Washington, DC — The US Supreme Court is hearing arguments today (Tuesday) over President Biden’s plan to forgive student loans, a plan Iowa Senator Chuck Grassley calls “reckless” and which would cost the federal government nearly one-trillion dollars.
Grassley, a Republican, says the student loan system is deeply flawed and students and families need help in making better-informed decisions about borrowing for college.
Grassley is introducing three bipartisan bills with Senator Tina Smith, a Democrat from Minnesota, which he says would offer more counseling, resources, and clarity to the student loan process. Grassley says Biden’s plan would erase ten- to 20-thousand dollars in debt for each student who qualifies, and millions may qualify.
Grassley says the trio of bills would ensure that students get the full picture when choosing a college and taking out a loan. From the initial college search, to the acceptance of financial aid, to counseling once in college, Grassley says the bills would help students avoid sticker shock, find the best college for their budget, and avoid taking out ill-advised, oversized loans. He says a societal change is forcing a shift in how we think about college.
Grassley says much of the student debt conversation is focused on repayment of that debt, while he says we need to fix the process on the front end before students get in over their heads. A news release from Grassley’s office says the three bills are:
The Understanding the True Cost of College Act would create a universal financial aid offer form and standardize terms used to describe financial aid to allow students to more easily compare financial aid packages between schools.
The Know Before You Owe Federal Student Loan Act would strengthen the Higher Education Act to enhance the current loan counseling requirements for institutions of higher education.
The Net Price Calculator Improvement Act would improve the effectiveness of and access to net price calculators.
