Senate Rejects Biden's $400 Billion Plan to Cancel Student Loan Debt

  • by:
  • Source: Wayne Dupree
  • 06/02/2023
In a major setback for President Joe Biden, the Senate rejected his proposal to relieve Americans of $400 billion in student loan debt by a margin of 52-46. This outcome is likely to have significant consequences for millions of Americans who are struggling to pay off their student loans. Despite this setback, the Biden administration remains committed to providing relief to those burdened by debt.

Sens. Kyrsten Sinema (I-Ariz.), Joe Manchin (D-W.Va.), Jon Tester (D-Mont. ), and all 49 Republicans opposed the loan bailout on Thursday, defeating Biden's proposal to forgive up to $20,000 in college debt for federal students earning less than $125,000 annually. 

Despite Republican criticism of the bill, the House passed it last week by a vote of 218-203. 

Just prior to the Senate vote, Sen. John Thune (R-SD) remarked, "It's kind of a slap in the face to Americans who chose more affordable college options, worked their way through school to avoid taking out student loans, or whose parents scrimped and saved to put them through college." 

He said that it was unjust for hard-working Americans to have to pay off loans twice or cover the cost of a degree they never even received. 

Sen. Patty Murray (D-Wash.) on the other hand criticized Republicans for voting to scale back Vice President Biden's $1 billion plan, saying they will do everything to keep Americans from living without crippling debt. 

Republicans now want to put a stop to that hope, Murray claimed. "I've heard from so many people across my state who were so grateful and relieved to have a glimmer of hope finally, to see the light at the end of the tunnel," "Millions of Americans frequently find themselves unfairly burdened with enormous debt for no fault of their own," 

The law was created under the Congressional Review Act, which enables Congress to reject executive branch policy if both the House and Senate vote a resolution disapproving of it. It was passed by both chambers of Congress. 

Biden is anticipated to reject the resolution now that it has been approved by both chambers. Congress' ability to obtain the two-thirds majority required to overturn Biden's impending veto, meanwhile, seems doubtful. 

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