Biden-McCarthy deal’s impact on student loan forgiveness.

Republicans Fail to Stop Biden’s Student Loan Forgiveness Plan

A deal that averts default on the national debt failed to undo President Joe Biden’s student loan forgiveness plan, to the disappointment of some House Republicans.

Despite their efforts, Republicans were unable to put an end to Biden’s plan to forgive up to $20,000 in student debt for many people. While they did succeed in reinstating student loan payments for millions of borrowers who have avoided payments since the pandemic, the pause on repayments will end in August. The Treasury Department has said Congress must lift the debt ceiling the first week of June to avoid default.

Republicans Disappointed by Minimal Spending Cuts

Republicans were more angered by the minimal cuts to future spending in the final version of the deal than by the failure to change course on Biden’s student loan scheme. House Republicans had wanted to reduce the deficit by more than $4.8 trillion over the next decade. The debt ceiling deal will not approach that level of saving and includes modest spending caps that expire after 2024.

Education Secretary Miguel Cardona has said that the administration is targeting the end of August to reinstate student loan payments. The Education Department is likely to push for some time to transition back into facilitating the payments. While the Supreme Court could still put a stop to the forgiveness program, some GOP lawmakers may view it as a loss that McCarthy did not secure a definitive end to it during debt ceiling negotiations.

• Republicans failed to stop Biden’s student loan forgiveness plan
• Student loan payments will resume in August
• Republicans were disappointed by the minimal spending cuts in the final deal

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