Western South Dakota News

WASHINGTON — U.S. Senator John Thune (R-S.D.) addressed the Senate floor today, criticizing the Biden administration’s new student loan debt transfer initiative. Thune argued that this latest measure would unfairly shift the burden of forgiving billions of dollars in student debt onto those without loans and fails to address the rising cost of higher education.

Thune stated, “Mr. President, last month President Biden announced yet another student loan giveaway.” He noted that the plan includes waiving accrued and capitalized interest for certain borrowers and providing significant loan forgiveness for three-quarters of a million borrowers with an average household income of $312,976.

“President Biden’s latest reckless expenditure of taxpayer dollars will go in part to providing loan forgiveness for three-quarters of a million borrowers with an average household income above $300,000,” Thune added.

According to Thune, the total cost of this initiative is nearly $150 billion, on top of the $475 billion in loan forgiveness announced last summer under the Saving on a Valuable Education Plan (SAVE Plan). He explained that this plan effectively implements large-scale loan forgiveness by creating a system where most future federal borrowers will never fully repay their student loans.

Thune highlighted concerns from the Committee for a Responsible Federal Budget, stating, “‘Including the Biden Administration’s new student debt cancellation plan, we estimate all recent student debt cancellation policies will cost a combined $870 billion to $1.4 trillion. That’s more than all federal spending on higher education over the nation’s entire history.’”

He further criticized that these plans do not address the core issue: the high cost of higher education. Thune expressed concern that such measures might encourage colleges to raise prices and lead students to increase their borrowing.

Thune also questioned the legality of these actions, referencing last summer's Supreme Court decision striking down an earlier student loan forgiveness plan due to lack of statutory authority. He suggested that there is reason to believe that both the SAVE Plan and these latest measures could face similar legal challenges.

Additionally, Thune pointed out what he perceives as fundamental unfairness in asking taxpayers who did not attend college or who have already paid off their loans to bear the costs of others' loan forgiveness. He concluded by questioning whether these initiatives are politically motivated ahead of upcoming elections.

“Last week I joined Senator Cassidy and Congresswoman Foxx on a bicameral letter to the secretary of education urging him to withdraw this latest plan,” Thune said. However, he expressed skepticism about any withdrawal occurring if it might influence votes in November.

Thune ended his remarks by yielding back his time on the Senate floor.

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