[Congressional Record Volume 168, Number 69 (Wednesday, April 27, 2022)]
[Senate]
[Pages S2191-S2193]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. THUNE (for himself, Mr. Burr, Mr. Braun, Mr. Cassidy, and 
        Mr. Marshall):
  S. 4094. A bill to amend the Higher Education Relief Opportunities 
for Students Act of 2003 to strike the Secretary's unilateral authority 
during a national emergency, and for other purposes; to the Committee 
on Health, Education, Labor, and Pensions.
  Mr. THUNE. Mr. President, the Biden administration can't quite seem 
to decide on the status of the pandemic or the status of the economy.
  On the one hand, we are being told that we no longer need pandemic-
era border restrictions intended to help limit illegal immigration and 
prevent the spread of COVID. On the other hand, the administration is 
still fighting to require Americans to wear masks on public transit and 
airplanes and is urging Congress to pass additional COVID spending to 
fight the pandemic the administration seems to believe is over at the 
border.
  It is a confusing message, to say the least. Americans know the 
pandemic can't simultaneously be over for migrants at the border but 
make it too dangerous for a South Dakotan to fly from Sioux Falls to 
Minneapolis without a mask.
  The administration's messaging is similarly muddled on the economy 
and student loans. On the one hand, the President is proudly touting 
``record'' job creation and ``record'' economic growth even though most 
of what he is taking credit for is the natural consequence of an 
economic recovery from the pandemic. On the other hand, the President 
recently announced that he is extending the moratorium on Federal 
student loan payments, interest, and collections for another 4 months, 
until August 31, because Americans are still suffering economically as 
a result of the pandemic.
  Well, which is it? Is our economy thriving or are Americans 
economically distressed?
  The student loan repayment moratorium and interest freeze included in 
the CARES Act at the beginning of the pandemic made sense. Our economy 
was starting to shut down, and Americans' jobs were in jeopardy, but it 
made sense as a temporary measure for a genuine emergency. We are no 
longer having double-digit unemployment as we did during some of the 
worst moments of the pandemic. In fact, our current unemployment rate 
is a low 3.6 percent. For college graduates, the unemployment rate is a 
staggeringly low 2 percent.
  To paraphrase the Wall Street Journal's editorial board on the 
subject, if student loan borrowers aren't ready to return to making 
payments now, they will never be.
  Even the Washington Post editorialized against the President's latest 
extension, noting:

       What was a needed emergency measure at the start of the 
     pandemic is no longer justified. It is hard to make an 
     argument that college graduates are struggling right now. The 
     unemployment rate for Americans with a bachelor's degree or 
     higher is a mere 2 percent. There is a near-record number of 
     job openings.

  That was from the Washington Post.
  It is true that Americans are facing economic challenges as a result 
of the inflation that President Biden and Democrats helped to create 
with their ill-considered American Rescue Plan Act, but, if anything, 
President Biden's latest student loan pause could help prolong our 
inflation problems, and, importantly, it will have the biggest benefits 
for those who are most able to deal with price hikes from inflation. 
This clearly regressive policy benefits high-debt, high-income 
borrowers significantly more than low-debt, low-income borrowers.
  Again, to quote the Washington Post once more:

       Rising prices of gas, rent, food and cars are a hardship, 
     but forgiving interest on student loans for four more months 
     offers the biggest benefits to people who have earned degrees 
     in medicine and law. These people go on to have lucrative 
     careers. Meanwhile, the 64 percent of Americans who do not 
     have a college degree don't benefit at all from Biden's pause 
     on loan repayments.

  That was again from the Washington Post.
  And subsidizing all of those doctors and lawyers ends up being pretty 
expensive. The student loan repayment moratorium has already cost the 
Federal Government more than $100 billion. By the time the President's 
latest extension of the moratorium is up, it will have cost the Federal 
Government billions more.
  After a huge increase in our national debt, thanks to the pandemic 
and reckless Democratic spending, the government does not need to be 
forgoing billions of dollars by providing student loan relief to 
Americans with some of the highest earning potential, which is why, 
this morning, I introduced legislation--the Stop Reckless Student Loan 
Actions Act--to end the current deferment on student loan repayments 
and limit a President's authority to pause student loan repayments in 
the future.
  My legislation, which I introduced with my colleague Senator Richard 
Burr and Senators Braun, Cassidy, and Marshall, would continue to allow 
a President to temporarily suspend student loan payments during a 
future national emergency, but it would limit those suspensions to a 
period of 90 days and subject them to congressional disapproval.
  It would also ensure that relief is targeted to those who need it 
most by preventing Presidents from suspending

[[Page S2192]]

payments for higher income individuals; and, importantly, it would 
prevent a President or a Secretary of Education from using a national 
emergency to cancel student loan debt, which leads me to, perhaps, my 
biggest concern in all of this.
  Deferring student loan payments is a bad policy that is costing the 
Federal Government money it doesn't have, but it pales in comparison to 
the ultimate goal for many Democrats--and that is canceling student 
loan debt entirely.
  Days ago, the President's Press Secretary, in referring to the 
payment deferment, said:

       Between now and August 31, it's either going to be extended 
     again or we're going to make a decision . . . about canceling 
     student debt.

  That was from the President's Press Secretary.
  Her statement made it alarmingly clear that the President isn't just 
temporarily deferring loan payments but is seriously considering 
canceling--canceling--a significant portion of Federal student loan 
debt.
  She doubled down on that idea on Monday, noting:

       What I would tell you is that not a single person in this 
     country has paid a dime on Federal student loans since the 
     President took office.

  My gosh, canceling student loan debt is a bad idea for so many 
reasons.
  In the first place, it is money the Federal Government simply doesn't 
have. Democrats often speak as if the Federal Government were able to 
draw from an unlimited pot of money, but, of course, we know that is 
not true. Government funds aren't anywhere close to being unlimited, 
and government coffers aren't filled from a pot of gold at the end of 
the rainbow. They are filled by taxpayer dollars, and sooner or later, 
it will be taxpayers who foot the bill for any loan forgiveness 
program, including the many taxpayers who opted not to attend college 
or who chose a debt-free way of doing so.
  I can scarcely think of anything more unfair than forcing Americans 
who incurred no college debt to shoulder the bill for those who did, 
especially when a substantial portion of that debt is incurred by those 
with the greatest earning potential.
  Canceling student debt would also be grossly unfair to the Americans 
who worked hard for years to pay off their loans. An American who has 
just finished paying off his or her higher education debt would get 
nothing--nothing--from such a cancellation while a recent graduate who 
had made just a month or two of payments could see his or her debt 
disappear entirely.
  And canceling student debt would do nothing to address the real 
problem, which is the out-of-control cost of higher education. In fact, 
it would likely make that problem worse, not to mention the fact that 
student loan cancellation would take an already bad inflation situation 
and, almost undoubtedly, make it much worse. We think 8.5-percent 
inflation is bad, and it is, but canceling student loan debt this fall 
could take inflation to new and even more painful heights.
  Now, I strongly support finding ways to drive down the cost of higher 
education and educate students about the dangers of excessive debt. I 
also support measures to help students pay off their student loans 
without putting taxpayers on the hook for hundreds of billions of 
dollars or more. I would note the measure that I got included in the 
CARES Act and extended later that year to allow employers to make tax-
free payments on their employees' student loans; but unnecessarily 
deferring student loan payments--or worse, the canceling of a 
significant portion of student loan debt entirely--is a terrible idea 
for many reasons.
  I hope that colleagues from both sides of the aisle will join the 
student loan bill that I introduced earlier today to end these endless 
and unnecessary loan deferment extensions.
  I hope at least some of my Democratic colleagues will recognize the 
unwisdom of canceling student loan debt, its blatant unfairness to 
individuals who have already paid off their student loans or who never 
went to college and the negative effect it would have on our inflation-
ridden economy.
  Mr. THUNE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 4094

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Stop Reckless Student Loan 
     Actions Act of 2022''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) The Higher Education Relief Opportunities for Students 
     Act of 2003 (20 U.S.C. 1098aa et seq.) was intended to 
     provide relief opportunities for members of the armed 
     services.
       (2) The authority provided under the Higher Education 
     Relief Opportunities for Students Act of 2003 has been abused 
     by the Executive Branch during the COVID-19 national 
     emergency regarding the payment of Federal student loans.
       (3) The unilateral payment pause on Federal student loans 
     has cost $100,000,000,000.
       (4) The individuals benefitting the most from the payment 
     pause continued by the Executive Branch are doctors, who 
     receive 11 times the benefit of bachelor's degree recipients 
     and 14 times the benefit of associate's degree recipients.

     SEC. 3. AMENDMENTS TO THE HIGHER EDUCATION RELIEF 
                   OPPORTUNITIES FOR STUDENTS ACT OF 2003.

       Section 5(2) of the Higher Education Relief Opportunities 
     for Students Act of 2003 (20 U.S.C. 1098ee) is amended--
       (1) in the matter preceding subparagraph (A), by inserting 
     ``(or the spouse or dependent of the parent, as that term is 
     used in section 480 of the Higher Education Act of 1965 (20 
     U.S.C. 1087vv))'' after ``an individual'';
       (2) in subparagraph (A), by inserting ``and'' after the 
     semicolon;
       (3) in subparagraph (B), by striking the semicolon and 
     inserting a period; and
       (4) by striking subparagraphs (C) and (D).

     SEC. 4. HIGHER EDUCATION RELIEF OPPORTUNITIES FOR CIVILIANS 
                   IN THE CASE OF A NATIONAL EMERGENCY AND 
                   LIMITATIONS ON COVERED LOANS.

       (a) Temporary Authority for Higher Education Relief.--
       (1) In general.--Subject to the limitation provided in 
     subsection (c), during the 90 day period after a declaration 
     of a national emergency under section 201 of the National 
     Emergencies Act (50 U.S.C. 1621), the Secretary of Education 
     may suspend or defer Federal student loan payments or the 
     accrual of interest for loans made, insured or guaranteed 
     under part B, D, or E of title IV of the Higher Education Act 
     of 1965 (20 U.S.C. 1071 et seq.; 1087a et seq.; 1087aa et 
     seq.) or loans under the Health Education Assistance Loan 
     Program.
       (2) Limitation.--The Secretary of Education may not use the 
     temporary authority provided under paragraph (1) in 
     consecutive 90 day periods.
       (b) Recommendations for Higher Education Relief From the 
     Secretary of Education.-- In the case of a national emergency 
     declared by the President under section 201 of the National 
     Emergencies Act (50 U.S.C. 1621), the Secretary of Education 
     shall submit to the Committee on Health, Education, Labor, 
     and Pensions of the Senate and the Committee on Education and 
     Labor of the House of Representatives, not later than 60 days 
     after the date of such declaration, a report that includes 
     any recommendations on relief necessary for recipients of 
     student financial assistance under title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1070 et seq.).
       (c) Limits on Executive Authority to Suspend or Defer 
     Federal Student Loan Payments or Interest.--
       (1) In general.--Notwithstanding any other provision of 
     law, the President or the Secretary of Education may not 
     suspend or defer Federal student loan payments on covered 
     loans or the accrual of interest on covered loans of 
     borrowers with annual household incomes over 400 percent of 
     the poverty line (as determined under the poverty guidelines 
     updated periodically in the Federal Register by the 
     Department of Health and Human Services under the authority 
     of section 673(2) of the Community Services Block Grant Act 
     (42 U.S.C. 9902(2))).
       (2) Application of congressional review act.--In any case 
     where the President or the Secretary of Education suspends or 
     defers Federal student loan payments on covered loans or the 
     accrual of interest on covered loans through any type of 
     executive or regulatory action, the suspension or deferral 
     shall be--
       (A) deemed to be a major rule for purposes of chapter 8 of 
     title 5, United States Code (commonly known as the 
     ``Congressional Review Act''); and
       (B) subject to congressional disapproval in accordance with 
     such chapter.
       (d) Limits on Executive Authority to Cancel Student 
     Loans.--
       (1) In general.--Notwithstanding any other provisions of 
     law, the President or the Secretary of Education may not 
     cancel the outstanding balances, or a portion of the 
     balances, on covered loans due to the COVID-19 national 
     emergency or any other national emergency.
       (2) Application of congressional review act.--In any case 
     where the President or the Secretary of Education cancels the 
     outstanding balances, or portion of the balances, on covered 
     loans through any type of executive or regulatory action, the 
     cancellation shall be--
       (A) deemed to be a major rule for purposes of chapter 8 of 
     title 5, United States Code

[[Page S2193]]

     (commonly known as the ``Congressional Review Act''); and
       (B) subject to congressional disapproval in accordance with 
     such chapter.
       (e) Implementation.--
       (1) Regarding suspensions or deferments of federal student 
     loan payments ongoing at the time of enactment.--Not later 
     than the effective date of this Act, any suspension or 
     deferment of Federal student loan payments on covered loans 
     due to the COVID-19 national emergency shall terminate. 
     Notwithstanding any other provision of law, a subsequent 
     suspension or deferment of Federal student loan payments on 
     covered loans for the COVID-19 national emergency shall be 
     prohibited.
       (2) Regarding cancellation of student loans prior to 
     effective date.--Any cancellation of the outstanding balance, 
     or portion of a balance, on a covered loan made by the 
     President or Secretary of Education through any type of 
     executive or regulatory action in the 30 days before the 
     effective date of this Act shall be--
       (A) deemed to be a major rule for purposes of chapter 8 of 
     title 5, United States Code (commonly known as the 
     ``Congressional Review Act''); and
       (B) subject to congressional disapproval in accordance with 
     such chapter.
       (f) Definition of Covered Loan.--In this subsection, the 
     term ``covered loan'' means a loan made, insured, or 
     guaranteed under part B, D, or E of title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1071 et seq.; 1087a et seq.; 
     1087aa et seq.) or a loan under the Health Education 
     Assistance Loan Program.

     SEC. 5. EFFECTIVE DATE.

       This Act, and the amendments made by this Act, shall take 
     effect on the date that is 30 days after the date of 
     enactment of this Act.
                                 ______