayers for the sake of generating attention-grabbing headlines.”
In her chamber, she leads the Workforce and Education Committee.
In February, President Biden, aged 81, made an announcement regarding the cancellation of $1.2 billion in student loan debt for over 150,000 borrowers through the SAVE program. This decision sparked a similar reaction from many individuals, including U.S. Senator Tom Cotton, a Republican from Arkansas. He expressed his views on social media, stating, “There is no such thing as student loan ‘forgiveness.’ President Biden is essentially transferring the debt to make you and your children responsible for repaying student loans that you never borrowed.”
