U.S. Senator Bill Cassidy, the ranking member of the Senate Health, Education, Labor, and Pensions Committee, has commented on the Department of Education’s decision to withdraw its backup student loan plan. The plan was part of the Biden-Harris administration’s effort to address student debt by transferring it onto taxpayers.
Dr. Cassidy stated, “The Biden-Harris administration’s student loan schemes were always a lie,” adding that their withdrawal acknowledges these plans as an attempt to gain political support by shifting financial burdens onto those who either did not attend college or have already paid off their loans.
The withdrawn policies were intended to replace an earlier initiative from the administration that was nullified by the Supreme Court last year. Senator Cassidy had previously spearheaded a Congressional Review Act aimed at overturning this initial policy, which saw bipartisan approval in Congress.
Additionally, another policy under scrutiny is the income-driven repayment scheme that remains active despite ongoing litigation in federal court. This scheme allows many borrowers with bachelor’s degrees to make zero monthly payments without repaying even the principal amount of their loans. According to estimates, this could cost taxpayers up to $559 billion.
