Statewide, Iowa — President Biden’s move to provide student loan debt relief for Americans with an annual income below $125,000 is getting some strong reactions from Iowa politicians.
Governor Kim Reynolds says Biden isn’t cancelling student debt, he’s shifting the costs to the taxpayer and to those who worked to pay off their loans. Deidre DeJear, the Democrat who’s running against Reynolds, says the President took a historic step that will begin to address income inequality and open pathways for financial wellness. Republican Senator Chuck Grassley says he doesn’t think the President has the authority to make this move and says cancelling student debt discourages people from keeping their word that they’ll repay loans. Mike Franken, the Democrat who’s running against Grassley, says the President’s plan is a welcome step, including the new sliding scale for repaying student loans that’s based on income, but says there’s still a need for meaningful legislation to help lower the cost of attending college and trade schools.
About half a million Iowans have unpaid student loans. They still owe, in total, over $13 billion as a group on their student loans. The average unpaid balance is nearly $30,000.
Both major party candidates in Iowa’s second congressional district are critical of the President’s move to forgive some student loan debt. Republican Congresswoman Ashley Hinson of Marion says those who didn’t go to college or have paid off their loans shouldn’t be on the hook for someone else’s debt. Liz Mathis of Hiawatha, the Democrat who’s running against Hinson, says the President’s plan falls short in addressing the root problems of college affordability. The major party candidates in Iowa’s first, third and fourth congressional districts have not issued statements on Biden’s decision. Senator Joni Ernst says the President’s plan is unfair to those who didn’t go to college or who have already paid off their student loans.
