BATON ROUGE, La. — U.S. Sen. Bill Cassidy (R - La. ) said President Joe Biden’s decision to provide thousands of dollars in student loan debt cancellation to millions of Americans is a “spit in the face of Louisiana families trying to get by.”
While Rep. Troy A. Carter (D - La.) said Biden's action, "brings possibility and new hope for the approximately 43 million Americans burdened by the heavy load of federal student loan debt."
Biden on Wednesday announced his long-awaited plan to deliver on a campaign promise of student loan forgiveness. Borrowers who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for the $10,000 loan forgiveness. For recipients of Pell Grants, which are reserved for undergraduates with the most significant financial need, the federal government would cancel up to an additional $10,000 in federal loan debt.
If his plan survives legal challenges that are almost certain to come, it could offer a windfall to a swath of the nation in the run-up to this fall's midterm elections.
““President Biden didn’t ‘forgive student debt,’ he chose to shift the burden of the well-off onto the backs of the 87 percent of Americans who chose to not go to college, already paid off their loans, or saved to not take them out in the first place," Sen. Cassidy said. "This decision is a spit in the face of Louisiana families who are struggling to get by. This is spending at least $300 billion we do not have which will make inflation worse."
He added that the announcement does nothing to address to the root problem of the high price of education.
On the other side of the aisle, Rep. Carter, who represents most of New Orleans, as well as parts of Jefferson Parish and Baton Rouge, said the decision marks a positive shift in the focus of federal spending toward overlooked communities.
“America regularly forgives the debt of businesses, industries, and even small countries," Carter said. "Today, President Biden stood with working Americans and communities of color to forgive up to $20,000 of federal student loan debt and extend to the payment pause for four more months. "
Still, Carter who introduced a bill last year to forgive up to $50,000 in student loans, said more needs to be done to make higher education affordable.
Of the 43 million with student loan debt, the average balance is $37,667, according to federal data. Nearly a third of borrowers owe less than $10,000, and about half owe less than $20,000. The White House estimates that Biden's announcement would erase the federal student debt of about 20 million people.
Nearly one third of all American students take out loans to pay for college, with an average balance of $37,667, according to federal data.
The Associated Press contributed to this report.