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Foxx, Cassidy Lead Bicameral Letter Urging Biden Administration to Withdraw Latest $147 Billion Student Loan Transfer Scheme

WASHINGTON – Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) and Senate Health, Education, Labor and Pensions Committee Ranking Member Bill Cassidy (R-LA) led 129 Members of Congress in sending a bicameral letter to Department of Education Secretary Miguel Cardona urging the Department to withdraw its latest attempt to transfer student loan debt onto American taxpayers. The Department’s proposed rule will cost hard-working Americans an additional $147 billion and bring the total student loan debt transferred to taxpayers to as much as $1 trillion.
In the letter, the Members write: “The latest Notice of Proposed Rule Making (NPRM) proposed by your Department of Education (Department) on April 17, 2024, represents the latest in a string of reckless attempts to transfer as much as $1 trillion of student loan debt from those who willingly borrowed to those who did not or have already repaid their loans. We strongly urge you to withdraw it. … This is even broader than the Department’s first attempt: at an estimated price tag of $147 billion, taxpayers are being forced to take on the debt of nearly 28 million borrowers.”
The Members continue: “In addition to the fiscally irresponsible nature of this backdoor attempt to enact ‘free’ college, the administration continues to use borrowers as political pawns knowing full well these proposed actions are illegal. The Supreme Court has made it abundantly clear that there is zero authority to write-off federal student loans en masse last June when the Department’s ‘Plan A’ was ruled unconstitutional. … ‘Plan B’ hinges on creating these extensive regulations based on scant statutory text written in 1965. … This statute has no history of broad use by any previous Secretary and was previously deemed by this administration as less likely to hold up in court than ‘Plan A.’”

The letter concludes: “Instead of exacerbating the problems of inflated college costs and low-value degrees, we urge you to withdraw this NPRM and work with Congress. It is past time that we fix our nation’s broken higher education financing system.”
The House signatories include: Reps. Allen, Armstrong, Babin, Bacon, Balderson, Banks, Barr, Bean, Bergman, Bice, Boebert, Bost, Burlison, Buddy Carter, Clyde, Comer, Crenshaw, DesJarlais, D'Esposito, Diaz-Balart, Donalds, Duncan, Dunn, Edwards, Estes, Ezell, Fallon, Ferguson, Finstad, Fitzgerald, Fleischmann, Flood, Franklin, Good, Sam Graves, Mark Green, Grothman, Guest, Guthrie, Hageman, Harris, Houchin, Hudson, James, Dusty Johnson, Mike Kelly, Trent Kelly, Langworthy, LaTurner, Lesko, Letlow, Loudermilk, McClain, McCormick, McMorris Rogers, Mary Miller, Max Miller, Moolenaar, Mooney, Norman, Ogles, Owens, Palmer, Pfluger, Posey, Reschenthaler, Mike Rogers, Rose, Rutherford, Austin Scott, Self, Sessions, Adrian Smith, Smucker, Steel, Stefanik, Strong, Tenney, Thompson, Tiffany, Timmons, Van Duyne, Van Orden, Walberg, Weber, Webster, Roger Williams, Wilson, Wittman, Womack, and Yakym.

The Senate signatories include: Sens. Barrasso, Blackburn, Britt, Braun, Budd, Capito, Cornyn, Cotton, Cramer, Crapo, Cruz, Daines, Ernst, Fischer, Graham, Grassley, Hawley, Hoeven, Hyde-Smith, Johnson, Kennedy, Lankford, Lummis, Marshall, McConnell, Moran, Mullin, Ricketts, Risch, Romney, Rounds, Schmitt, Tim Scott, Sullivan, Thune, Tillis, Tuberville, Wicker, and Young.
To read the full letter, click here.


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