Imagine working extra shifts and making sacrifices to pay off your student loans, only to get stuck with the bill for someone else’s college education—even if they didn’t graduate.
That’s exactly what President Joe Biden has done to American taxpayers. Defying the Constitution, Congress, and the courts, this administration has “forgiven” $160 billion in student loans – and counting. This political ploy not only raises the projected federal budget deficit by 27%, but it is also estimated to cost $475 billion over the 10-year budget window and largely bails out expensive degrees for the top 60% of earners. More than 60% of Americans do not have a college degree, and only 13% of taxpayers have student loan debt.
Attending college is expensive, but throwing money at a problem is not leadership.
Here’s the reality:
- The cost of postsecondary education is exploding, and families aren’t told the truth about how much a program will cost.
- Worse, millions of students ultimately either make less money than their program costs or lose money for enrolling.
- Federal spending on postsecondary education is massive and growing, while the problems that plague it are compounding.
Despite over a trillion dollars in proposed “fixes,” students today are expected to borrow more than ever and default at greater rates than students who were borrowing at the peak of the pandemic in 2021.
Instead of using the cash President Biden has thrown at colleges and universities to improve their education product or lower costs for students, our universities are simply paying themselves more through ever-growing administrative positions for everything from ESG to DEI.
Let’s dive into the solution: The College Cost Reduction Act.
Rather than transferring student loan debt onto American taxpayers and exacerbating the problems of inflated college costs and low-value degrees, the College Cost Reduction Act is a real solution that saves taxpayers $185 billion while focusing on outcomes and accountability from our universities.
Access and Affordability: Simplifies and strengthens the broken student loan program.
Accountability for Student Success: Colleges should have a stake in their students’ success and be responsible for reimbursing taxpayers for a portion of their losses if students don’t see a financial value from enrolling in an institution and can’t repay.
Transparency: Ensures students and families have clear, accessible, and accurate information about college expenses and return on investment by requiring standardized financial aid offers for students and improving college shopping tools like the College Scorecard.
The College Cost Reduction Act will not only lower college costs for students and families but also for taxpayers. According to the Congressional Budget Office, the reforms made by the CCRA will reduce direct spending by hundreds of billions of dollars over the next decade.
Stay tuned – we’ll keep you updated on the latest education news out of Washington.