WASHINGTON - Today, Rep. Lisa McClain (R-MI) and House Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) introduced a Congressional Review Act (CRA) resolution to overturn President Biden’s reckless income-driven repayment (IDR) rule-known as “Savings on a Valuable Education (SAVE)" plan. Experts estimate that the SAVE scheme could leave taxpayers on the hook for as much as $559 billion, making it the costliest regulation in U.S. history.
On the introduction of the CRA resolution, Foxx and McClain made the following statement: “The only difference between President Biden and a snake oil salesman is a title. Biden’s administration knows what it’s doing is illegal but it’s pushing forward anyway, promoting its SAVE scheme as a solution to America’s broken student loan system. In reality, the SAVE scheme is a desperate effort to curry favor and buy votes ahead of the next election.
“This scheme will leave mountains of debt at the feet of taxpayers while absolving millions of borrowers of their loans. What’s worse is that future borrowers will take on loans expecting forgiveness, which in turn encourages schools to raise tuition rates.
“We need to tackle the challenges of the federal student loan system head on, not with gimmicks and false promises. Republicans have real solutions, such as the Federal Assistance to Initiate Repayment (FAIR) Act. This bill ends the Biden administration’s student loan scam, simplifies the repayment process, and ensures a smooth transition back to repayment."
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 or Medicare benefits.
* Guarantees that up to 80 percent of undergraduate student loan borrowers will never repay their loans fully.
U.S. Senators Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor and Pensions (HELP) Committee, John Thune (R-SD), and John Cornyn (R-TX), introduced the companion CRA resolution in the U.S. Senate.
Background:
On June 15, Higher Education and Workforce Development Subcommittee Chairman Burgess Owens (R-UT), Rep. Lisa McClain (R-MI), and House Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) introduced H.R. 4144, the Federal Assistance to Initiate Repayment (FAIR) Act, which takes a critical step towards addressing the failures of President Biden’s radical free college agenda by providing a fair, responsible path back to repayment for 40 million borrowers.