Canceling student debt hurts middle-class Americans

By Mariannette Miller-Meeks  

When I left home at 16 to pursue my dream of becoming a doctor, no one in my family of 10 had ever gone to college. I knew that my education would be costly and that student loans would probably be required. So, I started working evening and night shifts and enrolled in community college which was the most affordable option. After enlisting at 18 and with my service in the United States Army, working evening and nights, and a balanced budget, I was able to pay back my student loans in a timely manner. 

Student loans allow millions of students across the country to receive a college education to pursue their dream careers. However, when one takes out a student loan, they have a responsibility to pay the loan back, just like a mortgage or bank loan. Many people who take out a loan to pay for college though do not know the full extent and responsibilities of the loan, the income that their career choice may generate and have debt that seems suffocating. 

That is why I introduced the Know Before You Owe Federal Student Loan Act of 2022, which would require universities to provide loan counseling to students seeking federal loans. This bill would help ensure that students are equipped to make the financial commitment. Additionally, it would provide students with ways to reduce the amount of student loan borrowing, such as scholarships and work study programs.

President Biden’s decision to forgive college student loans does nothing to alleviate the problem of college tuition and fees increasing exponentially. This decision is irresponsible, it’s unfair, and undercuts students who work to afford tuition, choose less expensive educational institutions and parents who for years saved money to offer their children the opportunity of a college education. 

This is a debt transfer and places the burden of repaying loans on those who chose not to pursue a college education and on those who are responsibly paying back their own debt. The Biden administration originally ignored requests from the media about how much this plan would cost taxpayers saying that it would not raise taxes.

However, last week the Department of Education released a statement that this decision will cost taxpayers $30 billion annually over the next decade and a study by Penn Wharton estimates that total plan costs could exceed $1 trillion, which will require even greater taxation and potentially slower economic growth through debt service at higher interest rates. At a time of 40-year record high inflation and $31 trillion in national debt, this additional spending will cost all of us, including hardworking Iowans, much more in taxes. 

I also joined Ranking Member of the U.S. House Education and Labor Committee, Virginia Foxx (NC-5) in a letter to the U.S. Government Accountability Office to review the action taken by the administration to determine if this action is legal. Any action that costs the taxpayers an estimated $469 billion to $519 billion requires a formal submission to Congress. 

Instead of doing a one-time cancelation that only affects certain groups, the Biden administration should prioritize lowering the cost of college and expanding resources for those taking out loans to fully understand the commitment.  

Mariannette Miller-Meeks is a resident of Ottumwa who currently represents Iowa’s Second District in the United States House of Representatives.