'Buying more votes': Joe Biden slammed over proposed plan against junk fees in higher education

WASHINGTON, D.C.: The Biden administration has recently announced its intention to address the issue of junk fees that often burden college students and student loan borrowers.

According to The Hill, President Joe Biden’s initiative targets four specific types of junk fees, namely, student loan origination fees, college banking junk fees, automatic charges for textbooks, and colleges retaining leftover funds from a student’s meal plan.

These fees have long been a source of concern for students and this move from the White House is expected to bring substantial relief to them.

What did Biden administration announce on Friday?

“Each year, students — including Federal student loan borrowers — incur billions in fees or additional unseen costs for unused meal account funds, using a college-sponsored credit card or banking account, paying for textbooks, or simply taking out a loan to pay for school,” the Biden administration stated.

“Additionally, students aren’t always provided clear and upfront opportunities to avoid fees for services they do not want. Obscured costs and misleading practices aren’t just frustrating — they cost millions of students and borrowers money,” they continued.

The 2025 budget proposal presented by the President of the United States seeks to eliminate student loan origination fees, which can range from 1% to 4% for borrowers and result in a significant debt burden.

The Department of Education is engaged in a negotiated rulemaking process that aims to address college banking fees, which can be imposed by colleges requiring students to use particular banking institutions to receive their financial aid.

The fees charged by these institutions have been identified as surprisingly high and often hidden, and the Department seeks to provide students with greater transparency and control over their financial obligations.

Additionally, the negotiated rulemaking process is considering regulations that would permit students to opt out of automatic billing for textbooks, allowing them to seek more affordable alternatives.

Finally, the Department is exploring the possibility of providing refunds to students for unused meal plan balances, rather than allowing the school to retain the leftover funds.

“The fees targeted in today’s announcement may be imposed multiple times during the college or graduate school experience,” the White House noted.  

The administration noted that these initiatives will build on the president's past efforts to prevent educational institutions from withholding transcripts to make the expense of college-goers more transparent.

Internet unenthused with Biden administration's Friday announcement towards transparent education costs

People on X were far from happy as the White House declared its intention to take action against junk fees for college students and student loan borrowers.

One X user remarked: "Buying more votes."

Another user claimed: "@JoeBiden and @TheDemocrats won't make the banks or universities pay. They'll make the US taxpayer pay."

 

Another user snarked: "Wow, tackling the big issues. Peace in Ukraine? Nah Peace in Gaza? Nah Border security? Nah"

 

One user said: "What a complete waste of 4 years!"

Another X user quipped: "They should take action on resigning"

 

Finally, this user tweeted: "He’s really going out of his way to buy the young vote. In the meantime the middle and poor class struggle."

 

This article contains remarks made on the Internet by individual people and organizations. MEAWW cannot confirm them independently and does not support claims or opinions being made online.