Indy Standard

U.S. Senator Todd Young (R-Ind.) has joined a bicameral letter urging the Department of Education to withdraw its latest proposal to transfer student loan debt onto American taxpayers. The proposed rule, according to lawmakers, will cost Americans an additional $147 billion and could bring the total student loan debt transferred to taxpayers up to $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.

In addition to Senator Young, Senators Bill Cassidy (R-La.), 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-Wis.), John Kennedy (R-La.), James Lankford (R-Okla.), Cynthia Lummis(R-Wyo.), Roger Marshall(R-Kan.). Mitch McConnell(R-Ky.). Jerry Moran(R-Kan.). Markwayne Mullin(R-Okla.). Pete Ricketts(R-Neb.). Jim Risch(R-Idaho). Mitt Romney(R-Utah). Mike Rounds(R-S.D.). Eric Schmitt(R-Mo.). Tim Scott(R-S.C.). Dan Sullivan(Ark.) John Thune(S.D.) Thom Tillis(N.C.) Tommy Tuberville(Ala.) Roger Wicker(Miss.) also signed the letter. The senators are joined by over 90 lawmakers from the U.S. House of Representatives.

The Biden Administration's prioritization of enacting student loan schemes has faced criticism for failing to properly implement the new Free Application for Federal Student Aid program. Continued delays prevent students and families from accessing crucial financial aid information needed for choosing affordable colleges.

The full letter reads:

Dear Secretary Cardona:

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 those who did not or have already repaid their loans We strongly urge you withdraw it

The Biden administration describes this regulation “targeted relief” yet Department’s own estimates show opposite This even broader than first attempt at estimated price tag $147 billion taxpayers being forced take on debt nearly 28 million borrowers Moreover while likely does not wish highlight how much proposal would help wealthy outside estimates show eligible “relief” under certain provisions typical income over $300000 Unfortunately did include analysis distributional effect regulations

addition fiscally irresponsible nature backdoor attempt enact “free” college administration continues use borrowers political pawns knowing full well proposed actions illegal Supreme Court made abundantly clear zero authority write-off federal student loans en masse last June when “Plan A” ruled unconstitutional Further regulation only part Plan B notes long-anticipated regulation cancel loans facing hardship broad term defined NPRM grant full authority cancel any pleases still forthcoming According budget experts additional changes bring total cost nearly $750 billion almost double cost Plan B hinges creating extensive regulations based scant statutory text written 1965 text describes how then Commissioner Education Health Welfare enforce pay compromise waive release any right title claim lien demand however acquired including equity right redemption under Federal Loan Insurance Program certain drafters through last reauthorization contemplate words used cancel massive portions balances statute history broad use previous Secretary deemed less likely hold court than While dedicated resources needed draft proposal benefit able attend simultaneously failed competently implement FAFSA simple form helps neediest current prospective attendees understand available Failure make available prospective time life-long consequences many young Americans know March completion seniors high school down percent Those file likely attend next year maybe never Instead exacerbating problems inflated costs low-value degrees urge withdraw work Congress past time fix broken higher education financing system

Sincerely,