Today, Congressman Warren Davidson (R-OH) led a letter to the Chairman of the House Committee on Education and Labor requesting that it take a closer look at the Federal Direct Student Loan Program, re-evaluate its role, and eliminate it, if necessary.
The letter reads, “Though well intended, the program has been disastrous for both students and taxpayers. In 2020, the U.S. Department of Education conducted an internal analysis that concluded that of the $1.37 trillion in student loans, borrowers would only pay back $935 billion in principal and interest. This means taxpayers will be forced to pay the $435 billion difference.
Each year, the Federal Direct Loan Program takes a costly toll on both students and taxpayers. Congress must address this problem since the President has no authority to act on his own. Moreover, student loan bailouts will not solve the issue... We call on the committee to evaluate the William D. Ford Federal Direct Loan Program and eliminate it, if necessary. Our nation must set students up for success and spend taxpayer dollars responsibly.”
“Student loan debt burdens millions of Americans, yet the federal government continues to distribute loans knowing the end game—many times—is bankruptcy for the borrower,” said Rep. Davidson. “If we want a solution, we must identify the problem, which is the federal lending program itself. It is time Congress reevaluates this flawed program and fixes the core of this crisis.”
To read the full text of the letter click here.
Original source can be found here.
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