[Congressional Record Volume 168, Number 72 (Monday, May 2, 2022)]
[Senate]
[Pages S2234-S2235]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                        Student Loan Forgiveness

  Mr. GRASSLEY. Madam President, there has been a lot of noise about 
canceling student debt. That has been going on for quite a few months, 
but it seems to have taken on a new life here within the last week to 
10 days. That whole talk is worse than closing the barn door after the 
horse has escaped; it is like buying a new horse but leaving the barn 
door open. If all student debt was gone tomorrow, we would be right 
back where we started when this whole new crop of students graduate.
  Last month, the administration unilaterally extended all the pause on 
paying back student loans for all borrowers until the end of August, 
regardless of need. It doesn't matter that all Americans are back to 
work now, if they want to be back to work. It doesn't matter if the 
borrower is making six figures and can afford to pay off their loans.
  The latest extension will bring the cost of this student loan payment 
pause up to about $150 billion. Just to put that $150 billion in 
context, the entire Department of Education budget for this year is 
about half of that amount at $80 billion.
  Higher education advocates have been calling for the doubling of the 
Pell grant. That is the program that targets aid to those with the most 
financial need. It is a noble goal to double the Pell grant; but, of 
course, Congress needs to find the money somewhere to do just that.
  Now, instead, the Biden administration is spending billions of 
dollars to allow high earners with graduate degrees to not pay their 
loans with no say from the Congress of the United States. And you know 
the President of the United States has been debating for months--maybe 
starting at the beginning of his term--did he really have the authority 
to do it. He has expressed the opinion, at least on the $50,000 figure, 
that he didn't figure he had the authority to do it. I question whether 
he has that authority at all.
  If you want to help those who owe more in student loans than they can 
afford to pay, we need to fix the student loan program on the front 
end. In other words, we need to change the incentives and give colleges 
a reason to bring down tuition. Right now, a high school student 
looking at college is often in the dark about what they will end up 
paying to attend college and to get that degree. It is no wonder that 
prices rise when students don't know even what those prices are. And 
students are encouraged, of course, to borrow the maximum even if they 
don't need that maximum, because that is what the Federal law requires.
  So in response to this problem about a Federal policy encouraging 
students to go into more debt than they need to get their degree and 
also about the rising tuition costs because colleges think they can 
raise their tuition at will because the Federal Government is going to 
come in and help the student, I have introduced three bipartisan bills 
to give students the information they need to make the choice that 
works best for them. My bills would make it easier for students to see 
how much each college would cost, what aid they are going to be 
getting, and what their average salary versus student loan payments 
would be. The answer isn't to cancel student debt only after students 
have gotten in well over their heads, it

[[Page S2235]]

is to stop them from getting into that situation in the very first 
place. And it certainly wouldn't be done unilaterally from the White 
House with no say from this Congress on the $150 billion program.
  Now, even worse, the benefits of just canceling or pausing student 
debt are mainly going to those at the top of the income range. 
Graduates with the most debt also tend to be those with the longest 
degrees and they are now doctors or lawyers. These people, doctors and 
lawyers, might have plenty of debt now, but people with graduate 
degrees are also much more likely to have a higher salary and much 
higher lifetime earnings.
  Are the two-thirds of the Americans without college degrees somehow 
less deserving of a free $10,000 or $50,000 in canceled debt than 
doctors or lawyers? And what about those people that have already paid 
off their loans? Are they going to bear the costs of people that 
borrowed too much when this is forgiven at the $10,000 or $50,000 
level?
  I am sure many Iowans would be happy to have their car loans or 
mortgages paid off. Is there any thought about what this can lead to? 
It is pretty clear. Canceling debt is not a solution. Instead, I have 
been glad to see many of my colleagues on both sides of the aisle join 
my bills to prevent excess student debt in the very first place.
  We need to help students by giving them the information they need to 
find the best college for their needs at a cost they can afford. 
Otherwise, forgiving student debt is a slippery slope to a lot of other 
interests wanting debt forgiveness.
  I yield the floor.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. SCHUMER. Madam President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.