Foxx on AEI’s Podcast Talks Biden Bailout and GOP Solutions
WASHINGTON, D.C., December 20, 2022
President Biden promised free college on the campaign trail. Unable to secure Congressional approval to enact his radical agenda, the Biden administration is unilaterally dismantling the federal student loan system. It’s costing taxpayers a fortune—almost $1 trillion.
In Case You Missed It, Education and Labor Committee Republican Leader Virginia Foxx (R-NC) joined American Enterprise Institute (AEI) Senior Fellow and Deputy Director, Education Policy Studies Nat Malkus for an episode of The Report Card. Key excerpts are below.
There’s no manna from Heaven coming:
“[D]emocrats are always very good at capturing language. They’re calling this student loan forgiveness, but what I prefer to call it is a transfer of wealth… [T]his is money borrowed that is owed to the American taxpayer. …[I]t’s money on the books as loans... [President Biden’s bailout only] “applies to about 13 percent of the American people. So, 87 percent of the American people are going to… [have] to pay back what those 13 percent… [owe]. …I’d like to make that clear, it’s not a forgiveness. You don’t just wipe the slate clean, there’s not manna from Heaven that comes down and forgives this. You can’t just write this off.”
This student loan bailout will start a tsunami:
“I’m afraid [this student loan bailout is] going to have a terrible effect on what’s going to happen in the future. Because, why would a student who’s going to college this year [and is] taking out a loan believe they have to pay back the loan when loans are being paid back for other people? …I just think it’s starting almost a tsunami that’s going to be very difficult to control.”
Biden ’s bailout doesn’t solve the ballooning costs of college:
“What we don’t want is to provide blanket bailouts to students and borrowers. What we’d like to see happen, first of all, is college costs stop going up... What the President is doing, what the Democrats are doing is going to do nothing about lowering the cost of post-secondary education. And that’s as big a tragedy as the transfer of all this debt onto taxpayers.”
Republicans have solutions:
“What we want to do is targeted relief for those who were harmed by the broken and complicated system… but it’s got to protect the interests of students and taxpayers and it’s got to be accompanied by real reforms.”
Republican’s REAL Reforms Act ensures:
“[S]tudents… are on the hook only for what they actually borrow, but that they pay that back with interest... so pay back what you owe, but not more. This shouldn’t be a program for the government to make money, nor should be a giveaway...”
Listen to the entire podcast here.
Read more about the REAL Reforms Act here.