Governor Greg Abbott Demands Joe Biden Cancel Student Loan Relief Plan

Greg Abbott joined 21 other Republican governors in pushing President Biden to reject his student loan scheme. They believed reducing debt would damage the working class.

In a letter, the governors said that the loan forgiveness plan is a bailout for a small number of Americans who are mostly well off. 

Those with the biggest debt, $50,000 or more, had graduate degrees, they noted. Hourly employees will pay for high-paid lawyers, doctors, and professors' master's and PhD degrees.

Last month's program won't help most of these people with their loans. The program is for those making less than $125,000.

Applicants who qualify can only get up to $10,000 in relief, unless they get Pell Grants, which are for students with low incomes. In that case, they can get up to $20,000 in relief.

The program recommends a new way to repay student loans that caps monthly payments at 5% of excess income. This halves monthly payments.

The White House says that the program is needed because the cost of college is going up and more and more people need secondary degrees to stay competitive in the job market.

The Education Department says that the average first-year student who takes out loans leaves college with almost $25,000 in debt.

The Texas Higher Education Coordinating Board says that 56% of students who graduated from four-year public universities in Texas in 2021 had about $25,000 in student debt.

In 2019, 81% of Black bachelor's degree graduates in Texas had some kind of debt, while only 52% of white bachelor's degree graduates in Texas did.