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Today, Congressman Bob Latta (R-OH5) provided the following statement in response to President Biden’s announcement of a federal student loan bailout. 

“Under President Biden’s leadership, inflation is skyrocketing, gas prices are higher than ever, and everyone is paying more for just about everything. Instead of working to provide relief to the American people, the President announced a federal student loan bailout plan that will only make matters worse. 

“When taking out debt, borrowers understand they are responsible for paying back what they borrowed. This decision signals to future students who decide to take out student loans that they may never have to pay them back. This irresponsible action is a slap in the face to everyone who has already worked hard to pay off their student loans. Disturbingly, today’s announcement shifts the responsibility of paying off the remaining debt from the student to all American taxpayers, even if they chose not to pursue a college degree. 

“President Biden must get serious about addressing the real issues that are impacting hardworking families across our country. Providing a bailout for student loans is not a responsible short term or long-term solution.”

Background

The new federal student loan bailout applies to borrowers earning up to $125,000 per year and will forgive $10,000 of federal loans and $20,000 of Pell Grant recipients. It also carries a hefty price tag of around $300 billion with individual taxpayers shelling out roughly $2,100 per borrower.

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