Foxx Skewers Biden Over IDR Plan Following CBO’s Blockbuster Cost Estimate
WASHINGTON, D.C., March 13, 2023
Today, Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) skewered the Biden administration’s IDR rule after the Congressional Budget Office estimated this radical policy will cost taxpayers $230 billion. The IDR proposal will severely exacerbate rising college costs and excessive borrowing.
“The administration’s Income-Driven Repayment rule is nothing more than a backdoor attempt to provide free college by executive fiat,” said Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC). “Transferring $230 billion from borrowers who willingly took out debt to taxpayers who did not is fiscally irresponsible and morally reprehensible. Make no mistake, I soundly reject this illegal abuse of power.”
Background: Last month, Foxx led a bicameral letter to Secretary Cardona arguing that the IDR proposal would turn a safety-net for low-income federal student loan borrowers into an unsustainable transfer of wealth from hardworking taxpayers to college-educated individuals. The letter concluded by stating, “Borrowing for college will become the default for every household, including for those who can afford to pay and otherwise would have paid out-of-pocket. This proposal is reckless, fiscally irresponsible, and blatantly illegal and, as such, it should be rescinded.”