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Monday, October 7, 2024

Steel urges adherence to law on student debt cancellation

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U.S. Rep. Michelle Steel representing California's 45th Congressional District | Official U.S. House headshot

U.S. Rep. Michelle Steel representing California's 45th Congressional District | Official U.S. House headshot

In a letter to Secretary of Education Miguel Cardona, Rep. Michelle Steel (CA-45) has called on the Department of Education to adhere to congressional intent in administering the Public Service Loan Forgiveness (PSLF) program. Reps Burgess Owens (R-UT), Julia Letlow (R-LA), and Erin Houchin (R-IN) also joined in sending the letter.

The Department of Education released a request for information in June outlining the Administration’s intent to expand public service loan forgiveness eligibility to private, for-profit early childhood education providers. As written by Congress, the program is intended for individuals employed by the government or non-profit employers.

“Absent authorization from Congress, this expansion of eligibility would violate federal law,” wrote Rep. Steel. “The Department’s decision to solicit feedback on how it may circumvent the statutory requirements continues the Biden administration’s record of placing a bad-faith political agenda above the law and breaks starkly with Congress’ original intent.”

“This administration’s undying effort to use taxpayer dollars to cancel student debt represents a blatant disregard for federal courts’ recent checks on the Department’s intrusion on Congressional authority. As this administration continues to test the limits of the Department’s authority, I urge you to strictly adhere to Congressional intent and the obligations outlined under the Administrative Procedures Act,” Rep. Steel added.

Since 2021, the Public Service Loan Forgiveness Program has cost taxpayers nearly $70 billion. Expanding eligibility to private for-profit employers would yield a significant economic impact despite any clear statutory authority.

You can view the full letter to Secretary Cardona here.

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