Ranking Member Cassidy on Federal Court Blocking Biden’s Student Loan Scheme to Shift $559 Billion in Student Debt Onto Taxpayers

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 following a federal court temporarily blocking a portion of President Biden’s income-driven repayment (IDR) scheme. This student loan scheme allows 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, shifting as much as $559 billion in student debt onto taxpayers.    

Last year, President Biden announced the final IDR rule following the Supreme Court ruling to strike down his illegal student debt scheme that attempted to transfer hundreds of billions of dollars in student loan debt onto taxpayers. In addition to Biden’s IDR policy, the administration has worked to implement other student loan schemes, costing taxpayers up to $1.4 trillion.   

“Just like Biden’s other student loan schemes, this IDR policy does not ‘forgive’ debt. It transfers the burden of $559 billion in debt from those who willingly took it on to Americans who chose to not go to college or already sacrificed to pay off their loans,” said Dr. Cassidy. “These unfair, irresponsible policies from President Biden are nothing more than a cynical attempt to buy votes before the next election.” 

While the Biden administration prioritizes its student loan schemes, it failed to properly implement the new Free Application for Federal Student Aid (FAFSA) program. These continued delays prevent students and families from accessing crucial financial aid information as they choose the college they can afford to attend.   

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