Fond Du Lac Times

Congressman Glenn Grothman (WI-06) is pleased to announce that two of his bills, the Responsible Borrowing Act and the Protecting Taxpayers from Student Loan Bailouts Act, have been incorporated into the College Cost Reduction Act. This comprehensive legislation aims to lower college costs for students and families and was produced by the House Committee on Education and the Workforce in consultation with various stakeholders.

The Responsible Borrowing Act, which has received endorsements from Moraine Park Technical College President Bonnie Baerwald and the National Association of Student Financial Aid Administrators (NASFAA), seeks to promote fiscal responsibility among student borrowers. The bill allows institutions of higher education to implement guardrails on the amount of money students can borrow. Representative Grothman explains, "Far too often, students are borrowing exorbitant amounts of money – more than they need – which can lead to a lifetime of financial hardship." This bill aims to protect students from taking on excessive student loan debt that could burden them for decades.

On the other hand, the Protecting Taxpayers from Student Loan Bailouts Act addresses the Biden administration's attempts to transfer the burden of student loan debt to taxpayers. The bill requires the Department of Education to review the fiscal impact of any future plans to forgive student loan debt to ensure that costs to the federal government do not increase, ultimately safeguarding taxpayers from shouldering the bill.

Representative Grothman expresses his gratitude for Chairwoman Foxx for including his two initiatives as key components of the College Cost Reduction Act. He states, "These measures reflect our dedication to supporting students in pursuing higher education without compromising the interests of the taxpayers."

The Responsible Borrowing Act aims to address the issue of overborrowing by allowing universities to limit the amount of federal loans that enrolled students can borrow. This will help reduce the risk of unnecessary debt for students. Institutions would be able to set limits based on various conditions such as average salaries for typical occupations pursued by graduates, enrollment status, credential level, and program year. Under special circumstances, institutions would also have the flexibility to increase the borrowing limit.

The College Cost Reduction Act itself has several objectives. It ensures clear and personalized information about costs and return on investment for prospective students and their families. Additionally, it holds institutions financially responsible for overpriced degrees that leave students with unaffordable debt. The act also emphasizes funding colleges based on student outcomes rather than burdening them with excessive regulations that increase costs for families.

Representative Grothman has been actively involved in addressing student loan issues. In August 2022, he introduced the Fairness for Responsible Borrowers Act to clarify that the Biden administration does not have the authority to unilaterally forgive student loans. Additionally, in May 2022, Grothman led a letter to President Biden warning of the dire economic consequences of widespread student loan forgiveness.

Overall, the inclusion of Representative Grothman's bills in the College Cost Reduction Act highlights the commitment to responsible student loan borrowing and protecting taxpayers from shouldering the burden of student loan debt. The legislation aims to provide comprehensive solutions to lower college costs and support students in pursuing higher education without compromising their financial futures.