PRESS RELEASE: DFI Leads Coalition to Challenge Biden Administration’s Plan to Rush Changes to Income-Driven Repayment

WASHINGTON—The Defense of Freedom Institute for Policy Studies (DFI) today issued a coalition letter to Education Secretary Miguel Cardona requesting an extension of the period for the public to submit comments on the U.S. Department of Education’s planned overhaul of Income-Driven Repayment (IDR). A diverse group of organizations and education policy experts signed the letter. The Department has allowed only 30 days for the public to comment on its rule, rather than the 60 days recommended by Executive Orders 12866 and 13563. 

The proposed changes to IDR would limit how much of their debt student loan borrowers are required to repay, thus inflicting more costs on taxpayers. Independent analysis forecasts that the IDR rule could cost taxpayers more than $520 billion, and this cost would rise even higher if the U.S. Supreme Court overturns the President’s mass student loan cancellation plan. Yet, the Department, which recently failed an audit conducted by an independent auditor, estimates the budgetary impact of the rule at $137.9 billion. The Department has not provided estimates of how this proposal would accelerate rising costs of attending college, and it has also failed to estimate the inflationary effect of the proposed IDR rule on the economy.  

The groups that joined DFI’s call to extend the public comment period include American Commitment, Americans for Prosperity, Buckeye Institute, Committee for a Responsible Federal Budget, Family Research Council, Heritage Foundation, National Taxpayers Union, and Taxpayers Protection Alliance, as well as individual scholars and policy experts.

DFI President and Co-Founder Bob Eitel said, “This administration proposes to stick the taxpayers with a $500 billion bill but has given the public only 30 days to submit comments on a technical regulatory proposal. This is especially disturbing given that the Biden Education Department’s own auditors have refused to give the agency a clean audit due to its inept management of the federal student loan program. This is an agency that needs more public scrutiny, not less.” He continued, “DFI is proud to lead this coalition in standing up for transparency and against haphazard rulemaking that will severely damage the federal student loan program and stick taxpayers with a half trillion dollar tab.”

To read the coalition letter, click here. To read DFI’s public comment, click here.