On a largely party line vote, the House of Representatives passed H.J.Res. 45, which would overturn the Biden administration action on student loans. The bill passed under a closed rule and with limited debate on the House floor.

The resolution uses the Congressional Review Act to disapprove: the waiver used by the Department of Education to pause student loan payments during the pandemic; forgive up to $20,000 in student loan debt; and create a new Income-Driven Repayment plan for student loan borrowers. The joint resolution has a Senate companion resolution, which even if enacted, President Joe Biden has said he would veto. 

Proponents of the resolution say the administration has overstepped its authority and will be charging taxpayers like “blue-collar workers who never stepped foot on a college campus” to cover the cost of the loan forgiveness. Opponents of the resolution say almost all of the loan forgiveness helps borrowers and families making less than $75,000 a year and that none goes to the top 5% of income earners.  

If the bill were enacted, borrowers would immediately need to return to repayment.  Loan servicers are currently preparing for resumption of repayments in September. Either way, the fate of student loan forgiveness is now in the hands of the Supreme Court.