ICYMI: Ranking Member Scott Hosts Event on Republicans’ Changes to Student Loan Program

ICYMI: Ranking Member Scott Hosts Event on Republicans' Changes to Student Loan Program

WASHINGTON - On Wednesday, Ranking Member Robert C. "Bobby" Scott (VA-03) hosted an event on changes to the student loan program as the Trump Administration begins to implement Republicans' "Big Ugly Bill." This follows Committee Democrats' request to hold an oversight hearing with the Office of Federal Student Aid (FSA) leadership on its ability to serve students and borrowers. Committee Republicans did not respond.

The Members were joined by Dr. Wil?Del Pilar, Senior Vice President, Education Trust; Clare McCann, Managing Director, Postsecondary Education & Economics Research; Jose Miranda, Senior Director of Federal External Affairs, The Institute for College Access and Success; and James Carroll, United States Student Association.

Watch the event on YouTube.

Here is a transcription of Ranking Member Scott's opening remarks:

"I want to thank everyone for joining us today, to discuss Education in the Crosshairs, Part III: What Dismantling the Department of Education Means for Students in terms of student loans.

"I am convening this event today because my colleagues and I asked the Chairman of the committee to invite the Office of Federal Student Aid to testify on the growing student loan crisis and the devastating impact that the Republicans' "Big Ugly Bill" has on students, borrowers, and families across this country. Regrettably, we have not received a response. So today, we are bringing together experts to help answer the questions that millions of borrowers, families, and frankly, many of us in Congress have been asking.

"The need for this event has become much more urgent. Earlier this year, Senator Sanders and I released a Government Accountability Office (GAO) report on the Department of Education's oversight of the federal student loan system. GAO found that the Administration has effectively ended oversight of the accuracy of information student loan servicers are providing to borrowers- leaving 43 million borrowers without the support that they need.

"Student loan debt now exceeds $1.7 trillion. Borrowers need clear guidance and certainty. Instead, they are forced to deal with uncertainty and chaos created by an Administration that has systematically weakened the federal student aid system. Moreover, the Administration has announced plans to transfer key Student Aid functions to the Department of Treasury, which has no expertise serving students or institutions of higher education or monitoring servicers for accuracy.

"Compounding the issues that have arisen from the dismantling of the Education Department are the sweeping changes to the student loan program, which Republicans passed in their "Big Ugly Bill." The law replaced income-driven repayment plans with a single, less affordable option that will increase monthly payments for many borrowers by as much as $200 a month. It also eliminated long-standing protections that prevented borrowers from carrying debt indefinitely. These changes come at the worst possible time, as millions of borrowers are experiencing delinquency and default for the first time in more than five years.

"The 'Big Ugly Bill' also makes college less affordable for the next generation of students. It eliminated Graduate PLUS loans, capped Parent PLUS loans, limited access to Pell Grants in certain situations, and created new lifetime borrowing limits that leave many students without enough federal aid to complete their education. Future nurses, teachers, social workers, firefighters, physical and occupational therapists, physicians, lawyers, and countless other professionals may now be forced to rely on high-interest private loans that offer fewer protections and can create even greater financial hardship, if they can get one.

"And unfortunately, the Department's recently finalized rule, which defines what a "professional degree" is, only doubles down on these harmful policies instead of using its authority to lessen their impact. It adopts an unnecessarily narrow definition that will further restrict access to affordable federal student loans. In fact, several states are currently suing the Department, and this definition is currently being blocked from implementation by a federal judge. In addition, my colleague Representative Bonamici and I, alongside other Congressional Democrats, have introduced a Congressional Review Act resolution to overturn this harmful rule.

"There is a better path forward. Democrats are working to lower the cost of college, strengthen federal aid, protect borrowers, and expand opportunity. We have introduced legislation, such as the Lowering Obstacles to Achievement Now (LOAN) Act, to preserve and expand the Pell Grant, improve repayment options, strengthen Public Service Loan Forgiveness, and make higher education more affordable and accessible for students, and other bills are also pending [that] address interest rates specifically

"Today's event is an opportunity to examine how the dismantling of the federal student aid system, combined with harmful new student loan policies, [is] affecting millions of American students. It is also an opportunity to hear directly from experts about what Congress should be doing to protect borrowers instead of making their financial burdens heavier."

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