Ranking Member Scott Praises ED Proposal to Reduce Student Loan Debt
Proposed changes would cut undergraduate loan payments in half and allow earlier debt forgiveness
WASHINGTON – Ranking Member Robert C. “Bobby” Scott (VA-03) issued the following statement after the Biden-Harris administration released a proposed rule to improve the Income-Driven Repayment program—which allows borrowers to reduce their monthly repayment amounts, extend repayment periods, and have their loans forgiven after 20-25 years of repayment—by modifying its Revised Pay As You Earn plan.
“Today’s announcement marks a major victory for student loan borrowers and will help address the long-standing flaws in the Income-Driven Repayment (IDR) system, one of our core student loan repayment programs. These flaws—dating back years before the Biden-Harris administration—forced too many borrowers into unmanageable repayment plans. What’s worse, mismanagement of student loan repayment data caused loan servicers and the Department of Education to miscalculate repayments and inaccurately track borrowers’ progress toward forgiveness.
“For months, I pushed the Department for a meaningful solution to not only fix the problems with income-driven repayment plans, but also provide redress for borrowers who have already been harmed. The administration’s proposed overhaul will create the most affordable income-driven repayment plan that has ever been made available to student loan borrowers, simplify the program, and correct the mismanagement of student loan repayment data.
“Today’s action stands as the latest example of the Biden-Harris administration and Congressional Democrats’ commitment to helping student borrowers pay off their loans and ensuring that our student loan system meets borrowers’ needs.”
In April 2022, Ranking Member Scott called for the Department of Education to improve the IDR system and secure a more generous and effective IDR plan for all federal student borrowers. That month, the Government Accountability Office also released a report, which found that the IDR system has left thousands of student loan borrowers without the loan forgiveness for which they may be eligible.
###
Press Contact
Democratic Press Office, 202-226-0853
Next Article Previous Article