Committee Print to comply with reconciliation directives included in H. Con. Res. 14 Section 2001(b)(3), H. Res. 344
Committee on Economic and Educational Opportunities
2025-04-29
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Source: Congress.gov
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the committee will please come to order a quorum is present the committee meets today pursuant to notice Today we'll consider the committee print to comply with the reconciliation directives included in section 2001B3 of H-Con Res 14, the concurrent resolution on the budget for fiscal year 2025, otherwise known as the Student Success and Taxpayer Savings Plan. The chair announces that requests for recorded votes may be postponed pursuant to clause two of rule 11 of the rules of the House of Representatives and committee rule 14B. Without objection, the chair may recess the committee at any point. The student success and taxpayers plan, savings plan, which saves over $350 billion to help advance President Trump's agenda to provide tax relief for American families and small businesses, rein in wasteful spending, and reduce the federal budget deficit. It's no secret that spending in Washington has been a disaster. Waste fraud and abuse has left the American taxpayer on the hook for government bloat and ineffective programs as our national debt races past $36 trillion. Since day one, President Trump has been crystal clear in his priorities to bring tangible reform to this broken system. The budget reconciliation process gives us a key opportunity to right-size this sinking ship and implement the American first agenda.
If there is any consensus when it comes to student loans is that the current system is effectively broken. and littered with incentives that push tuition prices upward. Schools have no reason to lower costs or ensure degrees align with employer needs, all while students and taxpayers pay the price. Real college prices have tripled since the baby boomers went to school, and real college graduate earnings have frozen since the turn of the century. This all culminates in students holding over $1.6 trillion in federal student loan debt, with taxpayers estimated to lose hundreds of billions of dollars on loans dispersed over the next decade. The Biden-Harris administration's foolish actions in the federal student loan program exacerbated this budgetary catastrophe. Instead of tangible reforms to address these issues, the Biden-Harris administration attempted to spend an additional $1 trillion in taxpayer funds on so-called forgiveness by executive decree. From their radical save loan repayment plan to the never-ending repayment pause, Democrats are intent on forcing taxpayers to pay for free college. Dumping more federal money into a broken system doesn't mean that system will work. In fact, government spending on higher education has reached record highs, yet millions of students benefiting from those funds will ultimately end up with a degree that doesn't pay off or fail to finish school altogether.
This bill set forth by committee Republicans not only would save taxpayers over $350 billion, but also bring much needed reform to three key areas. Simplified loan repayment, streamlined student loan options, and accountability for students and taxpayers. The bill cleans up the mess that the Democrat created repayment crisis, including for the millions of borrowers who are in limbo awaiting court decisions stemming from President Biden's radical and illegal rewrite of the law. Moreover, it simplifies and improves the system going forward by streamlining repayment options and providing targeted assistance to struggling borrowers who need it rather than blanket bailouts for those who don't. These reforms will encourage responsible borrowing and timely repayment. It's no secret that some colleges have exploited the availability of uncapped federal lending and generous forgiveness programs to raise prices rather than improve access and affordability. Streamlining loan options as done in this bill will increase affordability for students and families as well as curtail the extent to which schools use taxpayer dollars to line their pocketbooks by loading students up with debt they can't repay.
Finally, the bill ensures that hundreds of billions of taxpayer dollars no longer flow unchecked to low-value institutions and programs by holding colleges accountable for student outcomes by requiring schools to have skin in the game The carrot and stick approach taken in this bill will hold colleges financially accountable for the loans they give out and reward those institutions who go above and beyond to provide high quality, affordable, and accessible education opportunities. Higher education is at an inflection point. We are on a fiscally unsustainable path, so we must deliver on the promise of economic mobility to our students and families. Taken together, the provisions in this package will do just that. Taxpayers need our help. I urge my colleagues to pass this reconciliation bill. And with that, I yield to the ranking member for his opening statement. Thank you, Mr. Chairman.
Mr. Chairman, in this town there's a saying that if you want to see someone's values, show me their budget. Regrettably, the reconciliation plan that has come before us today reveals a betrayal of the promise that Lyndon B. Johnson, President Johnson, made when he signed the Higher Education Act back in 1965. He said, and I quote, that the signing of this means that a high school senior anywhere in this great land of ours can apply to any college or any university in any of the 50 states and not be turned away because their family is poor. When signing the Higher Education Act, America demonstrated its values. That is that the federal government will help students seeking higher education, higher learning aspirations and opportunities. This is why just a few decades ago, the Pell Grant covered 80% of the cost of attending a state college. And with this financial support, America promoted higher education and is making great strides to support the value of a liberal arts education. which improves critical thinking, enhances an appreciation for and exalts the values of diversity, equity, and inclusion. Over the course of the last couple of decades, however, there's been an open hostility to higher learning. We've seen the disinvestment in higher education that the Pell Grant now covers about one-third of the cost of attending a state college. And we also saw some questionable for-profit schemes masquerading as institutions of higher learning, skyrocketing tuition and passing out worthless credentials.
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