Staff Reports
A new estimate from the Congressional Budget Office suggests that a proposal from Congresswoman Virginia Foxx of North Carolina may save taxpayers $185 billion over the next ten years. The College Cost Reduction Act seeks to lower college expenses for students and families, streamline the student loan program, and restrain the policies of President Joe Biden and his administration. The bill, according to Foxx, the head of the House of Representatives Committee on Education and the Workforce, will hold colleges financially accountable for pricey degrees, give students and families clear, personalized information, and fund colleges based on student outcomes rather than onerous regulations.
https://twitter.com/CBS21NEWS/status/1792978727619396070
According to the analysis, the plan would save direct spending by $185.5 billion between 2024 and 2033 and $91.7 billion between 2024 and 2028 if it were to become law. According to Foxx, there is a critical need for reform in the postsecondary education sector in America, and the College Cost Reduction Act will provide much-needed affordability, accountability, and transparency measures. She underlined how crucial it is to cut expenses and guarantee value for taxpayers and students alike.
Through modifications to the Higher Education Act of 1965, the measure would alter federal student aid programs. Specifically, it would affect the federal loan program's payback terms, loan limitations, and institutional eligibility standards. It would also eliminate some restrictions, restrict the Department of Education's regulatory power, and establish a new institutional grant program that would be paid for by postsecondary schools. The proposal also intends to make postsecondary educational institutions that receive federal money subject to stricter data collecting and reporting requirements.
The potential cost to taxpayers of President Biden's plans to waive some borrowers' student loan debt is estimated to be as high as $1.4 trillion by critics. According to the nonpartisan Committee for a Responsible Federal Budget, the total estimated cost of Biden's recent efforts to erase debt ranges from $870 billion to $1.4 trillion. Rep. Burgess Owens, a Republican from Utah, praised the College Cost Reduction Act for saving taxpayers over $185 billion and emphasizing university achievements, but he claimed that Biden's strategy encourages universities to raise tuition.
The center-right fiscal policy group American Action Forum applauded Foxx's idea as a noteworthy contrast and chastised the Biden administration for not collaborating with Congress to put the student loan system on a safer course. At present, Foxx is trying to get the bill to a House floor vote from its position in the Committee on Education and the Workforce.
