More than half of the Republican governors have signed a letter to Biden demanding that he end federal student loan forgiveness.
A letter signed by 22 Republican governors addressed President Joe Biden, urging him to scrap his student loan relief plan to cancel federal student loans.
The governors “fundamentally oppose” Biden’s idea to “force American taxpayers to pay off the student loan debt of an elite few,” they stated in a letter.
The governors, including Florida’s Ron DeSantis and Texas’ Greg Abbott, said Biden’s student loan relief plan would hurt the poor. They argued that salary earners would foot the bill for the advanced degrees of high-paid professionals like lawyers, professors, and doctors.
However, Abdullah Hasan, a spokesman for the White House, said, “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.”
Hasan emailed USA TODAY on Wednesday saying that Republican elected officials are trying to keep working middle-class Americans mired in debt. But Biden is committed to providing student loan relief for people who need it most.
The governors further stated in the letter that Biden’s student loan relief plan would encourage more student borrowing.
“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,” said the 22 Republican governors.
However, in August, Biden defended the idea, calling it “economically responsible” because it would provide real benefits for families without considerable influence on inflation.
Furthermore, in August, Goldman Sachs published an analysis with the same conclusion, stating there would be little effect on inflation.
Analysts from Goldman Sachs said, “debt forgiveness that lowers monthly payments is slightly inflationary in isolation, but the resumption of payments is likely to more than offset this.”
The letter also said that Biden’s plan to forgive student loans would cost taxpayers an average of $2,000 per. This would amount to a total cost of $600 billion.
However, these estimations have varied amongst experts. Cost estimates released by the White House following Biden’s statement in August were about 240 billion. According to projections made by Penn’s Wharton School, the final price tag may be anywhere from $469 billion to $519 billion.
Borrowers who receive student loan relief may be subject to additional taxes in some states.