Student rates

Republicans set to probe Biden’s student debt relief when they take control of the House

  • GOP representatives Virginia Foxx and Jason Smith have begun watchdog actions over Biden’s student debt relief.
  • They asked the OMB to keep all records related to the costs of student debt reforms.

Republicans are preparing to exercise their oversight power over President Joe Biden once they take control of the House.

On Nov. 17, Reps. Jason Smith and Virginia Foxx — the lead Republicans on the House Budget and Education Committees, respectively — sent a letter to Office of Management and Budget (OMB) Director Shalanda Young regarding Biden’s recent actions to reform the student loan program.

Specifically, they asked the OMB to retain all records related to the president’s “expensive plan to overhaul the federal student loans program,” including his announcement to forgive up to $20,000 in student debt for federal borrowers, as well as his proposals for income-contingent repayment reform. plans, which will reduce the monthly payments that borrowers would be required to make.

“It is essential that the Biden administration be as transparent as possible with the American people about the projected costs and economic impacts associated with these policies, particularly how these fiscal impacts have been taken into consideration when the details of the policy were debated and ultimately determined,” the lawmakers wrote. . “For example, after a full year of runaway inflation, with no signs of slowing anytime soon, Americans deserve to know if the OMB considered how these actions would make inflation worse.”

While Democrats maintained control of the Senate in the midterm elections, Republicans managed to win a slim majority in the House — and they will likely use that power to investigate the Biden administration. For example, House Minority Leader Kevin McCarthy Told Fox News that he is considering investigations into Biden’s handling of the pandemic and his troop withdrawal from Afghanistan, among other things.

Canceling student loans is also on the list — Foxx and other Republican lawmakers have been sharply critical of debt relief, arguing it would cost taxpayers and require congressional approval. They supported the of them court case who succeeded in ending the implementation of debt relief.

Now Foxx and Smith want the OMB to hold information about when Biden announced debt relief in August in coordination with mid-terms, any estimates of the impact of inflation that the relief will incur and the cost of the relief per month to the United States. taxpayers.

As a previously insider reportedwhile House Republicans could also try to block debt relief themselves through legislation, the fate of student loan forgiveness ultimately rests with the courts as they will not have enough vote to override a Biden veto.

As the court process could take months, the Ministry of Education is considering extend the student loan payment pause again, beyond its December 31 expiration date. The department also took the case to the Supreme Court, most recently attractive the 8th Circuit Court of Appeals’ decision to continue its pause on Biden’s debt relief. It is not known at this stage what the highest court in the land will decide, and in the meantime the department has started notify borrowers that their relief requests have been approved.