Today, House Republicans will bring H.J. Res. 88 to the floor, expressing our disapproval of Biden’s Savings on a Valuable Education (SAVE) plan, which would drastically alter the Income-Driven Repayment (IDR) program and make America’s student loan program even more expensive for taxpayers by setting the precedent of loans not needing to be repaid. This legislation nullifies the Biden Administration’s radical IDR regulation and stops the unilateral actions from Biden, which would cost everyday Americans hundreds of billions of dollars.
President Biden is once again attempting to circumvent the rule of law and leave hardworking Americans who never went to college with a $559 billion bill for another of his radical Far Left student loan schemes.
MAKE NO MISTAKE: House Republicans are committed to reining in Biden’s reckless spending that burdens taxpayers and circumvents established laws. House Republicans will continue to stand together in safeguarding against these costly and radical proposals, ensuring hardworking Americans don’t have to foot the bill for the liberal elite.
FACTS ABOUT BIDEN’S LATEST STUDENT LOAN SCHEME: (Courtesy of the Committee on Education & the Workforce Republicans):
On June 30, 2023, hours after the Supreme Court ruled Biden’s student loan scheme unconstitutional, the Education Department (ED) unveiled the Savings on a Valuable Education (SAVE) plan. It will drastically alter the Income-Driven Repayment (IDR) program, which lets borrowers pay back loans based on how much they earn.
IDR was rarely used until Democrats allowed the federal government to take over the student loan market and expanded taxpayer subsidies provided under the program, leading to nearly half of loans being repaid under an IDR plan.
Outside experts estimate Biden’s SAVE scheme will cost as much as $559 billion – making it the most expensive regulation in history and more than doubling the cost of the IDR program.
Specifically, the SAVE scheme:
Expands the share of borrowers’ exempted income (150 percent to 225 percent of the federal poverty line) that is used to calculate their monthly payments.
Cuts in half the amount that borrowers have to pay each month from 10 percent of their income to five percent.
Forgives loan balances as early as 10 years instead of 20 or 25 years.
This plan will exacerbate the problems of rising college costs and excessive borrowing.
Future borrowers will take on debt expecting forgiveness, encouraging schools to raise tuition rates and forcing future generations to pay the price.
Policy experts agree that 80 percent of students will never fully repay their loans under this proposal, leaving taxpayers – even if they never went to college – to foot the bill.
In some instances, graduate students’ loans will be subsidized more than low-income households receiving federal housing assistance or Medicare benefits.
Only Congress has the power of the purse. Congress did not and would not authorize the Secretary to write off half of the $1.6 trillion student loan portfolio with the stroke of a pen.