Staff Reports
A new federal report throws cold water on the Biden administration’s student loan policies, revealing that a mere 40% of borrowers are actually making their payments. This revelation has ruffled a few conservative feathers, particularly for U.S. Representatives Virginia Foxx of North Carolina and Senator Dr. Bill Cassidy from Louisiana. They have pointed out that the White House appears to be more focused on scoring political points at the expense of American taxpayers rather than addressing the monumental mess of student debt.
Foxx and Cassidy took it upon themselves to request an analysis from the Government Accountability Office after they smelled a rat in the Biden administration’s cozy handling of borrower payments. After a 3½-year hiatus due to COVID, repayments were supposed to resume in October 2023. However, their analysis shows that while only 40% of borrowers are current on their payments, another 8 million have been dumped onto forbearance thanks to the policies unleashed by the White House. It seems that rather than preparing students for the fiscal responsibilities they agreed to, the administration is just enabling them to kick the can further down the road.
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Foxx didn’t mince her words, suggesting that Biden and Harris have created an atmosphere of “false hope” that has led many borrowers to believe they can dodge repayments with little consequence. This mindset exemplifies an alarming trend in which accountability for personal financial decisions seems to vanish under the Democratic agenda. With calls for the College Cost Reduction Act, Foxx advocates holding educational institutions accountable for the exorbitant costs they impose—which leads to students graduating with crippling debt and little to show for it.
Cassidy shared his skepticism about the administration’s honesty regarding student debt management. He articulated concerns that Biden and Harris are not merely misleading borrowers but actively setting them up for failure. He emphasized that while borrowers accumulate interest with unpaid loans, the administration distracts them with unrealistic promises of widespread debt cancellation—which they have no legal authority to fulfill. This could ultimately shift the burden of responsibility to the 87% of Americans who either opted out of college or have already paid their loans, reinforcing the idea that fairness plays second fiddle in this administration’s decision-making.
The federal report further details the alarming figure that 30% of borrowers, representing a staggering $290 billion in loans, are already past due on their payments. Moreover, with $254 billion of loans expected to go unpaid due to ongoing deferment or forbearance, the situation is shaping up to be a ticking time bomb for an economy already facing significant pressure. As the Biden administration continues to play the waiting game, Americans who chose financial responsibility wonder when they’ll see a sincere effort to address the debts of those who took loans and borrowed freely. Meanwhile, the administration’s policies appear intentionally crafted to avoid consequences until after the November elections—a timing choice too convenient to ignore.
