Student Loan Refinancing Act of 2026

The regulation of commerce, including credit and lending, is a power constitutionally vested in Congress under Article I, Section 8, Clause 3. Refinancing federal student loans falls within the scope of that commerce power, as it concerns a system of federal credit that the government has created and manages. However, the legislation must be carefully confined to loans originated by the federal government under the Higher Education Act; any extension to private loans not backed by the United States could exceed the legitimate bounds of the commerce clause and intrude upon powers reserved to th…

The Constitution grants Congress only those powers enumerated in Article I, Section 8. Nowhere does it authorize the federal government to directly involve itself in the refinancing of student loans, which is a matter of private contract and state-regulated education. The general welfare clause does not empower Congress to create such a program, as it is limited to spending for the common defense and general welfare, not to regulate or refinance loans. The Tenth Amendment reserves all powers not delegated to the United States to the states or the people. This bill exceeds the limited federal s…

The proposed amendment to the Higher Education Act of 1965, which provides for refinancing of federal student loans, exceeds the limited and enumerated powers delegated to Congress by the Constitution. The power to regulate education or to establish and manage student loan programs is not among the powers expressly granted in Article I, Section 8. The General Welfare Clause, as I argued in Federalist No. 41, is not an independent grant of authority but is tied to the other enumerated powers, such as taxation for the common defense and general welfare in a manner consistent with the specific en…

This bill proposes to amend the Higher Education Act of 1965 to allow refinancing of federal student loans. The Constitution grants Congress the power to provide for the general welfare and to regulate commerce among the several states. The refinancing of federal student loans falls within the scope of Congress's authority under the Spending Clause (Article I, Section 8, Clause 1) to provide for the general welfare, as it directly affects the financial well-being of citizens and the national economy. Additionally, under the Necessary and Proper Clause (Article I, Section 8, Clause 18), Congres…