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ICYMI: Rubio: LOAN Act Superior to Debt Forgiveness

May 10, 2022 | Press Releases

Biden’s Student Loan Fraud
U.S. Senator Marco Rubio (R-FL)
May 9, 2022
Daily Wire

…[D]uring a time of record-high inflation, President Biden is going to ask America’s working families to pay off the student loans of the privileged. Is that fair? The answer should be obvious, but apparently it isn’t to Democrats. 
On April 28, the president announced he is “taking a hard look at whether there will be debt forgiveness” of up to $10,000 per borrower, the number he campaigned on in 2020…. Debts have to be paid, and if the hundreds of billions of dollars that students owe to the government are not paid by their borrowers, the burden of payment will fall on all American taxpayers….
Forgiving debt would take money from working Americans who have already paid off student loans—or who chose not to go to college to conserve their finances—and give it to America’s most privileged. For an administration so concerned with “equity,” that is a shockingly inequitable proposal.
Fortunately, there’s a better way to help students…. My LOAN Act would eliminate federal student loan interest rates. It would replace them with a one-time, non-compounding financing fee to be paid out over the life of the loan. That way, prospective students would have complete price transparency. Borrowers would be placed in an income-based repayment plan by default, which would tailor monthly charges to individual students’ financial circumstances.
The LOAN Act would free students from the snowballing debt effect, which holds many young Americans back from marrying, settling down, and giving back to their communities. It would also put us on a more sustainable path moving forward—unlike President Biden’s debt forgiveness plan, which would just create an expectation for additional, future debt cancellations….
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