Ranking Member Cassidy Slams Biden’s Backup Student Loan Scheme Shifting 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, slammed President Biden’s latest student loan scheme that further shifts college debt onto taxpayers. Specifically, this set of proposals allow the administration to transfer the debt for those with accrued interest as well as those who have failed to repay their loans within 20 years.  

These polices are designed to replace Biden’s original student loan scheme that was struck down by the Supreme Court last year. 

“The Supreme Court already ruled the Biden administration doesn’t have the authority to unilaterally take student debt from those who willingly took it on and transfer it to taxpayers who chose not to go to college or already worked to pay their loans off. Now, the Department of Education is completely rewriting the Higher Education Act piece by piece to resurrect this unconstitutional student loan scheme,” said Dr. Cassidy. “Where is the relief for the guy who didn’t go to college but is working to pay off the loan on the truck he takes to work? What about the woman who paid off her student loans, but is now struggling to afford her mortgage? Instead, the Biden administration is sticking these Americans with the bill of someone else’s student debt.” 

This latest policy is in addition to the administration’s income-driven repayment (IDR) scheme, which will 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.   

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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