A resolution to urge Congress to repeal the William D. Ford Federal Direct Loan Program.
Impact
If passed, HR0288 would not directly amend state laws, as it targets a federal program; however, its resolution reflects a growing sentiment within state legislatures regarding the unsustainable nature of federal student debt. The resolution suggests that discontinuing this program could alleviate systemic issues contributing to the nation's economic woes by preventing the issuance of new federal student loans that many graduates cannot repay. The economic implications of student loan debt, particularly its impact on home ownership and overall economic activity, are central to the arguments presented in support of HR0288.
Summary
House Resolution 288 urges Congress to repeal the William D. Ford Federal Direct Loan Program, which offers various federal student loans to eligible borrowers. The proposers of this resolution—Reps. Fink, Bollin, and Jaime Greene—highlight significant concerns regarding the program, asserting that it has contributed to soaring tuition costs and a pervasive student loan debt crisis across the United States, affecting approximately 43 million borrowers and resulting in over $1.7 trillion in outstanding debt. They posit that this financial burden inhibits young Americans from major economic life decisions, such as purchasing homes and saving for retirement.
Contention
Notable points of contention surrounding HR0288 include the underlying belief that the federal student loan program, established to create access to higher education, has instead perpetuated a cycle of debt that is detrimental to economic stability. Critics of the program cite that despite its intentions, such loans have exacerbated tuition inflation, thus placing higher financial burdens on students and graduates. The proposed repeal of this program raises difficult questions regarding access to education and how to fund higher education without relying on federal loans, which advocates for education reform must address.
A concurrent resolution urging Congress to enact legislation to limit the interest rates collected or imposed by the United States Department of Education for certain federal student college loans.