SC Missouri News

U.S. Senators Roger Wicker (R-Miss.) and Cindy Hyde-Smith (R-Miss.), along with U.S. Representatives Trent Kelly (R-Miss.), Michael Guest (R-Miss.), and Mike Ezell (R-Miss.), have voiced their opposition to the Biden administration’s recent proposal to transfer student loan debt to American taxpayers.

The Mississippi lawmakers joined 39 Senators and 90 House Members in signing a letter urging the withdrawal of the U.S. Department of Education’s proposed student loan transfer rule, which is projected to cost $147 billion, increasing 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. We strongly urge you to withdraw it,” wrote the lawmakers.

The letter criticizes the Biden administration for prioritizing student loan forgiveness schemes while failing to implement the new Free Application for Federal Student Aid (FAFSA) program properly. The delays have reportedly prevented students and families from accessing essential financial aid information.

“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,” stated the lawmakers.

They further urged: “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.”

The initiative was led by U.S. Senator Bill Cassidy, M.D. (R-La.), ranking member of the Senate Health, Education, Labor, and Pensions Committee, and U.S. Representative Virginia Foxx (R-N.C.), chairwoman of the House Education and Workforce Committee.

In their letter addressed to Secretary Cardona, they stated: "The Biden administration describes this regulation as 'targeted relief,' yet the Department’s own estimates show otherwise." They noted that at an estimated cost of $147 billion, taxpayers would assume responsibility for nearly 28 million borrowers' debts. Additionally, outside estimates indicate that some beneficiaries under certain provisions could have typical incomes exceeding $300,000.

The lawmakers also expressed concern over another aspect of "Plan B," which involves regulations allowing loan cancellation based on "hardship." According to budget experts cited in their letter, this could increase costs by nearly $750 billion—almost double that of "Plan A."

While drafting these proposals aimed at benefiting college attendees, they argued that essential resources were diverted from effectively implementing FAFSA—a critical tool for current and prospective students seeking federal financial aid.

"Failure to make FAFSA available on time will have life-long consequences for many young Americans," they warned. As evidence, they pointed out a significant decline in FAFSA completion among high school seniors.