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Manchin, Tester and Sinema Join Senate GOP to Repeal Biden Student Debt Relief

H.J. Res. 45 would reinstate the debt of over 260,000 public service workers whose loan balances have been wiped clean.

Sen. Joe Manchin (left) and Sen. Jon Tester are seen outside the senate luncheons in the U.S. Capitol on May 2, 2023, in Washington, D.C.

Economic justice advocates cried foul Thursday after the U.S. Senate passed legislation that aims to block President Joe Biden’s pending student debt cancellation plan and reverse already-delivered relief.

Democratic Sens. Joe Manchin (W.Va.) and Jon Tester (Mont.), along with right-wing Independent Sen. Krysten Sinema (Ariz.), joined Senate Republicans in supporting H.J. Res. 45.

The Congressional Review Act (CRA) resolution, which House Republicans approved last week with the help of Democratic Reps. Jared Golden (Maine) and Marie Gluesenkamp Perez (Wash.), passed the Senate by a margin of 52-46. Democratic Sens. Michael Bennet (Colo.) and Mark Warner (Va.) didn’t vote. The White House has vowed to veto the measure.

Passage of the legislation elicited a firestorm of criticism from progressive advocates and lawmakers.

“Forty-five million people with student loan debt will never forget when politicians, led by Republican extremists, went out of their way to push millions of working families, including their own constituents, into economic catastrophe by passing this reckless CRA resolution,” Student Borrower Protection Center (SBPC) executive director Mike Pierce said in a statement.

The Biden administration’s popular move to erase up to $20,000 in student debt for millions of federal borrowers with individual incomes below $125,000 and to improve the income-driven repayment (IDR) program is currently on hold as the U.S. Supreme Court considers a pair of deeply flawed legal challenges. A decision in the case is expected sometime this month, but right-wing lawmakers are doing everything in their power to sink the president’s relief initiative regardless of how the high court rules.

Last week, the SBPC and the American Federation of Teachers warned of the “ruinous impact” H.J. Res. 45 would have on millions of working-class households nationwide, with AFT president Randi Weingarten condemning it as “an immoral clawback of the absolute worst kind.”

In addition to blocking the potential cancellation of up to $20,000 in student debt per eligible borrower as well as money-saving changes to the IDR program, the CRA resolution would nullify the seventh and possibly eighth extensions of the federal student loan payment freeze first enacted by President Donald Trump in response to the Covid-19 pandemic. As a result, it would retroactively undo several months of already-canceled payments and waived interest charges, immediately leaving tens of millions of people past due on their loans.

Furthermore, the CRA resolution seeks to reinstate the student debt of more than 260,000 public service workers whose loan balances have been wiped clean since September 2022. If that were to happen, a combined debt burden of nearly $20 billion, which amounts to more than $72,000 per person, would be put back on the shoulders of teachers, nurses, first responders, and others who recently finished making 10 years of qualifying payments under the Public Service Loan Forgiveness program that was enacted on a bipartisan basis in 2007 and streamlined by the Biden administration in 2021.

“Despite right-wing proponents’ attempts to gaslight their own colleagues and the American people on the impact of this bill, this effort would push hundreds of thousands of public service workers back into debt and require the government to charge tens of millions of borrowers for interest that has already been canceled,” said Pierce. “If enacted, it will cause irreparable damage to an already severely broken student loan system and undermine Americans’ trust in our government.”

“Today’s vote makes crystal clear exactly who stood up and fought to protect the economic livelihoods of millions of people with student loan debt—and who schemed to keep them drowning in the debt despair of our nation’s student loan crisis,” he added. “The American people are watching and expect President Biden to keep his promise to veto this horrendous bill and deliver on his promise of student loan debt relief once and for all.”

Ahead of a Wednesday vote to bring H.J. Res. 45 to the Senate floor, Sen. Elizabeth Warren (D-Mass.) said that “Republicans in Congress have shown time and time again that they’d much rather deliver relief to giant corporations and protect tax cheats than help working Americans whose biggest sin was trying to get an education.”

On Thursday, the Massachusetts lawmaker called the bill’s passage “shameful,” and expressed confidence that Biden “will veto” it. Congress doesn’t appear to have the two-thirds majority in each chamber needed to override a veto.

Ahead of Thursday’s vote, Sen. Patty Murray (D-Wash.), a senior member and former chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, stressed that “this Republican bill wouldn’t only rip away relief for borrowers who qualify under the president’s plan.”

“This CRA could impact the pause on loan payments and cause major problems for borrowers who have received relief through the Public Service Loan Forgiveness and income-driven repayment programs,” Murray continued. “That means these Republican efforts could create the perfect storm for more than 260,000 public service workers who have already earned relief.”

“If Republicans were to get their way and pass this bill into law,” she added, “people across the country would have relief they are counting on snatched away from them, plans they have made upended, less money in their pockets, and monthly payments not just abruptly restarted—but maybe even abruptly jacked up by hundreds of dollars.”

Sen. Ed Markey (D-Mass.), a member of the HELP committee, echoed that sentiment.

“Republicans’ cruel attempt to stand in the way of President Biden’s plans to provide relief to tens of millions of Americans suffering under the crushing weight of student loan debt is damaging to our economy and wildly out of touch with the financial realities facing working families,” said Markey.

“The loan forgiveness the president is proposing would mean the difference between buying a home, starting a business, and getting an economic leg up for nearly 50 million working and middle-class Americans, particularly for borrowers of color and their families,” he concluded. “If you kicked Republicans in the heart, you’d break your toe.”

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