Texas Governor Greg Abbott, with 21 other governors, sent a letter on Monday to the president asking him to discard his student loan relief plan, claiming it would be harmful to working-class Americans.
The governors said they “fundamentally oppose” the plan that would “force American taxpayers to pay off the student loan debt of an elite few.” It is estimated that the cost to each American taxpayer would exceed $2,000 or $600 billion total, “a price the people of our states cannot afford,” the letter dated September 12 read.
“Only 16-17 percent of Americans have federal student loan debt, and yet, your plan will require their debts be redistributed and paid by the vast majority of taxpayers,” the governors charged. “Shifting the burden of debt from the wealthy to working Americans has a regressive impact that harms lower-income families.”
Since borrowers who owe $50,000 or more usually have graduate degrees, this means “hourly workers will pay off the master’s and doctorate degrees of high salaried lawyers, doctors, and professors.”
The Biden administration announced the student loan relief plan on August 24. Individuals earning less than $125,000 a year can qualify for $10,000 in relief, according to the White House press release. Those who received Pell grants in their undergraduate career can qualify for $20,000 in forgiveness.
Married couples not exceeding the income threshold of $250,000 will be eligible for student loan debt forgiveness.
The governors’ letter argued that students with loan debt consented to the loan terms in exchange for their education.
“Simply put, your plan rewards the rich and punishes the poor,” the letter reads. “College may not be the right decision for every American, but for the students who took out loans, it was their decision.”
Americans who chose not to take out student loans “should certainly not be forced to pay for the student loans of others,” the governors claimed. The governors worry tuition rates could go up, as well as student loan borrowing.
The letter from Abbott and other Republican governors also points to rising inflation as a reason Biden should scrap the plan. Other governors who signed the letter were Larry Hogan from Maryland, Ron DeSantis from Florida, Brian Kemp from Georgia, and Kim Reynolds from Iowa.
When the Biden Administration announced the student loan debt relief program, it was also announced that loan payments would be paused again until December 31.
The White House press release stated this would be the last time repayments were paused, and it was expected they would resume in January 2023.
