Washington, D.C. – Congressman Michael C. Burgess, M.D. (R-TX) warned against President Biden’s announcement of a student loan program that would forgive $10,000 in federal student loans per borrower for those who did not receive Pell grants. The Department of Education will provide up to $20,000 in loan forgiveness to borrowers with loans held by the Department of Education whose individual income is less than $125,000 ($250,000 for married couples) and who did receive a Pell Grant. This will extend to roughly 27 million borrowers.

“Once again, President Biden is passing the buck to hardworking Americans,” said Burgess. “There is an age old saying, ‘that nothing is free.’ Student loans will not just be ‘forgiven.’ This debt is now passed to the American taxpayer, including the 87% of Americans who do not have student loans. Simply put, this is bad for an economy already facing record inflation. Even worse, the majority of forgiven loans will benefit the top 60% of income earners.”

“All borrowers must understand the risk and the debt they take on when obtaining a student loan. In addition, educational institutions should ensure that is investment is not wasted by providing appropriate academic experiences and guidance that will lead to relevant and gainful employment.

“This is a dangerous precedent to set and will only encourage higher education institutions to raise the cost of tuition across America, without being held liable. Ultimately, it will cost Americans billions of dollars over the next 10 years.”