High Country Times

Education and the Workforce Committee Chairwoman Virginia Foxx has called on the Biden-Harris administration to withdraw a proposed rule by the Department of Education aimed at canceling student loans based on hardships. In her letter to Education Secretary Miguel Cardona, Foxx claims that this initiative represents an illegal debt transfer scheme.

Foxx states, "The administration chose to disregard the rule of law again and set course to concoct new schemes to transfer student debt from those who took on the responsibility of a loan agreement to the 87 percent of Americans who never attended college or paid off their loans."

According to Foxx, the proposal uses ambiguous language regarding "hardship" and suggests implementing a regulation through a 17-factor artificial intelligence data model for automatic loan forgiveness. It also includes an application process for borrowers seeking forgiveness due to hardship, making the Department of Education responsible for assessing individual circumstances. Foxx argues that this approach could face legal challenges similar to other forgiveness schemes currently under court injunctions.

She highlights that Section 432 of the Higher Education Act of 1965 does not mention "hardship," and with recent changes such as the overturning of the Chevron doctrine, she views this proposal as executive overreach costing taxpayers over $100 billion.

"This proposal to allow the Secretary unchecked power to define hardship and choose between borrowers' claims is one of many examples of what is wrong in Washington," Foxx continues in her letter. She criticizes it as a temporary solution burdening taxpayers with others' debts, suggesting that more focus should be placed on addressing fundamental issues within the student loan system.

Foxx's full letter can be accessed for further details.