(Washington, D.C.) – Congressman Glenn Grothman (WI-06) has introduced the Fairness for Responsible Borrowers Act to prohibit the Biden Administration from abusing its authority by canceling student loan debt. This bill has 13 cosponsors.
“At a time when inflation is crushing the American people, President Biden is poised to add even more to our national debt by unilaterally determining the future of student loan debt from the Oval office, overriding Congress,” said Grothman. “The President’s insistence on forgiving loans is a troubling sign that he is ready to once again abuse his power to score political points.
“Broad student loan forgiveness is particularly insulting to Americans who paid their loans or never attended college, and they deserve an explanation.
“Debt cannot be erased. Someone always must pay. In this case, the burden would be transferred to the Americans taxpayers, the majority of which never took out loans or have paid them back in full. Why would President Biden send a message to the world that America rewards financial irresponsibility?
“As an alternative to four-year university, I’ve long promoted apprenticeships and career and technical education, which offer job security, high income, and less debt. I strongly urge the White House to join me in emphasizing different educational paths to assist students in making the most responsible decision for a financially sound future.
“The Executive Branch lacks the authority to unilaterally forgive federal student loan debt, but President Biden has already shown that he has no qualms about issuing orders outside of his purview. The Fairness for Responsible Borrowers Act will ensure that the American public is protected from the inevitable monetary consequences of a backward policy issued on unstable ground during an already tumultuous time.”
President Biden purports he has the power to make a sweeping declaration that student loans will be forgiven, however, many legal scholars say he does not. The Fairness for Responsible Borrowers Act will clarify that the Biden Administration does not have the authority to unilaterally forgive student loans. This will save Americans from a President that is willing to add hundreds of billions of dollars to the national debt, adding to inflation, and shovel taxpayer dollars into the pockets of lawyers to fight for the dreams of the extreme left-wing of the Democrat party in court.
If President Biden were to sign off $10,000 in student loan forgiveness, the Committee for a Responsible Budget estimates the total cost will be $250 billion.
Last year, President Biden put in place an eviction moratorium to block landlords from evicting tenants in areas with high rates of COVID-19 transmission, but the order was struck down by the Supreme Court. Prior to the Court ruling, President Biden admitted “it was not likely to pass constitutional muster”. Much like the eviction moratorium, President Biden is willing to convolute the rights of the Executive Branch under the Constitution for a political victory.
Notably, student loan forgiveness would disproportionately benefit high-income earners over low-income Americans. According to the Education Data Initiative, 65 percent of all student loan debt is held by Americans with higher-than-average income compared to the lowest-income households who hold just 12 percent. This is backed up in their analysis, which shows relief will be greatest for higher-income Americans based on their debt-to-income ratios.
This bill is cosponsored by Congresswomen Claudia Tenney (NY-22), Mary Miller (IL-15), Beth Van Duyne (TX-24), and Congressmen Doug LaMalfa (CA-01), Tom McClintock (CA-04), Ken Buck (CO-04), Matt Rosendale (MT-AL), Andrew Clyde (GA-09), Barry Moore (AL-02), Andy Harris (MD-01) Louie Gohmert (TX-01), Richard Hudson (NC-08), and David Rouzer (NC-07).
In May, Grothman led 22 of his colleagues on a letter to President Biden warning of the dire economic consequences of widespread student loan forgiveness.