Borrowers, Taxpayers, and Servicers are Suffering from President Biden’s Negligent Disregard on Student Loan Repayments
WASHINGTON, D.C., January 20, 2022
Today, Education and Labor Committee Republican Leader Virginia Foxx (R-NC) hosted a roundtable discussion with key stakeholders on the importance of restarting federal student loan repayments. Committee Members discussed the operational difficulties and implications for borrowers that come with continued extensions of student loan repayment pauses with representatives from the National Association of Student Financial Aid Administrators and the Student Loan Servicing Alliance.
Following the meeting, Republican Leader Foxx said: “During today’s briefing, Republican Members of the Education and Labor Committee expressed serious concerns about the Biden administration’s third extension of the student loan repayment pause, which will bring the total cost to taxpayers to over $150 billion. The Biden administration is neglecting its fiduciary responsibility to the American people to satisfy the progressive wing of the Democrat party—this political theater is unacceptable.
“The Biden administration owes Congress and the American people a plan that will address challenges facing student loan servicing companies and borrower confusion, and provide a clear timeline for when student loan payments will resume. The Biden administration has had a year to come up with a plan, it is time to stop stalling.
“President Biden’s latest extension is a troubling trend toward blanket student loan forgiveness, which would be a massive mistake, with major consequences for borrowers and taxpayers.”