{"id":1965257,"date":"2023-07-06T03:10:01","date_gmt":"2023-07-06T07:10:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-save-student-loan-relief-measure-another-way-of-canceling-debt-critics-say\/"},"modified":"2023-07-06T03:11:32","modified_gmt":"2023-07-06T07:11:32","slug":"bidens-save-student-loan-relief-measure-another-way-of-canceling-debt-critics-say","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-save-student-loan-relief-measure-another-way-of-canceling-debt-critics-say\/","title":{"rendered":"Critics argue that Biden&#8217;s SAVE Student Loan Relief Measure is just another form of debt cancellation."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbidens-save-student-loan-relief-measure-another-way-of-canceling-debt-critics-say%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1965257&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"post_content\">\n<blockquote>\n<h2>President Biden Pursues New Avenues for Student Loan Relief<\/h2>\n<p>Following the Supreme Court\u2019s recent ruling to block the current administration\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dems-beg-biden-to-act-swiftly-and-extend-student-loan-payment-pause\/\" title=\"Dems Beg Biden To \u2018Act Swiftly\u2019 And Extend Student Loan Payment Pause\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrats-push-for-student-debt-forgiveness-would-cost-taxpayers-millions\/\" title=\"Democrats push for student debt forgiveness, would cost taxpayers millions\">student loan forgiveness<\/a> proposal<\/a>, President Joe Biden announced that his administration would pursue different avenues to offer relief to millions of borrowers.<\/p>\n<p>\u201cI\u2019m not going to stop fighting to deliver borrowers what they need, particularly those at the bottom end of the economic scale,\u201d Mr. Biden said in a White House <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/speeches-remarks\/2023\/06\/30\/remarks-by-president-biden-on-the-supreme-courts-decision-on-the-administrations-student-debt-relief-program\/\">address<\/a> on June 30. \u201cSo, we need to find a new way. And we\u2019re moving as fast as we can.\u201d<\/p>\n<p>According to the White House, the Department of Education <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2023\/06\/30\/fact-sheet-president-biden-announces-new-actions-to-provide-debt-relief-and-support-for-student-loan-borrowers\/#:~:text=This%20income%2Ddriven%20repayment%20plan,balances%20grow%20from%20unpaid%20interest.\">initiated<\/a> a regulatory rulemaking process to pave a path for debt relief and finalized \u201cthe most affordable repayment plan ever created\u201d using the authority found under the Higher Education Act.<\/p>\n<p>As part of this law, Congress put together various federal programs to support borrowers who struggle to keep up with their student loans. As a result, officials have finalized the Saving on a Valuable Education (SAVE) plan, an income-driven repayment (IDR) scheme limiting borrowers\u2019 monthly payments to a percentage of their income.<\/p>\n<p>Under the president\u2019s SAVE scheme, borrowers with undergraduate loans would only make payments equal to 5 percent of their discretionary income instead of 10 percent, which the administration estimates would save borrowers approximately $1,000 per year. Moreover, student loan forgiveness would be provided to borrowers with balances of $12,000 or less after ten years of payments rather than the original 20 years.<\/p>\n<p>It is not expected to be available until July 2024 because the White House intends to institute the program in phases, with sign-ups that could start as early as this summer.<\/p>\n<figure id=\"attachment_5108356\" style=\"width: 600px\" class=\"wp-caption alignnone\">\n<a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2023\/03\/08\/GettyImages-1242692841-1200x811.jpg\"><figcaption class=\"wp-caption-text\"><noscript><\/noscript><\/figcaption><\/a><br \/>\n<\/figure>\n<p>This is just another form of debt cancellation, said Caleb Kruckenberg, an attorney at Pacific Legal Foundation.<\/p>\n<p>\u201cWhat they\u2019re saying is, we\u2019re not transferring any debt, we\u2019re just changing the terms of repayment on the amount you have to repay everything,\u201d Mr. Kruckenberg told The Epoch Times.<\/p>\n<p>\u201cBut at the same time, if you look at the policy, it\u2019s saying, well, from a large number of borrowers, your monthly payment is going to be $0. And after a certain number of payments, we\u2019ll forgive your loans. I mean, that\u2019s a more complicated way of saying we\u2019re canceling debt.\u201d<\/p>\n<p>The Education Department estimates the cost would be $138 billion over a decade. However, the <a href=\"https:\/\/budgetmodel.wharton.upenn.edu\/issues\/2023\/1\/30\/budgetary-cost-of-proposed-income-driven-repayment\">Penn Wharton Budget Model<\/a> suggests that the price tag could be between $333 billion and $361 billion over the decade-long window. It might even be higher because \u201cthese estimates do not yet include the effects of students increasing their borrowing, which is subject to future research.\u201d<\/p>\n<p>Other estimates have varied. The <a href=\"https:\/\/www.cbo.gov\/publication\/59113\">Congressional Budget Office (CBO)<\/a> was slightly more conservative in its forecasts, projecting that the total cost would be about $230 billion. But the <a href=\"https:\/\/s3.documentcloud.org\/documents\/23862543\/biden-idr-rule-paper-6-27-23.pdf\">Foundation for Government Accountability (FGA)<\/a> placed the final tally at $471 billion.<\/p>\n<blockquote>\n<h3>Tuition Inflation Fears<\/h3>\n<p>But while the Biden administration is marketing these relief efforts as a way to help working and middle-class borrowers, critics assert that these programs will have \u201cnegative effects for everybody.\u201d<\/p>\n<p>Some experts believe this is another campaign that would result in as much as $1 trillion in additional federal expenditures over the next decade.<\/p>\n<p>\u201cWe have a student loan system that assumes that people are going to pay their debt back, and instead, it\u2019s just this massive government spending policy that has negative effects for everybody,\u201d Mr. Kruckenberg said, adding that it is a concept aimed at well-educated potential Democratic voters.<\/p>\n<p>First, taxpayers will be on the hook for this \u201cgigantic government handout\u201d at a time of high inflation. Second, it exacerbates tuition inflation, Mr. Kruckenberg noted, because it sends the wrong message that colleges can continue to raise the cost of higher education and take advantage of these federal programs.<\/p>\n<p>\u201cBecause every college knows that if there\u2019s more funding, more free money, the best way to take advantage of that is to raise tuition for everybody,\u201d he said.<\/p>\n<\/blockquote>\n<figure id=\"attachment_5049708\" style=\"width: 640px\" class=\"wp-caption alignnone\">\n<a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2023\/02\/10\/University-of-California-Los-Angeles-1200x756.jpg\"><figcaption class=\"wp-caption-text\"><noscript><\/noscript><\/figcaption><\/a><br \/>\n<\/figure>\n<h3>Guaranteeing Student Loans<\/h3>\n<p>The U.S. <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-save-student-loan-relief-measure-another-way-of-canceling-debt-critics-say\/\" title=\"Critics argue that Biden's SAVE Student Loan Relief Measure is just another form of debt cancellation.\">government started guaranteeing student loans offered<\/a> by banks and non-profit lenders to increase access to higher education. However, critics argue that these programs have contributed to rising tuition costs and a student debt crisis.<\/p>\n<\/blockquote>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>President Joe Biden remains determined to provide relief to millions of borrowers, despite the Supreme Court&#8217;s rejection of the current administration&#8217;s student loan forgiveness plan. He vows to explore alternative approaches to address the needs of those at the lower end of the economic spectrum, emphasizing his unwavering commitment to their cause.<\/p>\n","protected":false},"author":278,"featured_media":1965258,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-1965257","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1965257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/278"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1965257"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1965257\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1965258"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1965257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1965257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1965257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}