- The House Financial Services Committee held a hearing on Tuesday to discuss protections for student loan borrowers, as well as other proposals that would ease student loan burdens.
- Comedian Hasan Minhaj testified during the hearing, noting that two-thirds of jobs require some college experience and that the cost of tuition has exponentially increased since the previous generation.
- Minhaj also blasted loan providers for “predatory” behaviors like convincing students to take out higher-costing loans.
House Committee Looks at Student Loan Protection Bills
The U.S. House Financial Services Committee listened to testimony in a hearing on Tuesday as they debated nine different potential bills that would afford stronger protections to people taking out student loans.
Though the committee did not vote on any of the bills, if passed, they would create a borrower bill of rights and would help borrowers buy their first homes.
Another bill, the CFPB Student Loan Integrity and Transparency Act, would strengthen the Consumer Financial Protection Bureau’s oversight by requiring it and the U.S. Department of Education to share student loan information with each other. It would also force lenders to work with an ombudsman, which is a government advocate for students struggling to repay federal education loans.
The Student Loan Servicing Reform and Consumer Protection Act, another proposed bill, would require lenders to provide accurate repayment options and resources for struggling student borrowers. It would also prevent lenders from omitting or misrepresenting loan serving information and would set minimum industry standards for all student loan transactions.
Currently, U.S. student debt sits at $1.6 trillion dollars, according to Forbes. The business magazine also reports the number of people taking out student loans in the U.S. at just under 45 million. Student loans are the second-highest consumer debt behind mortgages, and 20% of borrowers are behind on their loans.
Lawsuits and student loan providers are not a new combination. Common types of student loan lawsuits involve allegations of lenders convincing students to take out higher-costing payment plans or convincing them to overuse their forbearance, which is a process that allows students to postpone their payments if they’re struggling through other financial issues.
Under U.S. law, Congress sets the repayment terms for loans.
At the hearing yesterday, Chair of the House Financial Services Committee Maxine Waters criticized the current ombudsman, who is a former top official at the Pennsylvania Higher Education Assistance Agency, which is a loan provider that’s been the subject of similar lawsuits and state investigations.
On the other side of the aisle, Republican Andy Barr blamed Democratic policies for the debt.
“I know everyone wants a bogeyman,” he said, “and the student loan servicers are a convenient bogeyman, but guess what — look in the mirror Congress. Congress created this crisis.”
Democrats and Republicans, however, agree that there are serious issues surrounding student borrowers and debt. On Sep. 26, the House Financial Services Committee will discuss debt collection practices.
Hasan Minhaj Testimony
During the hearing, comedian and host of Patriot Act Hasan Minhaj testified before Congress, saying that even though he himself isn’t in debt, it is a serious issue facing his generation.
“I’m 33, and growing up, it was drilled into our heads: you gotta go to college if you want a middle-class job. And we even tell kids today, ‘Look, if you don’t go to college, you might as well get a face tattoo.’ And then they point to Post Malone, and we’re like, ‘Okay, that’s one guy.’”
Minhaj also argued that degrees are becoming a basic requirement for most jobs and that the previous generation spent far less on college.
“Two-thirds of all jobs require at least some college,” Netflix’s Patriot Act host said. “This is the standard now, and that wasn’t the case when most members of this committee were in school. And you paid far less for your degrees. That’s not speculation. We looked up where the 60 members of this committee went to college and what your school’s tuition was at that time, even adjusting for inflation, college cost way less across the board.”
Minhaj then went on to say a lot of borrowers are “treated like deadbeats, and he blamed the government for allowing “predatory” for-profit lenders to mislead borrowers. He noted that the Department of Education chooses what lenders a student uses. In turn, he said that means there’s no competition to create better services.
In February, Minhaj reported on student loans in Patriot Act, where he found that his audience, at the time of recording, had a student loan debt of over $6 million dollars.
Minhaj also referenced how desperate some people are becoming by going up to celebrities and asking them to pay off their student debt, a reference to announcements that both Taylor Swift and Lil Uzi Vert would both be paying off a few of their fans’ debt.
I think it’s a huge problem that the youth of America have to bombard their favorite rapper or pop musician and ask them to pay back their student loans. They’re not even asking for selfies anymore,” Minhaj said. “That’s how desperate student borrowers are.”
On average, the committee graduated college 33 years ago, but one representative in the room isn’t even that old yet.
During the hearing, Democrat Alexandria Ocasio-Cortez, 29, said she’s still paying off her college debt and made a display by reading her payment in front of the committee.
“I literally made a student loan payment while I was sitting here at this chair,” she said, “and I looked at my balance, and it was $20,237.16. I just made a payment that took me down to $19,000, so I feel really accomplished right now.”
According to Roll Call, her debt is actually less than the average student loan debt for a Congress member. Currently, 68 members of Congress have student loan debt either for themselves or a dependent, with the average debt being around $37,000. Eight members of Congress have more than $100,000 in debt.
Jan. 6 Rally Organizers Say They Met With Members of Congress and White House Officials Ahead of Insurrection
Two sources told Rolling Stone that they participated in “dozens” of meetings with “multiple members of Congress” and top White House aides to plan the rallies that proceeded the Jan. 6 insurrection.
Rolling Stone Report
Members of Congress and White House Staffers under former President Donald Trump allegedly helped plan the Jan. 6 protests that took place outside the U.S. Capitol ahead of the insurrection, according to two sources who spoke to Rolling Stone.
According to a report the outlet published Sunday, the two people, identified only as “a rally organizer” and “a planner,” have both “begun communicating with congressional investigators.”
The two told Rolling Stone that they participated in “dozens” of planning briefings ahead of the protests and said that “multiple members of Congress were intimately involved in planning both Trump’s efforts to overturn his election loss and the Jan. 6 events that turned violent.”
“I remember Marjorie Taylor Greene specifically,” the person identified as a rally organizer said. “I remember talking to probably close to a dozen other members at one point or another or their staffs.”
The two also told Rolling Stone that a number of other Congress members were either personally involved in the conversations or had staffers join, including Representatives Paul Gosar (R-Az.), Lauren Boebert (R-Co.), Mo Brooks (R-Al.), Madison Cawthorn (R-N.C.), Andy Biggs (R-Az.), and Louie Gohmert (R-Tx.).
The outlet added that it “separately obtained documentary evidence that both sources were in contact with Gosar and Boebert on Jan. 6,” though it did not go into further detail.
A spokesperson for Greene has denied involvement with planning the protests, but so far, no other members have responded to the report.
Previous Allegations Against Congressmembers Named
This is not the first time allegations have surfaced concerning the involvement of some of the aforementioned congress members regarding rallies that took place ahead of the riot.
As Rolling Stone noted, Gosar, Greene, and Boebert were all listed as speakers at the “Wild Protest” at the Capitol on Jan. 6, which was arranged by “Stop the Steal” organizer Ali Alexander.
Additionally, Alexander said during a now-deleted live stream in January that he personally planned the rally with the help of Gosar, Biggs, and Brooks.
Biggs and Brooks previously denied any involvement in planning the event, though Brooks did speak at a pro-Trump protest on Jan. 6.
Gosar, for his part, has remained quiet for months but tagged Alexander in numerous tweets involving Stop the Steal events leading up to Jan. 6, including one post that appears to be taken at a rally at the Capitol hours before the insurrection.
Notably, the organizer and the planner also told Rolling Stone that Gosar “dangled the possibility of a ‘blanket pardon’ in an unrelated ongoing investigation to encourage them to plan the protests.”
Alleged White House Involvement
Beyond members of Congress, the outlet reported that the sources “also claim they interacted with members of Trump’s team, including former White House Chief of Staff Mark Meadows, who they describe as having had an opportunity to prevent the violence.”
Both reportedly described Meadows “as someone who played a major role in the conversations surrounding the protests.”
The two additionally said Katrina Pierson, who worked for the Trump campaign in both 2016 and 2020, was a key liaison between the organizers of the demonstrations and the White House.
“Katrina was like our go-to girl,” the organizer told the outlet. “She was like our primary advocate.”
According to Rolling Stone, the sources have so far only had informal talks with the House committee investigating the insurrection but are expecting to testify publicly. Both reportedly said they would share “new details about the members’ specific roles” in planning the rallies with congressional investigators.
See what others are saying: (Rolling Stone) (Business Insider) (Forbes)
Jan. 6 Committee Prepares Criminal Charges Against Steve Bannon for Ignoring Subpoena
The move comes after former President Trump told several of his previous aides not to cooperate with the committee’s investigation into the insurrection.
Bannon Refuses to Comply With Subpoena
The House committee investigating the Jan. 6 insurrection announced Thursday that it is seeking to hold former White House advisor Steve Bannon in criminal contempt for refusing to comply with a subpoena.
The decision marks a significant escalation in the panel’s efforts to force officials under former President Donald Trump’s administration to comply with its probe amid Trump’s growing efforts to obstruct the inquiry.
In recent weeks, the former president has launched a number of attempts to block the panel from getting key documents, testimonies, and other evidence requested by the committee that he claims are protected by executive privilege.
Notably, some of those assertions have been shut down. On Friday, President Joe Biden rejected Trump’s effort to withhold documents relating to the insurrection.
Still, Trump has also directed former officials in his administration not to comply with subpoenas or cooperate with the committee.
That demand came after the panel issued subpoenas ordering depositions from Bannon and three other former officials: Chief of Staff Mark Meadows, Deputy Chief of Staff Dan Scavino, and Pentagon Chief of Staff Kash Patel.
After Trump issued his demand, Bannon’s lawyer announced that he would not obey the subpoena until the panel reached an agreement with Trump or a court ruled on the executive privilege matter.
Many legal experts have questioned whether Bannon, who left the White House in 2017, can claim executive privilege for something that happened when he was not working for the executive.
Panel Intensifies Compliance Efforts
The Thursday decision from the committee is significant because it will likely set up a legal battle and test how much authority the committee can and will exercise in requiring compliance.
It also sets an important precedent for those who have been subpoenaed. While Bannon is the first former official to openly defy the committee, there have been reports that others plan to do the same.
The panel previously said Patel and Meadows were “engaging” with investigators, but on Thursday, several outlets reported that the two — who were supposed to appear before the body on Thursday and Friday respectively — are now expected to be given an extension or continuance.
Sources told reporters that Scavino, who was also asked to testify Friday, has had his deposition postponed because service of his subpoena was delayed.
As far as what happens next for Bannon, the committee will vote to adopt the contempt report next week. Once that is complete, the matter will go before the House for a full vote.
Assuming the Democratic-held House approves the contempt charge, it will then get referred to the U.S. Attorney for the District of Columbia to bring the matter before a grand jury.
See what others are saying: (CNN) (The Washington Post) (Bloomberg)
Senate Votes To Extend Debt Ceiling Until December
The move adds another deadline to Dec. 3, which is also when the federal government is set to shut down unless Congress approves new spending.
Debt Ceiling Raised Temporarily
The Senate voted on Thursday to extend the debt ceiling until December, temporarily averting a fiscal catastrophe.
The move, which followed weeks of stalemate due to Republican objections, came after Senate Minority Leader Mitch McConnell (R-Ky.) partially backed down from his blockade and offered a short-term proposal.
After much whipping of votes, 11 Republicans joined Democrats to break the legislative filibuster and move to final approval of the measure. The bill ultimately passed in a vote of 50-48 without any Republican support.
The legislation will now head to the House, where Majority Leader Steny Hoyer (D-Md.) said members would be called back from their current recess for a vote on Tuesday.
The White House said President Joe Biden would sign the measure, but urged Congress to pass a longer extension.
“We cannot allow partisan politics to hold our economy hostage, and we can’t allow the routine process of paying our bills to turn into a confidence-shaking political showdown every two years or every two months,’’ White House Press Secretary Jen Psaki said in a statement.
Under the current bill, the nation’s borrowing limit will be increased by $480 billion, which the Treasury Department said will cover federal borrowing until around Dec. 3.
The agency had previously warned that it would run out of money by Oct. 18 if Congress failed to act. Such a move would have a chilling impact on the economy, forcing the U.S. to default on its debts and potentially plunging the country into a recession.
Major Hurdles Remain
While the legislation extending the ceiling will certainly offer temporary relief, it sets up another perilous deadline for the first Friday in December, when government funding is also set to expire if Congress does not approve another spending bill.
Regardless of the new deadline, many of the same hurdles lawmakers faced the first time around remain.
Democrats are still struggling to hammer out the final details of Biden’s $3.5 trillion spending agenda, which Republicans have strongly opposed.
Notably, Democratic leaders previously said they could pass the bill through budget reconciliation, which would allow them to approve the measure with 50 votes and no Republican support.
Such a move would require all 50 Senators, but intraparty disputes remain over objections brought by Joe Manchin (D-W.V.) and Kyrsten Sinema (D-Az.), who have been stalling the process for months.
Although disagreements over reconciliation are ongoing among Democrats, McConnell has insisted the party use the obscure procedural process to raise the debt limit. Democrats, however, have balked at the idea, arguing that tying the debt ceiling to reconciliation would set a dangerous precedent.
Despite Republican efforts to connect the limit to Biden’s economic agenda, raising the ceiling is not the same as adopting new spending. Rather, the limit is increased to pay off spending that has already been authorized by previous sessions of Congress and past administrations.
In fact, much of the current debt stems from policies passed by Republicans during the Trump administration, including the 2017 tax overhaul.
As a result, while Democrats have signaled they may make concessions to Manchin and Sinema, they strongly believe that Republicans must join them to increase the debt ceiling to fund projects their party supported.
It is currently unclear when or how the ongoing stalemate will be resolved, or how either party will overcome their fervent objections.