When I enrolled in community college at sixteen and decided that I hoped to be a doctor, I knew that my education would be costly and that student loans would be required. However, through my service in the United States Army, and with a balanced budget, I was able to pay back my student loans in a timely manner.
Student loans allow millions of students across the country to receive a college education to pursue their dream careers. However, when one takes out a student loan, they have a responsibility to pay the loan back, just like a mortgage or bank loan. Most people who take out a loan to pay for college though do not know the full extent and responsibilities of the loan and are left in with an immense amount of debt.
That is why I introduced the Know Before You Owe Federal Student Loan Act of 2022, which would require universities to provide loan counseling to students seeking federal loans. This bill would help ensure students are equipped to make the financial commitment. Additionally, it would provide students with ways to lower their student loans, such as scholarships and work-studies.
President Biden’s decision to forgive student loans does nothing to alleviate the problem of college tuition and fees increasing exponentially. This decision is irresponsible, it's unfair, and undercuts students who work to afford tuition and parents who for years saved money to offer their children the opportunity of a college education.
This is a debt transfer and places the burden of repaying loans on those who chose not to pursue a college education and on those who are responsibly paying back their own debt. The Biden administration originally ignored requests from the media about how much this plan would cost taxpayers saying that it would not raise taxes. However, last week the Department of Education released a statement that this decision will cost taxpayers $30 billion annually over the next decade. These are funds that could be used to secure our southern border and keep Americans safe, instead hardworking Iowans are forced to pay more in taxes.
I also joined Ranking Member of the U.S. House Education and Labor Committee, Virginia Foxx (NC-5) in a letter to the U.S. Government Accountability Office to review the action taken by the administration to determine if this action is legal. Any action that costs the taxpayers an estimated $469 billion to $519 billion requires a formal submission to Congress.
Instead of doing a one-time cancelation that only affects certain groups, the Biden administration should prioritize lowering the cost of college and expanding resources for those taking out loans to fully understand the commitment.
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