Bill Cassidy criticizes Biden administration’s attempt to forgive student loans.
Senator Cassidy Accuses Biden Administration of Pushing Costly Student Loan Forgiveness Regulation
Senator Bill Cassidy (R-LA) has strongly criticized the Biden administration for persistently pushing through a new and expensive student loan forgiveness regulation, despite its rejection by the Supreme Court earlier this year. In an engaging op-ed published in the Washington Examiner, Senator Cassidy, who holds a prominent position on the Senate’s Health, Education, Labor, and Pensions committee, argues that the administration’s income-driven repayment regulations are even more ambitious than the failed attempt to cancel up to $20,000 in loans for borrowers earning less than $125,000. These regulations allow borrowers to make payments based on their discretionary income, which is defined as income above the poverty line.
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If borrowers consistently make payments for at least ten years, they may become eligible for loan forgiveness. However, Senator Cassidy highlights a concerning aspect of the new income-driven repayment rule, stating, ”The new income-driven repayment 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 cancellation 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.”
Senator Cassidy has taken action by introducing a Congressional Review Act resolution to repeal the regulation. While such resolutions have been successful in passing through both chambers of Congress, they have typically been vetoed by President Joe Biden.
Another critical issue highlighted by Senator Cassidy is the failure of the regulation to address the skyrocketing costs of higher education. He writes, “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 increased by 80% at private nonprofit colleges and by 124% at public four-year institutions.”
Senator Cassidy emphasizes that a comprehensive solution is needed to tackle the problem of rising tuition rates. He mentions a package of bills known as the Lowering Education Costs and Debt Act, introduced this year, which aims to alleviate the issues with higher education funding that have led to excessive tuition fees. He concludes by warning, “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.”
Click here to read more from the Washington Examiner.
What financial burden would the proposed student loan forgiveness regulation place on taxpayers, according to Senator Cassidy
Ster competition or transparency, and it does not encourage colleges to control costs associated with tuition and fees.” With this critique, Senator Cassidy highlights the potential negative implications of the income-driven repayment regulation, suggesting that it may encourage a lack of responsibility among borrowers and fail to address the root causes of rising tuition costs.
In addition to his criticisms of the income-driven repayment regulation, Senator Cassidy also raises concerns about the Biden administration’s disregard for the Supreme Court’s decision on student loan forgiveness. He argues that by persistently pushing for costly student loan forgiveness despite the Supreme Court’s rejection, the administration is undermining the authority of the judiciary and disregarding the rule of law. Senator Cassidy asserts that this behavior sets a dangerous precedent, where the executive branch can bypass the judicial system and impose its own agenda without regard for legal limitations.
Furthermore, Senator Cassidy notes the significant financial burden that the proposed student loan forgiveness regulation would place on taxpayers. He highlights that the majority of bachelor’s degree student loan borrowers would be eligible for reduced payments, with taxpayers subsidizing a considerable portion of the loan debt. In light of this, Senator Cassidy questions whether it is fair for taxpayers to bear the burden of student loan forgiveness, especially considering that many taxpayers did not have the opportunity to pursue higher education or acquire student loan debt in the first place.
Senator Cassidy concludes his op-ed by calling on the Biden administration to reconsider its approach to student loan forgiveness. He emphasizes the importance of addressing the root causes of rising tuition costs and encourages the administration to seek alternative solutions that foster competition and transparency in higher education. Senator Cassidy maintains that while addressing the issue of student loan debt is necessary, it should be done in a fair and responsible manner that takes into account the interests of all Americans.
In summary, Senator Cassidy’s critique of the Biden administration’s persistent push for a new and costly student loan forgiveness regulation reflects his concerns about the potential negative implications, the disregard for the Supreme Court’s decision, and the financial burden it would place on taxpayers. His op-ed serves as a call to reconsider the approach to student loan forgiveness and to pursue alternative solutions that address the root causes of rising tuition costs while being fair and responsible to all Americans.
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