WASHINGTON — Today, United States Senator from Missouri, Josh Hawley, presented the Law requiring universities to pay — new legislation to reform the nation’s higher education funding system and make universities responsible for the solvency of future student loans and defaulting student debt.
Tuition fee increases consistently outpace the rise in inflation, the country’s student loan debt balance has soared to nearly $2 trillion, and poor student performance is seriously calling into question the Whether rising costs and indebtedness are worth the investment: Only about half of college students graduate within six years.
“For decades, universities have amassed billion-dollar endowments while teaching nonsense like men can get pregnant. While charging exorbitant tuition fees,” said Senator Hawley. “Now Joe Biden wants to give an extra $1 trillion to prop up the system. It’s wrong. Instead, it’s time to put universities on the hook and give students the information they need to make informed decisions.
On August 24, 2022, President Biden announced a series of executive actions on student loan debt. These actions usurp the powers granted to Congress in the Constitution, constitute an estimated $1 trillion transfer of wealth from those who have attended college to the majority of Americans who have not, and lack much-needed reforms to the the country’s failing higher education funding system.
of Senator Hawley Law requiring universities to pay will be:
- Going forward, require higher education institutions participating in the federal student loan program to pay 50% of any student loan balance in default.
- Higher education institutions are prohibited from increasing the cost of attendance to offset this liability unless there is an equivalent percentage decrease in the administrative expenses of the institution.
- Authorize the cancellation of student loan debt in the event of bankruptcy.
- Undergraduate student loan debt can be canceled five years after the first payment is due, while graduate student loan can be canceled fifteen years after the first payment is due.
- Require every institution of higher education participating in federal financial aid programs to publish graduate education outcomes, including average and median graduate earnings and student loan default rates, broken down by degree or degree program. studies.
In 2019, Senator Hawley introduced two bills aimed at breaking the higher education monopoly, providing more vocational training options and holding universities accountable for student outcomes.
Click here to see the text of the invoice for the Make universities pay the law.