Ernst Urges Biden to Withdraw Latest $147 Billion Student Loan Bailout

WASHINGTON – U.S. Senator Joni Ernst (R-Iowa) joined her colleagues in demanding the Department of Education withdraw its latest attempt to transfer student loan debt onto American taxpayers.

In the letter, the lawmakers point out that the administration’s proposed loan rule will cost hardworking Americans an additional $147 billion and bring the total student loan debt transferred to taxpayers to as much as $1 trillion. Meanwhile, the Biden administration is failing to properly implement the new Free Application for Federal Student Aid (FAFSA), preventing students and families from accessing crucial financial aid information.

“President Biden is clearly more concerned with advancing liberal loan transfer schemes than he is with actually fixing the FAFSA for students, schools, and families,” said Senator Ernst. “Forcing millions of hardworking Americans to pay for student loans they never took on, while refusing to provide a clear path forward for students, families, and schools is yet another example of this administration’s misplaced priorities.”

Background:

In April, Ernst announced a bicameral investigation of the Department of Education to find out if they used money intended for the FAFSA Simplification Act for their student loan bailout.

Ernst has long fought to ensure students from families with small businesses and farms can pursue a higher education. In 2023, she introduced the Family Farm and Small Business Exemption Act to reverse recent changes to the FAFSA process that could reduce or even eliminate access to need-based student aid for farm families and small business owners.

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