Today, Congressman Warren Davidson (R-OH), joined by 12 of his colleagues, introduced the House companion bill to Senator Rick Scott's Debt Cancellation Accountability Act. This legislation will prevent the Biden administration from enacting blanket student loan forgiveness. If the Department of Education attempts to waive or discharge more than $100,000 in federal student loans for two or more borrowers, this legislation would require them to obtain funding from Congress first.
The Biden administration has no legal authority to unilaterally cancel student loan debt. "The Debt Cancellation Accountability Act simply reiterates that any student loan bailouts would require Congressional approval," said Rep. Davidson. "This administration cannot spend massive amounts of taxpayer money with just the stroke of a pen." A $50,000 bailout per borrower would leave taxpayers with a $900 billion tab.
"It is not the responsibility of a self-taught farmer in Ohio to take on the financial burden of an Ivy League graduate in New York who willingly obtained a loan," said Rep. Davidson. Only a small portion of Americans would benefit from student loan bailouts, 70% of which are in the top half of the income spectrum. "President Biden's reckless policies have already caused record-high inflation and an economic recession. Yet, he is more concerned with satisfying the radical Left's wish list than he is with solving the issues that currently impact all Americans."