Author Topic: House Passes Resolution to Block Biden's Student Loan Bailout  (Read 180 times)

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House Passes Resolution to Block Biden's Student Loan Bailout
By Brittany Sheehan | 9:00 AM on May 25, 2023

On Wednesday, House Republicans took a stand against President Joe Biden’s student loan forgiveness plan by passing a resolution, H.J. Res. 45. The resolution was authored by Virginia Republican Rep. Bob Good. The efforts were met with hostility from the White House, which announced it would veto the resolution should it reach Biden’s desk.

Republicans are using The Congressional Review Act which allows Congress to override executive regulatory actions. Passage of the resolution only requires a simple majority in each chamber, but it would take two super-majority votes to override the President’s veto.

Biden’s student loan cancellation hit a snag in November due to lawsuits and the Supreme Court has taken the issue under review after hearing arguments in February. A ruling is expected in the coming weeks.

Meanwhile, the House Committee on Education and Workforce, chaired by Rep. Virginia Foxx (R-NC), and the House Oversight and Accountability Committee, Chaired by Rep. James Comer (R-KY) is jointly requesting documents from the Department of Education. The Committees are investigating a scheme to disperse over $6 billion in student loans to 200,000 borrowers through a class action settlement in Sweet v. Cardona. The letter raised concerns that the Biden admin was using this as a way to bypass the lawful process in order to fulfill campaign promises of student loan forgiveness.

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Re: House Passes Resolution to Block Biden's Student Loan Bailout
« Reply #1 on: May 29, 2023, 04:47:40 pm »
Student Loan Repayments Will Resume After August As Part Of Debt Limit Deal

Forbes by Siladitya Ray 5/29/2023

The Biden administration’s pause on federal student loan repayments will end in late August as part of the debt ceiling deal that President Joe Biden and House Speaker Kevin McCarthy agreed to on Sunday, although the fate of the White House’s marquee student loan waiver program has been left to the Supreme Court.

Key Facts

The pause on federal student loan repayments will come to an end “sixty days after June 30, 2023,” according to the 99-page draft bill that outlines the debt ceiling deal.

The end of the pause means interest on student loans will also resume.

The deal also prohibits the Secretary of Education from using any authority to extend the pause unless “expressly authorized” by Congress.

The bill does not offer any details about how the loan payments will resume, but Politico reports that the Education Department expects borrowers to start making repayments in October.

The department has asked loan servicing companies to be ready to resume interest charging from September, the report added.

Crucial Quote

In a statement, Education Secretary Miguel Cardona praised Biden for averting a crisis with the deal and “protecting our student debt relief plan in full.” He added: “Despite Republicans’ efforts to end targeted student debt relief and move up our planned end to the payment pause, we will ensure a smooth return to repayment process. The deal also protects our ability to pause student loan payments should that be necessary in future emergencies.”