Governor Cox signs a letter to the President, opposing the student loan plan
SALT LAKE CITY – Governor Spencer Cox is among 22 Republican governors who have signed a letter to President Joe Biden, asking him to immediately withdraw his student loan cancellation plan.
The letter says they “support making higher education more affordable and accessible,” but they argue the current plan does not help in that effort.
Biden’s plan forgives up to $10,000 in student loan debt for former students and some current students. It also waives up to $20.00 for borrowers who have qualified for Department of Education pell grants.
The discount is for individuals earning less than $125,000 a year and couples earning less than $250,000. The White House says no high-income people – in the top 5% – will benefit from the plan.
They say the plan accomplishes three things:
- Provide targeted debt relief to address the financial damage of the pandemic, in line with the President’s campaign promise.
- Make the student loan system more manageable for current and future borrowers.
- Protect future students and taxpayers by lowering the cost of college education and holding schools accountable when they raise prices.
The Committee for a Responsible Federal Budget, a nonpartisan organization, estimates the plan will cost between $440 billion and $600 billion over the next 10 years.
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Cox and other Republican governors argue that Biden’s plan benefits high-income earners while shifting the responsibility to pay those loans to hard-working Americans who have avoided going into debt or have since paid off their loans.
“Americans who have not chosen to take out student loans themselves should certainly not be forced to pay the student loans of others,” the letter states. “At a time when inflation is skyrocketing due to your unprecedented tax and spending agenda, your plan will encourage more student loans, incentivize higher tuition fees and further increase inflation, which will have a negative impact on all Americans.”
The letter also argues that the president does not have the authority to cancel student loans.
“For these reasons and more, we ask that you withdraw your student loan plan immediately,” according to the letter.
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In response to the letter signed by Cox, Commissioner Dave Woolstenhulme of the Utah Higher Education System sent the following statement to KSL:
“Regardless of the outcome of the letter signed by 22 of our nation’s governors opposing the Biden administration’s student loan forgiveness plan, we support working with our governor, the legislature, college presidents, and students to keep the cost of college affordable and accessible to students.”
“The benefits of higher education are many, and an approach to affordability would most help future students access these benefits responsibly.”