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Republican Senators Introduce Bill to Stop Student Debt Cancellation

By Allie Arcese, Director of Communications

By Allie Arcese, NASFAA Managing Editor

While the White House and lawmakers continue to mull the idea of student loan forgiveness, a group of Republican senators led by Richard Burr (R-N.C.), ranking member of the chamber's education committee, on Wednesday introduced a bill that would prohibit President Joe Biden from canceling any amount of student loan debt. 

Burr and his colleagues — including Sens. Mitt Romney of Utah, Tim Scott of South Carolina, Bill Cassidy of Louisiana, and Thom Tillis of North Carolina — claim wiping out the debts of millions of student loan borrowers would increase inflation, incentivize institutions to increase tuition, add to the national debt, and worsen inequality by primarily benefiting wealthier individuals. 

Their bill, dubbed the Student Loan Accountability Act, would prevent the Biden administration from forgiving any amount of outstanding federal student loans — with exceptions for options already in place through Public Service Loan Forgiveness or income-driven repayment plans, among others. 

"Working Americans are struggling to afford essentials like gas and groceries under the worst inflation in 40 years, but that won't stop the Biden Administration from pushing more inflationary policies that primarily benefit the highest earner," Burr said in a press release. "Taxpayers who did not attend higher education or paid off their student loans responsibly should not be footing the bill for those who didn't. Not only is that patently unfair, it doesn't solve the root problem."

The Biden administration is facing pressure on all fronts as progressives urge the president to completely erase outstanding federal student loan debt, and the White House weighs what options it has to take any action on debt relief outside of the current moratorium on loan payments and interest accrual during the pandemic. 

It's unclear when any forgiveness may be announced, or how it would be structured. The White House is also reportedly considering implementing income caps along with any potential forgiveness — a move that would prove logistically difficult due to current data-sharing restrictions between federal agencies. 

Just this week, NASFAA released a white paper examining the current shortcomings of the student loan system, including in repayment, servicing, and default, and argued that loan forgiveness absent any comprehensive reform to the entire system — though welcome to borrowers — would be incomplete. The paper provides more than 30 targeted, systemic policy solutions to improve student loan servicing practices, rethink the terms and conditions of student loan repayment, increase institutional and program accountability, and reform student loan default.

"As the president and Congress debate and consider widespread debt forgiveness, we call attention to the noticeable absence and urgently needed policy reforms that will prevent borrowers from being in this same exact position in the future," said NASFAA President and CEO Justin Draeger.

 

Publication Date: 5/20/2022


Darren C | 5/20/2022 10:15:50 AM

The idea that a form of loan forgiveness will solve anything is absurd. Both sides are always playing politics for votes, however anyone being honest knows the Government has no interest in real reform and systematic change to the student loan nightmare they've created. Where is the accountability? If anyone thinks magically making more debt disappear won't have additional consequences, I believe you're missing something here. We've seen cost of living inflate, gas prices go through the roof for no good reason and now the tax payer money that paid for people's education will just go away? Stop and think before you support something that just feels good emotionally. An issue like this needs to be looked at beyond the political divide, but as we see, it just draws people in and they pick a side. Division at it's finest. An actual solution is probably somewhere in the middle, but no one seems interested in that unfortunately.

Billy B | 5/20/2022 9:18:51 AM

Republicans are doing this because student loan forgiveness is a good political move (as are all things that help normal people) the way the economy moved for the last 30 years have thrown people with large debt into a job market that pays wages that can't pay it off. They wouldn't be trying so hard to prevent it if it wasn't a good decision for Democrats they never do anything except for political reason and will do anything for political reasons.

Julianne L | 5/20/2022 8:16:26 AM

Good for the Republican Senators and is there anywhere I can sign!! Absurd that we should be responsible for people who made choices they couldn't afford and others who still may have struggled made sacrifices and were accountable for their debt.

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