Foxx Votes No on Bungled Joint Consolidation Bill
WASHINGTON, D.C., September 21, 2022
Today, the House passed S. 1098, the Joint Consolidation Loan Separation Act, which delays support for borrowers, including victims of abuse, who have joint consolidation loans and need to separate their loans immediately. The bill also cedes more control to the Education Secretary and fails to protect taxpayers.
Rep. Virginia Foxx (R-NC), Republican Leader of the Education and Labor Committee, said on the House floor prior to the vote:
“I urge my colleagues to consider the solutions Republicans have put on the table. Borrowers wanting out of joint consolidated loans should have the opportunity to separate, but the method we use to get this done is important.
“S. 1098, the Joint Consolidation Loan Separation Act will take the Department 12 to 18 months to implement—far too long for some borrowers who are in urgent need of help. This legislation could also backfire on the very borrowers we are all working to help.
“Additionally, this bill’s sloppy and vague language could pave the way for even more federal power grabs over the student loan system—and given what we’ve seen from this administration—we cannot open any doors to further student loan debt schemes.
“Bottom line, S. 1098 delays support for borrowers who need assistance immediately, cedes more control to the Education Secretary, and fails to protect the borrowers and taxpayers. I urge my colleagues to oppose this legislation.”
NOTE: Foxx introduced the Simplified Joint Consolidation Separation Act (H.R. 8909), a commonsense alternative to S. 1098, which will establish a more efficient process for separating joint consolidation loans to ensure timely relief for borrowers.
To read the bill, click here.
To read the bill summary, click here.
To read the fact sheet on the bill, click here.