House Education and Workforce Committee develops student loan reform plan

2CTW8GG Jacksonville, United States. 24th Sep, 2020. A young boy wearing a Make America Great Again (MAGA) hat holds a MAGA placard while waiting for U.S. President Donald Trump to speak at a Great American Comeback campaign rally at Cecil Airport.With 40 days until the 2020 presidential election, recent polls show a tight race between Trump and his Democratic opponent, former U.S. Vice President Joe Biden. Credit: SOPA Images Limited/Alamy Live News

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The House Committee on Education and Workforce has unveiled a Student Success and Taxpayer Savings Plan aimed at reforming the broken student loan program and holding colleges accountable for losses. 

Education and Workforce Committee Chairman Tim Walberg, R-Mich., posted to X about the new plan on Tuesday. He wrote, “We are on a fiscally unsustainable path and must deliver on the promise of economic mobility to our students and families.”

The 103-page Student Success and Taxpayer Savings Plan implements student loan caps, streamlines student loan payments with simplified plans and offers plan changes for borrowers experiencing financial strain. 

In addition, the Student Success and Taxpayer Savings Plan revamps the federal Pell Grant program to promote student degree completion and close loopholes that allow wealthy students with foreign income to receive aid. 

The Student Success and Taxpayer Savings Plan goes further to prevent student loan debt transfer (in the form of “forgiveness”) from being granted through the Executive branch of the federal government. It also holds colleges accountable by requiring them to repay a portion of student loan debt based on the return on investment for students’ degree success rates.

Committee member, Dr. Bob Onder, R-Mo., celebrated the plan’s goals on X, stating, “We will save over $350 billion, rein in waste, fraud, and abuse, and end the budget bloat embodied in the $1 trillion Biden’s ‘forgiveness’ scheme.”

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