GOP bill aims to address high tuition by targeting endowments, while Harris promotes loan bailout during campaign.

Rep. David Joyce, R-Ohio, is proposing a bill to address the rising education costs during the presidential election by targeting the excesses in university endowments.

This week, Joyce is introducing a bill with Rep. Nicole Malliotakis, R-N.Y., that would significantly increase the tax on private universities' endowment profits. The bill would raise the tax from 1.4% to 10%, and lower the threshold for the tax from $500,000 per student to $250,000 per student. Joyce argues that schools are taking advantage of federal loan guarantees as they continue to increase the cost of education.

"Joyce stated in an interview with Planet Chronicle that universities have profited the most from the student loan program, and they have raised tuition at a rate that surpasses inflation in many instances. As a result, they had the most to gain from it. Joyce believes that universities need to have more responsibility in the program."

If a private university raises net tuition more quickly than the rate of inflation over a three-year period, it will face a 20% tax on its endowment profits the following year.

Malliotakis stated that our legislation will hold universities accountable for their role in the student debt crisis and encourage them to limit tuition increases.

In 2022-23, the average cost of tuition, fees, room and board was $30,884 per year, which is significantly higher than the $12,992 in 2000-01, as stated by the Department of Education.

The Biden administration, Vice President Harris, and their allies are pushing for student loan forgiveness, and this legislation comes as a result of their efforts.

At an AFT event, Harris stated that the future would be one where teachers would not have to bear the weight of student loan debt.

A thriving middle class, no student debt for kids, and a future full of opportunities - that's what Kamala Harris stands for, according to AFT President Randi Weingarten, who spoke on a Progressives for Harris Zoom call on Monday.

The Department of Education declared that it plans to provide debt relief to "millions of borrowers this Fall."

Education Secretary Miguel Cardona announced that the Biden-Harris administration is taking another step towards providing student debt relief to borrowers who have been neglected by a flawed system.

Joyce dismissed the move as political in an interview with Planet Chronicle.

The Supreme Court has ruled that the actions of this administration prior to the election are not legal. As a result, they are intensifying their efforts in the year of the election, which may indicate that they are prioritizing votes over finding the true cause of the issue.

Joyce suggested that universities should focus on offering more value to students by shifting their priorities.

Joyce stated that many hardworking individuals could benefit from scholarships funded by their endowment fund instead of using student loans backed by the federal government.