WASHINGTON – Today, Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) delivered the following statement, as prepared for delivery, at the Committee’s markup to consider H.J. Res. 45, a Congressional Review Act resolution to overturn Biden’s student loan debt transfer scheme:
“The Committee is meeting today to discuss H.J. Res. 45, a Congressional Review Act resolution to overturn Biden’s student loan bailout.
“I thank Representative Bob Good for sponsoring this crucial resolution.
“If passed through both chambers, the joint resolution being debated today would nullify President Biden’s radical plan to cancel up to $20,000 in student debt by executive fiat. For two years, President Biden has attempted to push a free college agenda through radical regulations including income-driven repayment, executive actions like blanket cancellation, and his permanent pause on repayment.
“Student loan ‘forgiveness’ is nothing more than a transfer of wealth from those who willingly took on debt to those who did not or had the grit to pay off their loans.
“Just 13 percent of Americans hold student loan debt and over half is held by graduate students. In other words, President Biden is forcing the very people Democrats claim to care about – low-income families, disadvantaged populations, and blue-collar workers who never stepped foot on a college campus – to pay someone else’s tuition bill.
“How much would it cost the American taxpayer? President Biden’s student loan bailout alone will cost taxpayers an estimated $315 billion according to the Congressional Budget Office. Coupled with his reckless income-driven repayment plan and other expansive regulations, his student loan scams could cost as much as $1 trillion. In fact, at a cost exceeding $3,500 per taxpayer, the President’s income-driven repayment plan and mass cancellation represent the most expensive executive actions in American history, period.
“These illegal actions also come at a time of rip-roaring inflation as Democrats’ reckless spending sprees push our economy to the precipice of recession. The President’s debt transfer plan alone could increase inflation by as much as 27 basis points, making it even harder for families to put food on the table and gas in their car. With our national debt quickly approaching $32 trillion, a bailout for graduate students and high-income households is the last thing we need on our nation’s credit card. Our economy is a debt-fueled balloon waiting to pop, and this plan could be the proverbial needle.
“With all this spending, one would, at the very least, expect the broken student loan program to be repaired. Yet, even if the President is able to move forward with his debt transfer plan, we will be right back to $1.6 trillion in outstanding debt in less than six years. Why? Because colleges will increase their tuition and force students to borrow even more because they know taxpayers will foot the bill.
“The problems that plague postsecondary education cannot be solved by one-time debt jubilees. Solutions require hard work. Specifically, it means addressing the lack of accountability for the hundreds of billions of dollars that flow to colleges and universities that charge far too much for degrees with little or no financial value and reforming our student loan program which Democrats are dead set on running into the ground.
“With that, I look forward to today’s markup and I urge passage of H.J. Res. 45.”