EDUCATION

Sen. Romney introduces bill to prevent cancellation of student loans

May 18, 2022, 8:40 PM | Updated: May 19, 2022, 10:21 am
Sen. Mitt Romney...
Sen. Mitt Romney, R-Utah, was among the state leaders who responded Wednesday to a plan by President Biden to forgive certain student loan debt. (AP Photo/Alex Brandon, File)
(AP Photo/Alex Brandon, File)

WASHINGTON — Utah Sen. Mitt Romney was among several senators on Wednesday to introduce the Student Loan Accountability Act. It is legislation that will prevent the cancellation of student loans by President Biden.

“It makes no sense for the Biden Administration to cancel nearly $2 trillion in student loan debt,” Romney said in a press release. “This decision would not only be unfair to those who already repaid their loans or decided to pursue alternative education paths. But it would be wildly inflationary at a time of already historic inflation. Democrats and Republicans alike have called on the President to not take this unwise step and pile more onto our $30 trillion national debt. And while the President’s legal authority in forgiving this debt is dubious at best, our bill would ensure that he would be prevented from taking action.”

In 2020, Harvard Law School researched whether the president had the authority to eliminate student loans and reported their findings to Sen. Elizabeth Warren (D-MA). They concluded that the Secretary of Education (nominated by the president and approved by the Senate) has the authority “for broad or categorical student debt cancellation.”

While President Biden has not made an official announcement, multiple news agencies report that he would like to move forward with student loan forgiveness. The Hill reports Mr. Biden may be considering eliminating at least $10,000 of student loan debt per borrower. 

Some Democrats in Congress have called for $50,000 of debt elimination per borrower. However, that may not include higher-earning Americans according to The Washington Post.

How the Student Loan Accountability Act works

  • It will prevent the federal government from canceling or forgiving any outstanding balances on covered loans.
  • It will also include exemptions for existing federal student loan forgiveness, cancellation, or repayment programs that currently fall under the Higher Education Act.

According to Romney and his colleagues, the cancellation of student loans will have a real impact. 

Think tanks such as the Heritage Foundation, claim that eradicating student debt would give colleges and universities an incentive to raise college tuition.

Romney and the other senators also say that it worsens inequality. According to a Brookings Institute study, roughly one-third of all student loan debt is carried by the wealthiest 20 percent of the country’s population. While 8% of student loan debt is owed by the bottom 20 percent.

A study by the Urban Institute found that 12% of college debt in America is held by low-income households.

Read more:

Today’s Top Stories

Education

u of u student arrested...
Waverly Golden

Other paths to consider when thinking about attending college

Following the student loan forgiveness announcement, college is on everyone's mind. Dave Noriega takes an in-depth look at the alternatives.
2 days ago
An electronic sign on the campus of the University of Utah was seen displaying pornography today....
Becky Bruce

Slight increase in crime on U of U campus from previous year, report says

There has been a slight increase in crime on campus over the previous year, according to a report released Friday by the University of Utah.
3 days ago
US President Joe Biden announces student loan relief on August 24, 2022 in the Roosevelt Room of th...
Betsy Klein and MJ Lee, CNN

Biden administration kicks off student loan debt forgiveness process

The Biden administration began its efforts aimed at student loan forgiveness on Thursday.
3 days ago
cline alpine board...
Lindsay Aerts

At Alpine school board meeting, Natalie Cline claims district allows porn in classrooms

Whether Cline, from the Utah Board of Education, can speak at the Alpine district meeting (where she doesn't reside) was questioned.
4 days ago
The wafer with the etched Book of Mormon on it, made by BYU students...
Samantha Herrera

BYU engineering students put ‘world’s smallest Book of Mormon’ on 4 inch disc

The entirety of the Book of Mormon is now on display on a gold-plated 4-inch disc in the Clyde Building at BYU. It'll last millions of years.
4 days ago
American Leadership Academy pictured....
Elizabeth Weiler

American Leadership Academy responds to homecoming incident

American Leadership Academy responded to allegations of body shaming and dress code at a high school homecoming dance.
4 days ago

Sponsored Articles

Young woman receiving laser treatment...
Form Derm Spa

How facial plastic surgery and skincare are joining forces

Facial plastic surgery is not only about looking good but about feeling good too. The medical team at Form Spa are trained to help you reach your aesthetic outcomes through surgery and through skincare and dermatology, too.
large group of friends tohether in a park having fun...
BYU MBA at the Marriott School of Business

What differentiates BYU’s MBA program from other MBA programs

Commitment to service is at the heart of BYU’s MBA program, which makes it stand out among other MBA programs across the country.
a worker with a drill in an orange helmet installs a door in the house...
Price's Guaranteed Doors

Home improvement tip: Increase the value of your home by weatherproofing doors

Make sure your home is comfortable before the winter! Seasonal maintenance keeps your home up to date. Read our tips on weatherproofing doors.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
A paper reading IRS, internal revenue service is pictured...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Sen. Romney introduces bill to prevent cancellation of student loans