WASHINGTON – Today, U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, released a statement following a report from the nonpartisan Penn Wharton Budget Model (PWBM) that President Biden’s reckless income-driven repayment (IDR) rule will cost American taxpayers as much as $558.8 billion over the next ten years. Additionally, the report found that the IDR rule will incentivize community college students to collectively begin borrowing billions of dollars per year due to the expectation that they will not have to pay back their debt.
Under the IDR rule, a majority of bachelor’s degree student loan borrowers will not have to pay back even the principal on their loans. This latest figure is more than double the previous estimate from the Congressional Budget Office (CBO), which reported the proposed IDR rule would cost taxpayers $276 billion.
“Make no mistake, Biden’s newest student loan scheme only transfers the burden from those who willingly took out loans to Americans who never attended college or who already fulfilled their commitment to pay off their loans,” said Dr. Cassidy. “This IDR rule is as irresponsible as it is unfair.”
On June 30th, President Biden announced the final IDR rule following the U.S. Supreme Court ruling to block President Biden’s illegal student debt scheme that attempted to shift hundreds of billions of dollars in student loan debt onto taxpayers.
The IDR rule:
Impacts incentivizing debt:
Last month, Cassidy and U.S. Senators Chuck Grassley (R-IA), John Cornyn (R-TX), Tommy Tuberville (R-AL), and Tim Scott (R-SC) unveiled their groundbreaking Lowering Education Costs and Debt Act, a package of five bills aimed at directly addressing the issues driving the skyrocketing cost of higher education and the increasing amounts of debt students take on to attend school. Later that day, the senators held a press conference to discuss the legislation.