Foxx, Stefanik, Banks Announce Responsible Alternative to Biden's Blanket Student Loan Scheme

Press Release

Today, Education and Labor Committee Republican Leader Virginia Foxx (R-NC), House Republican Conference Chair Elise Stefanik (R-NY), and Republican Study Committee Chairman Jim Banks (R-IN) announced they will introduce the Responsible Education Assistance through Loan (REAL) Reforms Act, a bill that offers commonsense and fiscally responsible reforms to benefit students and borrowers in our country's federal student loan system.

On the bill, Reps. Foxx, Stefanik, and Banks said:

"The Biden administration has been engaging in mass student loan forgiveness behind Americans' backs without the authorization of Congress. In total, to date, the President has already forgiven, waived, or canceled at least $217 billion in student loans through the unlawful abuse of his executive pen. Instead of placing the burden of this broken student loan system on the shoulders of American taxpayers, we are introducing this bill to fix the system.

"Our reforms are fiscally responsible, practical solutions to help students and borrowers. This bill provides targeted relief for borrowers in the greatest need and helps Americans who have been excluded from postsecondary education access high-quality short-term programs. This will allow individuals to gain quickly the skills needed to fill in-demand jobs. It rejects broad student loan forgiveness for those earning six-figure salaries and curtails the Department of Education's ability to unilaterally forgive debts. This bill also provides long overdue reforms to graduate student lending and eliminates the expensive and regressive runaway loan forgiveness programs. Lastly, this bill would put a stop to usurious student loan practices by placing a cap on excessive interest for existing borrowers harmed by years of Democrat policies, and protects future borrowers from these predatory practices going forward.

"Unlike Democrats' mass student loan forgiveness scheme, these reforms provide targeted relief to borrowers who need it the most and recognize that not every career path requires a baccalaureate degree.

"The REAL Reforms Act is what responsibility looks like."

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