Senate Republicans announced the Lowering Education Costs and Debt Act as their solution to address the student loan crisis, which comes days before the Supreme Court makes a decision on President Biden’s Debt forgiveness plan.
The debt forgiveness package aims to provide relief to more than 45 million Americans facing skyrocketing higher education costs.
In August 2022, Biden announced a plan to cancel at least $10,000 in student debt as well as $20,000 for Pell Grant recipients. That plan was met with several legal challenges, two of which landed before the Supreme Court, prompting Republicans to come up with a plan of their own.
Jan Abel is an attorney who’s been practicing for 20 years and believes that student loan relief is necessary.
“I think some help is needed for people that give their entire career to public service,” Abel said.
Abel is one of the many still waiting to find out what the future holds when it comes to more than $1.6 trillion dollars in outstanding student debt.
“I’m still waiting on an email to see if they are going to forgive it or not,” Shadow Waddell said.
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The GOP’s plan includes five pieces of legislation including reforming the college data reporting system to make more information about graduation rates and debt after graduation more accessible.
The plan also will include a requirement to educate students about loan plans including expected monthly payments after graduation.
One of the bills would cut student loan repayment options down from nine different plans to two.
The GOP’s plan would also end Graduate Plus Loans, which have no borrowing limit.
If the Supreme Court strikes down President Bidens debt relief forgiveness program, Republican lawmakers are expected to push their five bills through Congress.
Without a Supreme Court ruling before June 30, interest begins on Sept. 1. The first payments on student loans in more than three years will be due in October, according to an Education Department spokesperson.
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