My name is Neal McCluskey and I am the director of the Center for Educational Freedom at the Cato Institute, a nonprofit, non‐​partisan public policy research organization. My comments are my own, and do not represent any position of the institute.

First and foremost, I want to express my disappointment in the make‐​up of this committee. Not who is on it – I think every member seeks to represent their constituencies well – but who is not: representatives of the millions of taxpayers who will foot the bill for revenue lost due to decreased debt repayment.

Only about 14 percent of Americans ages 18 and above have current student loans. 23 percent have already repaid, and the large majority – 63 percent – have never had student loans. The committee should have a majority representing American taxpayers who have never had loans, but instead they have essentially no representation. This is especially concerning given that the average lifetime earnings for a bachelor’s degree or above, versus ending one’s education with a high school diploma, is between an additional $1.2 million and $3.1 million, depending on the level of degree.

People who attend college are poised to be major economic winners. They should pay the cost of investing in themselves, not taxpayers. They should also bear the risk of an overly expensive or poorly scrutinized investment – that incentivizes thoughtful, efficient education.

Alas, creating a committee composed overwhelmingly of people representing groups that will benefit from debt cancelation will actually hurt future, prospective college students. The promise of easy forgiveness will incentivize colleges to charge ever‐​higher sticker prices on the grounds that many students will feel they can accept those prices without having to actually pay them. A 2017 survey found that half of students expected at least some of their debt to be forgiven – what is being discussed by this committee could amplify that.

And who do skyrocketing prices hurt most? The people who most need help: those from low‐​income families, especially in areas where few people know how the student aid game works, who see giant sticker prices and rule schools out.

In other words, reducing the amount of loans that borrowers need to repay both hurts taxpayers and many of the people that federal student aid is supposed to help. And all of this is occurring through a bureaucratic process that is grossly undemocratic and a violation of constitutional separation of powers. It is the legislative branch, not the executive, that is charged with writing laws, including the major components of federal programs.

Thank you.