The Trump-McMahon Department of Education (DOE) has moved to end the last of the Biden administration’s large-scale, illegal federal student loan bailout programs.
DOE announced its agreement with Missouri to end the Saving on a Valuable Education (SAVE) Plan, which was set to cost taxpayers almost $350 billion in a decade’s time. The Dec. 9 press release celebrated the move as being not only a win for taxpayers, but necessary clarity for borrowers duped by extravagant and unrealistic Democrat promises.
Why should waitresses, construction workers, plumbers, and other hardworking Americans pay off the college degrees of strangers? The federal government already funnels far too much money into higher education as it is. In fact, federal involvement in universities is what has driven up prices and spread wokeness for decades.
For Our VIPs: Minnesota Students Who Protested ICE Have Awful Test Scores
DOE condemned the actions of the previous presidential administration:
Without congressional authorization, the Biden Administration misled millions of borrowers into the illegal SAVE Plan with false promises of artificially low monthly payments – oftentimes as low as $0 – and a short timeline to student loan “forgiveness.” The SAVE Plan would have cost taxpayers, many of whom did not attend college or already repaid their student loans, more than $342 billion over ten years.
Students will no longer be able to enroll in the SAVE Plan, and all pending applications as of this time will be denied. All current SAVE borrowers will have to shift over into legal plans, the DOE press release added.
The agreement is waiting on court approval. DOE noted with satisfaction that when it becomes official, the agreement will provide certainty for some 7 million borrowers and put an end to the last of the Biden administration’s illegal student loan bailout initiatives.
Read Also: Court Upholds Trump’s Trans Military Ban
It has become far too easy in recent years to apply for and receive federal student loan aid. I personally have spent most of this year proving over and over to a DOE contractor that a stranger took out loans fraudulently in my name, using fake information and a typed signature. Reform is urgently needed.
DOE emphasized the injustice of the SAVE Plan. “For four years, the Biden Administration sought to unlawfully shift student loan debt onto American taxpayers, many of whom either never took out a loan to finance their postsecondary education or never even went to college themselves, simply for a political win to prop up a failing Administration,” said Under Secretary of Education Nicholas Kent. He added:
The Trump Administration is righting this wrong and bringing an end to this deceptive scheme. The law is clear: if you take out a loan, you must pay it back. Thanks to the State of Missouri and other states fighting against this egregious federal overreach, American taxpayers can now rest assured they will no longer be forced to serve as collateral for illegal and irresponsible student loan policies.
Missouri Attorney General Catherine Hanaway agreed, “Unilaterally saddling taxpayers with someone else’s Ivy League debt ignored Congressional authority and was clearly unlawful. We appreciate President Trump’s real, long-term solutions instead of illegal student loan schemes.” Sanity is returning to U.S. education policy.
Editor’s Note: Support and follow PJ Media’s coverage of breaking news and Trump administration reforms. Join PJ Media VIP and use promo code FIGHT to get 60% off your membership.
Join the conversation as a VIP Member