Western South Dakota News

WASHINGTON, D.C. — U.S. Sen. John Thune (R-S.D.) recently urged the U.S. Department of Education to withdraw its latest proposal to transfer student loan debt onto American taxpayers. The proposed rule by the Department of Education is projected to cost Americans an additional $147 billion, potentially increasing the total student loan debt transferred to taxpayers to as much as $1 trillion.

"The latest Notice of Proposed Rule Making (NPRM) proposed by your Department of Education (Department) on April 17, 2024, represents the latest in a string of reckless attempts to transfer as much as $1 trillion of student loan debt from those who willingly borrowed to those who did not or have already repaid their loans," wrote Thune and other members. "In addition to the fiscally irresponsible nature of this backdoor attempt to enact 'free' college, the administration continues to use borrowers as political pawns knowing full well these proposed actions are illegal."

The letter was led by U.S. Sen. Bill Cassidy (R-La.), ranking member of the Senate Health, Education, Labor, and Pensions Committee; and U.S. Rep. Virginia Foxx (R-N.C.), chairwoman of the House Education and Workforce Committee; and was signed by multiple Republican senators including John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Katie Britt (R-Ala.), Mike Braun (R-Ind.), Ted Budd (R-N.C.), Shelley Moore Capito (R-W.Va.), John Cornyn (R-Texas), Tom Cotton (R-Ark.), Mike Crapo (R-Idaho), Kevin Cramer (R-N.D.), Ted Cruz (R-Texas), Steve Daines (R-Mont.), Joni Ernst (R-Iowa), Deb Fischer (R-Neb.), Lindsey Graham (R-S.C.), Chuck Grassley (R-Iowa), Josh Hawley (R-Mo.), John Hoeven (R-N.D.), Cindy Hyde-Smith (R-Miss.), Ron Johnson (R-Wis.), John Kennedy (R-La.), James Lankford (R-Okla.), Cynthia Lummis(R-Wyo), Roger Marshall(R-Kan), Mitch McConnell(R-Ky), Jerry Moran(R-Kan), Markwayne Mullin(R-Okla), Pete Ricketts(R-Neb), Jim Risch(R-Idaho), Mitt Romney(R-Utah), Mike Rounds(R-S.D,), Eric Schmitt(R-Mo,), Tim Scott(R-S.C,), Dan Sullivan(R-Alaska,) Thom Tillis,( R-N.C,), Tommy Tuberville,( R-Ala,) Roger Wicker( R-Miss,) Todd Young( R-Ind).

Thune has introduced several measures aimed at protecting taxpayers from bearing the cost of forgiving outstanding student loans—loans that borrowers had agreed to repay themselves. Last year, Thune introduced the Stop Reckless Student Loan Actions Act, which would prohibit presidential cancellation of federal student loan obligations due to a national emergency.

Thune also joined colleagues in introducing a resolution disapproving a rule that would forgive student loan balances after ten years for certain borrowers, including those in high-income households.

The letter criticized the NPRM's financial implications: "This regulation is even broader than the Department’s first attempt: at an estimated price tag of $147 billion, taxpayers are being forced to take on the debt of nearly 28 million borrowers." The lawmakers argued that many eligible for relief under this proposal have incomes exceeding $300,000.

They also highlighted legal concerns: "The Supreme Court has made it abundantly clear that there is zero authority to write off federal student loans en masse last June when the Department’s ‘Plan A’ was ruled unconstitutional."

Further criticisms included potential future costs: "Budget experts estimate that additional changes under 'Plan B' could bring its total cost up to nearly $750 billion."

The lawmakers expressed concern over delayed implementation of essential programs like FAFSA while resources were dedicated towards drafting these proposals: "Failure to make FAFSA available on time will have life-long consequences for many young Americans."

Concluding their appeal, they stated: "Instead of exacerbating problems with inflated college costs and low-value degrees, we urge you to withdraw this NPRM and work with Congress. It is past time that we fix our nation’s broken higher education financing system."