June 15 (UPI) — Senate Republicans have introduced their own student loan reform package to tackle student debt and rein-in “skyrocketing” higher education costs.
The Lowering Education Costs and Debt Act, a package of five bills, would provide what the six senators call a “responsible alternative” to the Biden administration’s student debt transfer proposal.
Sen. Chuck Grassley, R-Iowa, joined Sens. Bill Cassidy, R-La.; Steve Daines, R-Mont.; John Cornyn, R-Texas; Tommy Tuberville, R-Ala.; and Tim Scott, R-S.C., on Wednesday to introduce the new package.
Grassley’s part of the package, called Understanding the True Cost of College Act, would create a universal financial aid offer form to allow students to compare financial aid packages. The Government Accountability Office found that more than 90% of college financial aid offer letters understate the price students would pay.
“Iowans understand that when you take out a loan, you have a responsibility to pay it back. The Biden administration’s plan to forgive student debt would only transfer the burden of repayment onto American taxpayers, costing them billions of dollars. That’s an outrageous approach to the student debt crisis,” Grassley said.
“Our legislative package takes a proactive approach by informing students and their families of their best options, and I’m proud to see my legislation included in the package,” Grassley added.
Other bills in the Lowering Education Costs and Debt Act would reform the college data reporting system to ensure students have information on job prospects and outcomes for educational institutions through the College Transparency Act.
The Streamlining Accountability and Value in Education — or SAVE — for Students Act would simplify repayment options for borrowers once they graduate.
And the Graduate Opportunity and Affordable Loans — or GOAL — Act would end inflationary Graduate PLUS loans and set lower loan limits to protect students from over-borrowing.
The package also includes Daines’ Informed Borrowing Act, which would require loan counseling for clear information about the length of a student loan, the monthly payment and how much money the average graduate makes after attending the school and program of choice.
Last week, President Joe Biden vetoed a bill to preserve his program that would cancel student debt and grant $10,000 to $20,000 in student loan forgiveness to 40 million borrowers. The U.S. Supreme Court is expected to rule any day on the legality of Biden’s plan.
“Biden’s student loan transfer plan is like closing the barn door after the horses are out,” Grassley tweeted Wednesday. “We need proactive solutions for students.”
“Our federal higher education financing system contributes more to the problem than the solution. Colleges and universities using the availability of federal loans to increase their tuitions have left too many students drowning in debt without a path for success,” said Cassidy.
“Unlike President Biden’s student loan schemes, this plan addresses the root causes of the student debt crisis,” Cassidy added. “It puts downward pressure on tuition and empowers students to make the educational decisions that put them on track to academically and financially succeed.”
