Reps. Garamendi Joins Bonamici, Underwood, & Sens. Merkley, Alsobrooks in Effort to Overturn Student Loan Rule
WASHINGTON, D.C. – Yesterday, Congressman John Garamendi (CA-08) joined Rep. Suzanne Bonamici (D-OR), Sen. Jeff Merkley (D-OR), Rep. Lauren Underwood (D-IL), Sen. Angela Alsobrooks (D-MD), and Rep. John Mannion (D-NY), in introducing a Congressional Review Act (CRA) resolution to repeal the Department of Education’s finalized rule that caps federal student loans and overhauls the student loan system.
The final rule unnecessarily limits the definition of a professional degree for the purpose of establishing federal loan caps, which will force future nurses, social workers, teachers, firefighters, physical and occupational therapists, and many others to turn to often predatory, high-interest private lenders to complete their degrees. It also officially eliminates the Grad PLUS program and creates new, less affordable loan repayment options for all borrowers. The CRA will be introduced as soon as the rule is officially received by Congress.
The final rule establishes an arbitrary list of 11 fields that are eligible for an aggregate borrowing limit of $200,000. Borrowers in programs excluded from the definition of “professional” – including nurses, social workers, teachers, firefighters, physical and occupational therapists, and more – will have a $20,500 annual borrowing limit and a $100,000 aggregate borrowing limit. This will worsen healthcare workforce shortages and disincentivize students from entering high-need fields where they might not be able to pay back the high costs of private loans.
Millions of borrowers with outstanding student loans will also see their required monthly payment amounts increase by hundreds of dollars, dramatically exacerbating the affordability crisis. Changes to student loan repayment include significantly higher monthly loan payments and a mandated $50 minimum monthly payment under the Tiered Standard Repayment Plan, rather than allowing for lower amounts when the lender and borrower agree. Together, these changes will disproportionately affect low- and middle-income students and families.
The full text of the CRA can be read here.
It is supported by: AASA, The School Superintendents Association; American Association of Colleges of Nursing (AACN); American Association of Nurse Anesthesiology (AANA); American Association of Nurse Practitioners (AANP); American College of Nurse-Midwives (ACNM); American Nurses Association (ANA); National Association of Pediatric Nurse Practitioners (NAPNP); National Association of Secondary School Principals (NASSP); National Association of Social Workers (NASW); National Education Association (NEA); the National League for Nursing (NLN); the PA Education Association; National Rural Health Association; and American Academy of Physician Associates.
In the House, the CRA is also cosponsored by Representatives Nanette Barragan (D-CA), Nikki Budzinski (D-IL), Janelle Bynum (D-OR), André Carson (D-IN), Troy Carter (D-LA), Joe Courtney (D-CT), Angie Craig (D-MN), Madeline Dean (D-PA), Rosa DeLauro (D-CT), Chris Deluzio (D-PA), Mark DeSaulnier (D-CA), Maxine Dexter (D-OR), Adriano Espaillat (D-NY), Dwight Evans (D-PA), Laura Friedman (D-CA), Adelita Grijalva (D-AZ), Jahana Hayes (D-CT), Jonathan Jackson (D-IL), Pramila Jayapal (D-WA), Rick Larsen (D-WA), John Larson (D-CT), Jennifer McClellan (D-VA), Betty McCollum (D-MN), Eleanor Holmes Norton (D-D.C.), Chris Pappas (D-N.H.), Chellie Pingree (D-ME), Deborah Ross (D-N.C.), Andrea Salinas (D-OR), Jan Schakowsky (D-IL), Lateefah Simon, Mark Takano (D-CA), Dina Titus (D-NV), Rashida Tlaib (D-MI), Paul Tonko (D-NY), Frederica Wilson (D-FL), and Becca Balint (D-VT).
A pdf copy of the signed letter can be found here.
###