Biden vetoes bill, saving his student loan forgiveness program for now

LINCOLN, Neb. (KLKN) — President Joe Biden has put a stop to a congressional effort to squash his student loan forgiveness program.

A bill passed earlier this week sought to block the student loan forgiveness program, which promises to cancel up to $20,000 of debt for millions of borrowers.

On Wednesday, Biden vetoed the bill.

“Some of the same members of Congress who supported this bill voted for huge tax cuts for corporations and the wealthy as well,” he said. “But when it comes to hardworking Americans trying to get ahead, dealing with student debt relief, that’s where they drew the line.”

Critics said the loan forgiveness proposal is unfair.

Creighton University economist Ernie Goss said Biden’s proposal would benefit some states over others. 

“In terms of the taxpayer paying for it, the burden will fall differentially on this part of the country,” he said. 

He also said that it would set a precedent that would discourage people from paying their loans off

“Will students then be encouraged that, ‘Well I’m going to borrow up to the hilt as much as I can’?” Goss said. 

But Biden’s proposal still faces legal barriers.

Nebraska is one of six states suing the federal government over the plan’s legality.

The proposal’s future is in the hands of the Supreme Court.

The justices are expected to issue a decision this summer.