In a letter to President Joe Biden, 22 Republican governors ask him to rescind his student loan forgiveness proposal.
The governors stated that they "fundamentally oppose (Biden's) idea to make American taxpayers pay off the student loan debt of an elite few" in the letter, which was dated Monday.
Republicans, such as Florida Gov. Ron DeSantis and Texas Gov. Greg Abbott, asserted that Biden's proposal would damage low-income families, saying, "The master's and doctoral degrees of highly compensated lawyers, doctors, and professors will be paid for by hourly workers. Simply simply, your approach favors the wealthy and penalizes the underprivileged."
The White House responded by citing Republican backing for President Donald Trump's massive tax cuts for the wealthiest as well as GOP legislators who benefited from the forgiveness of their federal Paycheck Protection Program loans during the COVID-19 health crisis.
In an email to USA TODAY on Wednesday afternoon, White House spokesman Abdullah Hasan stated that "these same Republican governors didn't seem to object when their Republican colleagues in Congress passed a $2 trillion tax giveaway for the rich or had hundreds of thousands of dollars of their own small business loans forgiven."
“President Biden is dedicated to providing assistance to the borrowers who require it the most”, Hasan continued, "while Republican elected leaders strive to keep working middle-class Americans in mountains of debt.”
By declaring that he will forgive at least $10,000 in student loan debt for millions of federal borrowers as well as $20,000 for Pell Grant recipients late last month, Biden kept a crucial campaign pledge.
The Monday letter asserts that the president's decision will benefit wealthy Americans, while Biden has emphasized that his plan's income-based eligibility is intended to assist those who need it most, particularly middle-class and lower-income families. Forgiveness of up to $20,000 is available to former low-income Pell Grant recipients, as well as borrowers with earnings of less than $125,000 or households making less than $250,000.
"The key to a better life is education. But over time, too many Americans now find that ticket to be prohibitively pricey "On August 25, Biden stated. Even if you graduate, you might not be able to access the middle-class lifestyle that a college degree formerly made possible.
The president's historic action, which is anticipated to assist up to 43 million debtors, was widely praised. Other campaigners emphasized the need for additional help. Liberal organizations, unions, and progressive Democrats have urged Biden to forgive at least $50,000 in student loans.
The president was attacked by numerous Republicans for the statement's possible effects on the economy and for failing to mention individuals who had already paid off their student debts in the past after Biden's declaration.
The 22 Republican governors wrote in their letter on Monday, "At a time when inflation is sky high due to your unprecedented tax-and-spend agenda, your plan will encourage more student borrowing, incentivize higher tuition rates, and drive-up inflation even further, negatively impacting every American."
With "real benefits for families without considerable effect on inflation," Biden claimed in August that the plan was "economically responsible."
Similar conclusions were made in a research released by Goldman Sachs in August, which also noted that there wouldn't be much of an effect on inflation over time.
According to Goldman Sachs analysts, debt forgiveness that decreases monthly payments "is marginally inflationary in isolation, but the resumption of payments is likely to more than offset this."
The Republican governors also claimed that the anticipated cost of Biden's loan forgiveness scheme, which averages $2,000 per taxpayer, is $600 billion.
However, these figures have varied between various analysts. Following Biden's announcement in August, the White House estimated that the plan would cost about $240 billion. The University of Pennsylvania's Wharton School predicts a price range of $469 billion to $519 billion.
Borrowers who receive assistance may also pay greater taxes in certain states.
The 22 Republican governors who signed the letter urging Biden to revoke his plan to cancel student loans are listed below:
Alabama Gov. Kay Ivey.
Alaska Gov. Mike Dunleavy.
Arizona Gov. Doug Ducey.
Arkansas Gov. Asa Hutchinson.
Florida Gov. Ron DeSantis.
Georgia Gov. Brian Kemp.
Idaho Gov. Brad Little.
Iowa Gov. Kim Reynolds.
Maryland Gov. Larry Hogan.
Missouri Gov. Mike Parson.
Montana Gov. Greg Gianforte.
Nebraska Gov. Pete Ricketts.
New Hampshire Gov. Chris Sununu.
North Dakota Gov. Doug Burgum.
Ohio Gov. Mike DeWine.
Oklahoma Gov. Kevin Stitt.
South Carolina Gov. Henry McMaster.
South Dakota Gov. Kristi Noem.
Tennessee Gov. Bill Lee.
Utah Gov. Spencer Cox.
Wyoming Gov. Mark Gordon.
And most importantly for us — Texas Gov. Greg Abbott.
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