Votes sought at taxpayers’ expense, say Foxx, Cassidy: Report

A recent federal report indicates that only 40% of student loan borrowers are currently making payments, prompting criticism from congressional leaders in North Carolina and Louisiana. Chairwoman Virginia Foxx and Senator Bill Cassidy argue that the findings highlight the Biden administration's attempts to secure votes at taxpayers' expense. They noted that in addition to the January figures, approximately 8 million borrowers were placed into forbearance in July, raising concerns about the administration's handling of student loan repayment. Foxx criticized the administration for fostering a culture of non-repayment among borrowers, suggesting that years of "false hope" and "illegal schemes" have led many to believe they are not responsible for repaying their loans. She called for a shift in focus towards genuine solutions, such as the College Cost Reduction Act, which aims to hold educational institutions accountable for high tuition costs that contribute to student debt. Cassidy echoed these sentiments, accusing the Biden administration of misleading borrowers regarding debt cancellation. He emphasized that borrowers are accumulating interest on their loans while waiting for promises of widespread debt relief that he claims the administration cannot deliver. He argued that the burden of unpaid loans is being unfairly shifted onto those who either chose not to attend college or have already repaid their education. The report also revealed that 30% of borrowers, representing about $290 billion in loans, are overdue on payments. Furthermore, the Biden administration's policy allowing borrowers to miss payments without penalty for up to a year has raised concerns about its timing, as it may defer consequences until after the upcoming election.