Higher Ed Policy Roundup: Vol. 6 - Issue 7

On Wednesday, Senate Majority Leader Chuck Schumer (D-NY), Senator Elizabeth Warren (D-MA), and Senator Raphael Warnock (D-GA) met with President Joe Biden in an attempt to get Biden to agree to forgive $50,000 in student loans.  Recall that Biden confirmed in recent weeks his desire to cancel some amount of student loan debt, though he has insisted it would not be the $50,000 that progressives have been asking for. The trio have been working to get Biden to consider forgiving a larger amount to help struggling borrowers and incentivize voters ahead of the November midterm elections.

In a letter to President Biden, House Republicans have been working to dissuade the president from forgiving any loan amounts arguing that he lacks the authority to do so. In the letter, House Republicans also underscored their belief that student debt cancelation would punish borrowers who have already paid back their student loans, exacerbate inflation, and disproportionately benefit wealthier borrowers.

How income-targeted student loan forgiveness could invite a disaster.

The Pell Institute’s new report says the student loan equity gap continues to grow.

The following bills have been recently introduced for consideration by the 117th Congress (2021-2022):

S. 4253 – Student Loan Accountability Act [Sen. Mitt Romney (R-UT)] would prohibit certain Executive Branch agencies from taking any new action to cancel the outstanding balances, or portions of balances, of covered loans, outside existing Federal student loan forgiveness programs.

H.R. 7727 – Accountability in Student Loan Data Act [Rep. Katie Porter (D-CA-45)] would improve certain reporting requirements for institutions of higher education for the number of graduates who cannot repay their student loans to prevent schools from artificially deflating the numbers.