Three U.S. House Republicans say that President Biden’s plan to forgive as much as $20,000 per borrower of student loan debt is a “giveaway” to highly profitable universities. With the Higher Education Accountability Act, the lawmakers propose to raise the excise tax on investment income of private institutions from 1.7% to 10%. Universities that increased their net price of attendance by more than the rate of inflation over a three-year period would face a 20% tax. The bill would also lower an endowment’s per-student value threshold from $500,000 to $250,000. This would make more educational institutions subject to the tax. If the bill passes, the changes would take effect in 2023.
Our Blog 