Press Releases

Biden’s game of Monopoly: Student loans
By Rep. Virginia Foxx
June 12, 2023

For years, militant progressives have blamed student loan servicers, for-profit schools, and virtually anyone else they can think of other than themselves for the failures of postsecondary education and the system they created. Taxpayers and borrowers have seen enough failures from this approach to know better, and the public is no longer willing to entertain Democrats’ lack of personal accountability.

The administration in charge holds the hammer, and when it misses, it has no one to blame, and the available evidence clearly suggests that the political party of, by, and for unfettered bureaucracy is hopelessly incompetent.
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Mr. Biden and his subordinates extended the pandemic-era student loan repayment freeze half a dozen times since taking office. In every one of those instances, the technocrats in Washington pledged that it was the final extension.

Families with federal student loans panicked over how to prepare properly for renewing their monthly obligations because they were kept in the dark by vacillating decision-makers in Washington. Once it became clear that the Department of Education’s attempts to do its job were embarrassingly inadequate, Mr. Biden issued another extension at the eleventh hour and notified Congress, borrowers and servicers by press release.
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With the promise of an imminent end to the payment moratorium, federally contracted student loan servicers hired hundreds of new staff. They spent countless dollars updating systems and preparing for the monumental task of returning 40 million borrowers to repayment, only for Democrats to change their minds.

The results are workers out of jobs, borrowers unable to get the help they need and hardworking taxpayers on the hook for another $5 billion every month. This ineptitude continues.
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Other examples of the Democratic Party’s student loan mismanagement abound. Illegal waiver programs and mass loan write-offs are announced without any notice or guidance on how they will work. 
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It is clear the Department of Education’s tool of choice to “solve” problems is no longer a hammer but a wrecking ball. It is time to put a new construction crew in charge to restore competent management and respect for the rule of law.

Read Chairwoman Foxx’s full op-ed here.