U.S. Senator Joni Ernst (R-Iowa) released the following statement, denouncing President Biden’s plan to “cancel” student loan debt:
“President Biden is rewarding the wealthy and penalizing working families.
“Why should Iowans who chose to go straight into the workforce or pay for their own education foot the bill for master’s degrees for the wealthy? It is unfair and will fan the flames of inflation and add to our growing federal debt.
“Instead of putting a band-aid on the problem and passing the buck, we should be giving students and their families a clear picture upfront about the true costs associated with their education. That’s why I introduced my Student Transparency for Understanding Decisions in Education Net Terms Act—a commonsense way to help students make informed decisions about their future.”
Ernst has supported and introduced a number of bipartisan bills to provide transparency behind the costs of college, including:
- The STUDENT Act – gives students a clear estimate of the costs they would owe down the road before they take out a loan by incorporating the estimated total interest amount based on their repayment plan.
- The Net Price Calculator Improvement Act – improves the effectiveness of and access to tools that provide students with early, individualized estimates of higher education costs and financial aid before they decide where to apply.
- The Understanding the True Cost of College Act – creates a universal financial aid award letter so that students could easily compare financial aid packages between schools.
- The Know Before You Owe Federal Student Loan Act – makes counseling an annual requirement before new student loans are disbursed, rather than just for first-time borrowers.