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Chairwoman Foxx on Biden Transferring Billions in Student Loan Debt to Taxpayers

Today, Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) issued the following statement in response to the Biden administration transferring $1.2 billion in student loan debt to taxpayers as President Biden continues to implement his radical income-driven repayment (IDR) rule—known as “Savings on a Valuable Education (SAVE)” plan:
“If President Biden spent half as much time working to address the root causes of our broken student loan system as he does peddling his illegal free college agenda, college costs would be lower, the student loan repayment process would be simpler, and students and families would be able to fill out the FAFSA.

“Unfortunately, Biden believes that more government dependence means more votes come election day—and as a result—has focused his time and energy on harmful initiatives to bolster his ratings.

“Don’t be fooled by this administration’s so-called free college agenda. It means less money in the pockets of hardworking taxpayers, more debt, and a continuing decline of an already failing student loan system.”

Biden’s SAVE scheme:

  • Is estimated to cost as much as $559 billion – making it the most expensive regulation in history and more than doubling the cost of the current IDR program.
  • Exacerbates the problems of rising college costs and excessive borrowing.
  • Subsidizes some graduate students’ loans more than what low-income households receive in federal housing assistance.
  • Guarantees that up to 80 percent of undergraduate student loan borrowers will never repay their loans fully. 

More on Republican solutions to lower college costs:

Last month the Committee passed H.R. 6951, the College Cost Reduction Act. The bill includes bipartisan proposals to tackle widespread concern that the cost of postsecondary education has become insurmountable for too many Americans. This legislation addresses the issues of low completion rates, unaffordable student debt, and the inflated cost of obtaining a college degree. Specifically, H.R. 6951:  

  • Ensures information about costs and return on investment is clear, accessible, and personalized for prospective students and families.
  • Holds institutions financially responsible for overpriced degrees that leave students with unaffordable debt.
  • Provides targeted relief to struggling borrowers rather than blanket bailouts for those who don’t need them.
  • Funds colleges based on student outcomes and lifts excessive regulations that further increase costs to families. 


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