ICYMI: Cassidy Pens Op-ed on Biden’s Student Loan Schemes, Republican Package to Lower Education Costs and Student Debt
WASHINGTON – Today, U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, penned an op-ed in the Washington Examiner blasting President Biden’s student loan schemes. Specifically, he rebuked Biden’s new income-driven repayment (IDR) rule, which will result in a majority of bachelor’s degree student loan borrowers not having to pay back even the principal on their loans, costing taxpayers as much as $559 billion. Recently, Cassidy introduced a Congressional Review Act (CRA) resolution to overturn President Biden’s new IDR rule.
Additionally, Cassidy highlighted his groundbreaking Lowering Education Costs and Debt Act, a package of five bills aimed at directly addressing the issues driving the skyrocketing cost of higher education and the increasing amounts of debt students take on to attend school. The package includes the College Transparency Act (CTA), which allows students to compare the differences between prospective colleges and majors to see if the value of the degree is worth the cost. Unlike President Biden’s student loan schemes, these policies actually address the root causes of the student debt crisis.
“Just like Biden’s original student debt cancelation scheme, this IDR rule does not “forgive” debt. It transfers the burden of $559 billion in federal student loans to the 87% of Americans who don’t have student loans – including to those who earn far less than some who took the loans.” wrote Dr. Cassidy. “Aside from being unfair, Biden’s student loan forgiveness does not address the root causes that created the debt in the first place. For example, he does not hold colleges or universities accountable for rising costs.”
“College is one of the largest financial investments many Americans make, but there is little information for students to know they are making the right decision for the amount they are borrowing,” continued Dr. Cassidy. “You don’t buy a car without the ability to compare prices, quality, and financing options. The same goes for buying a house. Why can’t we do this for higher education?”
“Unlike Biden’s student loan schemes, [the Lowering Education Costs and Debt Act] is a commonsense solution that actually addresses the root causes of our student debt crisis. It improves transparency and ensures students have all the tools available to pick the college that is best for their future, both educationally and economically,” continued Dr. Cassidy.
This week, Cassidy headlined an event hosted by the American Enterprise Institute (AEI) to discuss his student loan reform package that addresses the drivers of skyrocketing higher education costs and the increasing student debt burden.
Read the full op-ed here or below.
Last summer, President Joe Biden sought to transfer $300 billion in student loan debt from those who willingly took it on to attend college and make more money after graduation to the taxpayers who chose not to attend college, paid their way through school, or already paid off their loans. The Supreme Court ruled this unconstitutional. Undeterred, Biden’s next student loan forgiveness scheme is bigger than the first.
The new income-driven repayment (IDR) rule allows a majority of bachelor’s degree student loan borrowers to avoid paying back even a loan’s principal. Ninety-one percent of new student debt would be eligible for reduced payments, subsidized by taxpayers.
Just like Biden’s original student debt cancelation scheme, this IDR rule does not “forgive” debt. It transfers the burden of $559 billion in federal student loans to the 87% of Americans who don’t have student loans – including to those who earn far less than some who took the loans. This is why Republican colleagues and I introduced a Congressional Review Act (CRA) resolution of disapproval seeking to block this policy.
Aside from being unfair, Biden’s student loan forgiveness does not address the root causes that created the debt in the first place. For example, he does not hold colleges or universities accountable for rising costs. In the last 30 years, tuition and fees have jumped at private non-profit colleges by 80%. At public four-year institutions, they’ve jumped by 124%.
A student enrolling in a particular university has no systematic way to know what the likelihood of graduation is, how much they will have to borrow, and what their projected income might be if they do graduate with the degree to which they aspire. Universities with low graduation rates don’t have to reveal any of this.
Moreover, there is no standard format that explains and breaks down student aid to prospective enrollees. What one university presents as a grant may actually be a loan to be paid back.
College is one of the largest financial investments many Americans make, but there is little information for students to know they are making the right decision for the amount they are borrowing. You don’t buy a car without the ability to compare prices, quality, and financing options. The same goes for buying a house. Why can’t we do this for higher education?
As the lead Republican on the Senate Health, Education, Labor & Pensions (HELP) Committee, I led my colleagues in introducing the Lowering Education Costs and Debt Act, a package of five bills aimed at directly addressing the issues driving the skyrocketing cost of higher education and the increasing amounts of debt students take on to attend school.
Included in this Republican package is the College Transparency Act (CTA), which allows students to compare the differences between prospective colleges and majors to see if the value of the degree is worth the price of admission.
Specifically, the CTA makes available information on cost, enrollment, retention, completion, and post-college earnings of a particular university or program of study – with strict data security standards in place to ensure Americans’ privacy is protected.
Unlike Biden’s student loan schemes, this is a commonsense solution that actually addresses the root causes of our student debt crisis. It improves transparency and ensures students have all the tools available to pick the college that is best for their future, both educationally and economically.
The president’s student loan policies are not a fix — they are merely a Band-Aid that forces taxpayers to shoulder the responsibility of paying off someone else’s debt.
Biden’s failure to address rising tuition rates won’t hurt the rich — only the middle and lower-income Americans who will continue to be forced to take out more and more loans just to get an education.
Republicans have brought forth a solution that holds colleges accountable for rising costs and empowers students and families to make the best decision for their college career and beyond. But if Congress fails to act, students will continue to drown in debt without a path for success.
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