November 16, 2023
Senate Republicans have fallen short in their bid to pass a resolution overturning President Joe Biden’s SAVE student loan plan.
Senate Republicans fell short in their bid to pass a resolution to overturn President Joe Biden’s income-driven plan for addressing student loans, Saving on Valuable Education (SAVE).
The Hill reported all Republicans and Democratic Senator Joe Manchin (W.V.) voted in support of a Congressional Review Act (CRA) resolution that would have discontinued the SAVE plan that went into effect this fall.
However, the 49 votes weren’t enough, as all Democrats except Manchin voted to fight off the latest challenge to the repayment plan, a 50-49 vote.
Senate Republicans saw the loss coming and did not take it well.
“This is irresponsible. This is deeply unfair,” Sen. Bill Cassidy (R-La.), ranking member of the Senate Health, Education, Labor and Pensions (HELP) Committee, said before the vote, according to The Hill.
The SAVE Plan is a two-part plan. This fall, borrowers will see a rise in their income exemption for student loan payments from 150% to 225% above the federal poverty guidelines. Borrowers will also not see their unpaid interest grow. Next year, monthly payments from discretionary income will be cut from 10% to 5%, according to the outlet.
In their bid to derail the SAVE plan, Republicans noted the plan will cost taxpayers more than $550 billion, adding that individuals who never attended college and those who have paid off their loans would be picking up the tab for others.
According to Business Insider, student loan debt is Americans’ fourth-highest debt after mortgages, auto loans, and credit card debt, totaling $1.57 trillion. Millions of Americans with student loan debt were given a break during the COVID-19 pandemic as loan payments were paused and interest rates were set to 0% between March 13, 2020, and Sept. 1, 2023. Additionally, Biden has canceled the student loan debt of nearly 3.6 million Americans, totaling more than $127 billion.
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