On Tuesday’s broadcast of CNN’s “At This Hour,” White House Council of Economic Advisers Chair Cecilia Rouse stated that President Joe Biden is pushing for state governments to use some of their funds from the American Rescue Plan “to help re-subsidize their higher education systems,” and that way, “instead of passing on the costs of higher education to the students and their families, it’s more borne by the taxpayers as well.”
After a discussion on possible student loan forgiveness and extending the pause on student loan payments by the Biden administration, host Kate Bolduan asked, “And you also, though, acknowledge that this whole discussion, though, is really a band-aid given that it does nothing to address the core issue that is the exorbitant cost of higher education?”
Rouse answered, “Absolutely. That’s why the president is also considering other reforms to the federal loan program, wants to bolster income-driven repayment, and also encouraging state governments to use some of their American Rescue Plan funds to help re-subsidize their higher education systems, so that, instead of passing on the costs of higher education to the students and their families, it’s more borne by the taxpayers as well.”
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