Ranking Member Cassidy on Biden-Harris Admin Withdrawing its Student Loan Scheme

WASHINGTON – Today, U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, released a statement on the Department of Education officially withdrawing its backup student loan scheme to transfer student debt onto American taxpayers (part 1, part 2). Specifically, these Biden-Harris administration policies attempted to again unilaterally cancel student debt for borrowers with no clear legislative authority. 

“The Biden-Harris administration’s student loan schemes were always a lie,” said Dr. Cassidy. “With today’s latest withdrawal, they are admitting these schemes were nothing more than a dishonest attempt to buy votes by transferring debt onto taxpayers who never went to college or worked to pay off their loans.” 

These new Biden-Harris policies were designed to replace the administration’s original student loan scheme that was struck down by the Supreme Court last year. Cassidy also led a Congressional Review Act (CRA) to overturn the original Biden-Harris student loan policy, which Congress passed with bipartisan support.    

This is in addition to the administration’s income-driven repayment (IDR) scheme, which allow a majority of bachelor’s degree student loan borrowers to have a zero monthly “payment” amount due and not pay back even the principal on their loans, costing taxpayers as much as $559 billion. This scheme has not been withdrawn by the Biden-Harris administration and is still being litigated in federal court. 

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