67 Lawmakers Call on Biden Administration to Rescind Student Loan Proposal

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U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor and Pensions (HELP) committee, U.S. Representative Virginia Foxx (R-NC), chairwoman of the House Education and the Workforce committee, and 67 lawmakers this week called on the Biden administration to rescind their reckless Income Driven Repayment (IDR) rule proposal, which would reduce the amount of student loan debt borrowers will have to pay back by 40 percent. According to Penn-Wharton, the IDR proposal will cost taxpayers an estimated $361 billion over the next ten years, but a non-partisan student loan expert believes it could cost $1 trillion.

“This proposed regulation…would turn a safety-net for low-income federal student loan borrowers into an unsustainable transfer of wealth from hardworking taxpayers to college-educated individuals,” said the lawmakers. “This proposal ultimately turns the Direct Loan program, which provides millions of Americans with the opportunity to move up the economic ladder, into an untargeted grant. This is a drastic shift in policy which you do not have the legal authority to make.”

“Borrowing for college will become the default for every household, including for those who can afford to pay and otherwise would have paid out-of-pocket,” they continued. “This proposal is reckless, fiscally irresponsible, and blatantly illegal and, as such, it should be rescinded.”

Earlier this month, Cassidy and Foxx rebuked the administration’s IDR proposal and called on Education Secretary Miguel Cardona to extend the rushed public comment period from 30 days to 60 days.

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