Central South Dakota News

WASHINGTON – U.S. Senator Mike Rounds (R-S.D.), Senator Bill Cassidy (R-La.), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, and Representative Virginia Foxx (R-N.C.), chairwoman of the House Education and the Workforce Committee, recently sent a letter urging the Department of Education to withdraw its latest student loan forgiveness plan. This 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.

“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,” wrote the lawmakers. “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.”

“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,” continued the lawmakers.

Rounds, Cassidy, and Foxx are joined by U.S. Senators John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Katie Britt (R-Ala.), Mike Braun (R-Ind.), Ted Budd (R-N.C.), Shelley Moore Capito (R-W.Va.), John Cornyn (R-Texas), Tom Cotton (R-Ark.), Mike Crapo (R-Idaho), Kevin Cramer (R-N.D.), Ted Cruz (R-Texas), Steve Daines (R-Mont.), Joni Ernst (R-Iowa), Deb Fischer (R-Neb.), Lindsey Graham (R-S.C.), Chuck Grassley (R-Iowa), Josh Hawley (R-Mo.), John Hoeven (R-N.D.), Cindy Hyde-Smith (R-Miss.), Ron Johnson (R-Wisc.), John Kennedy (R-La.), James Lankford (R-Okla.), Cynthia Lummis(R-Wyo.) Roger Marshall M.D., Mitch McConnell(R-Ky.) Jerry Moran(Kansas) Markwayne Mullin(Okla.) Pete Ricketts(Neb.) Jim Risch(Idaho) Mitt Romney(Utah) Eric Schmitt(Mo.) Tim Scott(S.C.) Dan Sullivan(Alaska) John Thune(S.D.) Thom Tillis(N.C.) Tommy Tuberville(Ala.) Roger Wicker(Mississippi). They are also joined by 90 lawmakers from the U.S. House of Representatives.

Read the full letter HERE or below.

+++

Dear Secretary Cardona:

The latest Notice of Proposed Rule Making(NPRM) proposed by your Department on April 17th represents a reckless attempt to transfer up to $1 trillion in student loan debt from borrowers who willingly took out loans onto taxpayers who either did not borrow or have already repaid their loans. We strongly urge you to withdraw it.

The Biden administration describes this regulation as “targeted relief,” yet departmental estimates show otherwise. At an estimated price tag of $147 billion, taxpayers would be forced to take on nearly 28 million borrowers' debts. Moreover outside estimates indicate that eligible borrowers under certain provisions in this proposal typically earn over $300000 annually. Unfortunately departmental analysis on distributional effects is missing.

This backdoor attempt at "free" college remains fiscally irresponsible while using borrowers as political pawns despite knowing these actions are illegal following last June's Supreme Court ruling deeming "Plan A" unconstitutional for lacking authority for mass federal student loan write-offs.

Further this regulation forms part only part “Plan B.” The long-anticipated regulation aimed at canceling loans for those facing “hardship”—broadly defined under NPRM granting full cancellation authority—is still forthcoming raising total Plan B costs near $750 billion almost double Plan A's expense.

“Plan B” relies on scant statutory text from 1965 describing how then Commissioner could manage Federal Loan Insurance Program rights claims waivers releases etc..Drafters through last reauthorization likely never intended such massive cancellations via statute unused broadly before deemed less court viable than Plan A itself.

While drafting resources benefitting existing college attendees were allocated FAFSA implementation failed simultaneously impacting needy prospective/current students seeking federal aid.Failure timely make FAFSA available harms young Americans' futures.March29 data shows high school seniors' completion down40%.Non-filers likely skip next year's college potentially indefinitely

Instead exacerbating inflated costs low-value degrees we urge withdrawing NPRM collaborating Congress fixing broken higher education financing system urgently