House Republicans’ latest plan to improve the student loan system focuses on helping defaulted borrowers get back on track and adjusting income-driven repayment plans.
North Carolina representative Virginia Foxx, the Republican who chairs the House education committee, sponsored the Federal Assistance to Initiate Repayment (FAIR) Act along with Utah representative Burgess Owens and Michigan representative Lisa McClain, both Republicans.
The act would create one income-driven repayment plan, prevent excessive interest from accruing for distressed borrowers, end time-based forgiveness, require the department to provide more guidance to loan servicers and allow borrowers in default to enroll in an affordable repayment plan, according to a fact sheet.
The bill also would prevent the Biden administration from moving forward with its proposed income-driven repayment changes.
“The FAIR Act is a fiscally responsible, targeted response to the chaos caused by Biden’s student loan scam,” Foxx and the other co-sponsors said in a joint statement. “This Republican solution takes important steps to fix the broken student loan system, provide borrowers with clear guidance on repayment, and protect taxpayers from the economic fallout caused by the administration’s radical free college agenda.”
The FAIR Act is the latest proposal from congressional Republicans aimed at showing a different path forward to address the student debt crisis. Senate Republicans introduced their proposal earlier this week.
“The president’s radical guidance and reckless executive orders have left schools, servicers, and students uncertain about the future,” the joint statement says. “The pandemic is over, and borrowers need concrete guidance on a pathway forward to repayment.”