Senate halts Biden’s student loan relief plan giving 40 million borrowers up to $20,000 in forgiveness

Senate halts Biden’s student loan relief plan giving 40 million borrowers up to $20,000 in forgiveness

The Democrat-controlled Senate has passed a measure that overturns President Biden’s sweeping student loan forgiveness plan.

The Senate passed the measure 52-46 just days after it cleared the Republican-controlled U.S. House, The Hill reported. Joining Republicans in voting against the measure were Democrats Jon Tester of Montana and Joe Manchin of West Virginia and independent Krysten Sinerma of Arizona.

A White House veto is expected with neither chamber being able to muster the two-thirds vote needed to override.

“This resolution is an unprecedented attempt to undercut our historic economic recovery and would deprive more than 40 million hard-working Americans of much-needed student debt relief,” a White House statement noted last month.

The Senate vote is the latest stinging blow to Biden’s plan, which would cancel up to $10,000 in student loan debt for those making less than $125,000 or households earning less than $250,000. People who received Pell Grants in college are eligible for up to $20,000 in loan forgiveness.

READ MORE: When will student loan payments resume if debt ceiling bill is approved? Is forgiveness an option?

The measure is currently before the U.S. Supreme Court which is expected to issue its ruling this month.

In a statement, Manchin said his vote centered on the impact sweeping loan forgiveness would have on the national debt.

“Today, I voted to repeal the Biden Administration’s student loan cancellation proposal because we simply cannot afford to add another $400 billion to the national debt. There are already more than 50 existing student loan repayment and forgiveness programs aimed at attracting individuals to vital service jobs, such as teachers, health care workers, and public servants. This Biden proposal undermines these programs and forces hard-working taxpayers who already paid off their loans or did not go to college to shoulder the cost. Instead, we should be focusing on bipartisan student debt reforms that reduce the cost of higher education and help all Americans,” Manchin said.

READ MORE: Student loan forgiveness: Congress considers new repayment start date

Biden’s debt relief plan is expected to cost taxpayers some $400 billion.

Earlier this week, Republicans were able to negotiate a measure to restart payments student loans – on hold since the start of the COVID-19 pandemic – as part of debt ceiling negotiations. The payments are set to begin 60 days after the June 30 deadline, making the latest deadline date Aug. 30.