US Senate votes against Biden’s plan to cancel student loans

Some Democrats voted with Republicans, allowing passage of a resolution against the plan.

The White House has already announced that Biden will veto the resolution, but he is not out of danger just yet. Later this month, the Supreme Court will also rule on the debt relief program and the majority is conservative. In several states, judges have said the plan is against the law. Now the Supreme Court has to take a decision on that.

Under Biden’s program, Americans could get an exemption of up to $20,000 (18,600 euros) based on income. 25 million people have applied to be eligible for the scheme. Republicans think this is too expensive a measure and also think it is unfair to Americans who haven’t studied or borrowed.

For the past three years, Americans haven’t had to pay back any of their student loans because of the coronavirus pandemic. But maybe in a few months the payback will resume. Under the deal Biden struck with Republicans on the debt ceiling, it has been agreed that payments will resume. The Senate has yet to vote on raising the debt ceiling.