Protecting Taxpayers from Repaying Loans They Didn’t Take Out

Earlier this year, after the Supreme Court rejected their unconstitutional student loan giveaway, the Biden Administration introduced a new income driven repayment plan for student loans called Saving on Valuable Education (SAVE) – a backdoor attempt to provide free college through executive overreach.

Under this irresponsible plan, most undergraduate borrowers with typical debt levels and almost 90 percent with certificates or degrees would get at least some of their loans forgiven; 91 percent of new student debt would be eligible for reduced payments and eventual "forgiveness."

By allowing borrowers to not have to pay any money back or drastically cutting the amount they do have to repay, Biden’s SAVE would recklessly incentivize college students to borrow billions of dollars each year with the expectation that they will not have to pay off their debt. Additionally, the Biden plan does nothing to address the soaring cost of higher education and, if anything, incentivizes colleges and universities to continue their unsustainable price increases.

"Forgiving" loans or allowing borrowers to not pay back the money they used doesn’t make the owed money go away – it shifts the burden of repayment from the person who took the loan and made a commitment to American taxpayers who have already paid their loans or didn’t take one out to begin with. 

Biden’s unfair income driven repayment plan is estimated to cost taxpayers up to $559 billion—making it the most expensive regulation in history. American taxpayers shouldn’t have to bear the consequences of Biden undermining a concept as simple as ‘you should pay back the money you borrow.’

Rep. Lisa McClain’s legislation, H.J. Res. 88, prohibits the Department of Education’s radical rule titled Improving Income Driven Repayment for the William D. Ford Federal Direct Loan Program and the Federal Family Education Loan (FFEL) Program which creates a new income-driven repayment plan that would force American taxpayers to repay student loan debt that doesn't belong to them.

House Republicans won’t stand by as the Biden Administration continues their unjust and illegal pursuit of transferring student debt to hard working Americans for political brownie points.