U.S. Senate Republican Leader Mitch McConnell (R-KY) delivered the following remarks today on the Senate floor regarding student loan socialism:
“In the coming days, the Supreme Court will rule on President Biden’s plan to impose student loan socialism on millions of working families across America.
“The Court’s decision will settle whether the President is allowed to use two-decade-old “emergency” authorities dating back to the early days of the War on Terror to put $430 billion in debt on the American taxpayer’s tab without Congressional approval.
“But the American people don’t need to wait for the Supreme Court to explain to them why letting wealthy people dine and dash doesn’t make sense. They know the Biden Administration’s plan adds up to a raw deal.
“Mr. President, almost a third of all student debt in America is held by the wealthiest 20% of households. Only 8% is held by the bottom 20% of households.
“Sure enough, one prominent analysis found that more than 70% of President Biden’s so-called loan “forgiveness” could go to the top 60% of earners.
“That’s no surprise when you consider that the median annual income of young college graduates is 55% higher than folks working with a high school diploma.
“In some cases, Americans who choose to go to college already have an extra leg up – more students at the nation’s most elite colleges have parents among the top 1% of earners than the bottom 50%.
“The facts are so clear, even a former top Obama Administration economist has admitted, ‘across-the-board student loan forgiveness is regressive…’
“Mr. President, it’s really pretty simple:
“Millions of Americans choose to take on student loan debt and unlock higher earning potential. Millions of other Americans choose not to take on debt and make sacrifices to avoid it.
“The Biden Administration wants to take that basic choice away and impose student loan socialism instead.
“They want working Americans to take on $430 billion in debt they didn’t sign up for… just to pad the pockets of Washington Democrats’ base.
“What a raw deal.
“Senate Republicans know that complex issues require thoughtful solutions, not partisan hatchet jobs. That’s why several of our colleagues are working hard on legislation that actually gets to the root of soaring tuition costs.
“Senators Cassidy, Grassley, Cornyn, Daines, Tuberville, and Tim Scott have put forward ideas to increase transparency before students sign up for massive debt, to streamline repayment plans, and to go after the advanced degree loans that are particularly responsible for driving up prices.
“I’m grateful to our colleagues for their work on real solutions.
“On the other hand, Mr. President, the Biden Administration’s student loan socialism plan is painfully unfair. And very soon, we’ll find out if it isn’t just downright illegal.”