Jason Smith assails new student forgiveness plan

U.S. Rep. Jason Smith is condemning the Biden administration's plan announced Wednesday, Oct. 4, to cancel $9 billion in student debt for 125,000 borrowers.

The move comes as the pause of loan repayment by U.S. Department of Education ended Oct. 1 for 28 million American students.

"President (Joe) Biden's billion-dollar forgiveness scheme isn't just unconstitutional, it's an immoral transfer of wealth from the working class to the wealthy," wrote Smith in an email Friday, Oct. 6, to the Southeast Missourian.

Smith, who has represented Missouri's 8th Congressional District since 2013 and is current chairman of the House Ways and Means Committee, elaborated.

"Under (Biden's) illegal policy, the 87% of Americans who never took on student loans are forced to subsidize some of the 13% who did. Although I'm still paying off student loans I chose to take out, I will NEVER (Smith's emphasis) support a policy to force my neighbors to cover the cost for my college degrees. I'll continue fighting to bring an end to the left's war on the working class."

The promised forgiveness is largely the result of fixes to the student-loan system making it easier for some borrowers to overcome technicalities and paperwork challenges.

Included in the estimated 125,000 receiving loan repayment relief are 53,000 who fall under the Public Service Loan Forgiveness program. These are borrowers who have worked for the government or eligible not-for-profits for at least 10 years and who paid their loans during that time. Also included are nearly 22,000 borrowers identified as having a total and permanent disability.

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