Student loan ruling sends shockwaves all the way to CSRA

AUGUSTA, Ga. (WRDW/WAGT) – Reaction is pouring in from across the two-state region after the Supreme Court ruled the Biden administration overstepped its authority in trying to cancel or reduce student loan debt.

The ruling effectively kills the administration’s $400 billion plan to cancel up to $20,000 in federal student loans for 43 million people. Of those, 20 million would have had their remaining student debt erased completely.

Political reaction is coming from both sides of the aisle, and the University System of Georgia – of which Augusta University is a part – noted that it’s actually been making college cheaper in recent years.

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The news hit some during this interview.

“I’m probably going to call my friends here and let them know what happened,” said Luke Guy, a medical student at Augusta University Medical College of Georgia.

For others, just disappointment. Sydney Versteeg, a physician assistant student at the Augusta university said, “Me and a lot of my classmates were really excited and hopeful that something like that would pass, we’ve been putting in a lot of really hard work for several years in undergraduate and graduate school…”

For AU’s own medical community of graduate-level students, it’s a new reality on the already growing bill.

Luke Guy continued, “The biggest thing for me as a student here, you know, is it’s really expensive to go to medical school, dental school, any post-graduate education…”

For others who already have their degrees behind them and on the wall, like attorney Chris Rhodes at the Mike Hostilo Law Firm, to him today’s failure was expected

“A lot of student loans, that’s a car payment, a mortgage payment, it’s a substantial amount of money 14:30:16 so I think for a lot of people it will change their daily lives, daily income, when they budget. It’ll change their budget.”

He’s been hitting his 10 thousand dollar loan year by year, but says the investment to his own education that led to his job was worth weighing the cost. “I have student loans, of course it’d be nice to not have to pay that. *Laughs* but I think that’s everybody would like that better.”

South Carolina was one of the plaintiffs in the lawsuit challenging the plan, and the state’s attorney general applauded the 6-3 ruling.

“I’m pleased the Court agrees with our position that Joe Biden does not have the authority to cancel and ignore debt. He knew Congress was the only body with the power to do so, but when they didn’t do what he wanted, he took matters into his own hands to unlawfully deliver on a campaign promise,” Attorney General Alan Wilson said.

He added: “When the federal government acts outside its powers to promote its own agenda, I’ll be there to fight back.”

Aside from legal issues, Wilson said forgiving student loans is a poor policy decision with unfair and long-lasting consequences.

Rep. Rick Allen, R-Augusta, was also glad for the decision.

“My Republican colleagues and I have been sounding the alarm on President Biden’s reckless student loan bailout since the plan was announced,” he said in a statement.

He said the ruling ensures the public “won’t be stuck paying the bill for those who knowingly take out loans.”

He said “attempting to force hardworking taxpayers to pick up the tab for student loans they didn’t borrow is simply unconstitutional, and would have aggressively driven up the cost of higher education.”

Sen. Raphael Warnock, D-Ga., called the decision “devastating news” for millions of borrowers.

“The Supreme Court’s decision to usurp the President’s executive authority to provide meaningful debt relief isn’t just bad for the everyday, hardworking Georgians who are being held back financially by crippling debt, but it’s also terrible for our entire economy and sets a dangerous precedent that binds the hands of the elected executive from taking action that reflects the will of the people,” he said.

He said after the ruling, leaders have “an even greater moral urgency to deliver relief for these borrowers.”

In the long term, he said it’s “imperative that Washington help prevent future students from suffering similar financial burdens by bringing down the costs of college so that the promise of higher education is more affordable and accessible.”

Sen. Lindsey Graham, R-S.C., called the ruling “a necessary check on an out-of-control executive who clearly disregarded the law in order to achieve a political result.”

He said the administration’s move was all about politics and the court was right to “slam dunk” what he called an overreach.

Other South Carolina politicians in support of the decision included Republican presidential hopefuls Nikki Haley and U.S. Sen. Tim Scott, as well as Gov. Henry McMaster.

“The Biden administration’s student loan forgiveness scheme was a ridiculous pander to the radical left and an insult to Americans who work hard, pay their bills, and play by the rules,” McMaster said. “Thank goodness we have a Supreme Court that defends the Rule of Law and common sense.”

Universities’ reaction

The University System of Georgia said it’s worked over the past several years to better educate students about options to borrow less money while making affordability a top priority.

USG’s “Know More Borrow Less” initiative provides students with updated tools that clearly show costs, financial aid awarded and loans available with a recommended loan amount rather than just the maximum offered.

All 26 USG institutions have also simplified, standardized and automated how students and families can resolve federal aid form verification issues.

Georgia remains among the lowest in the nation and across the South for in-state tuition and fees, the university system said, adding that for the sixth time in eight years, tuition will remain flat.

Additionally, USG in 2022 actually reduced college costs by eliminating a mandatory special institutional fee that had been charged systemwide since 2009, saving students and families anywhere between $340 to $1,088 a year.

Student loan payments that have been frozen for the last three years because of the pandemic are set to restart in October. That was going to happen no matter what the Supreme Court decided. Interest will start accruing Sept. 1.

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