Urge President Biden to Provide Relief to Students -- Join Members of Congress in the Call to Tackle Student Debt

Millions of Americans find themselves drowning in student debt. Federal student loans impose a substantial burden on students across generations. From recent graduates to working professionals, 43 million Americans owe nearly $1.7 trillion in student loan debt. Yet, college is known to be an important step in achieving a higher income and financial freedom. American students and young professionals shouldn’t be subject to an almost predatory lending environment in order to have a solid chance in the economy. 

Student loan payments were scheduled to resume in October 2021, and President Biden has been under pressure to act swiftly because many still find it difficult or impossible to make their payments due to the ways the COVID-19 pandemic has impacted our current economy. As of August 6th, President Biden has agreed to extend the moratorium. He has also agreed to grant automatic student loan forgiveness to 323,000 borrowers with permanent disabilities.  While this will help many struggling Americans, in order to have a real impact, he should go one step further and also agree to proposals forgiving student loans; this can be done either through inclusion in reconciliation or executive action, but it should be done. 

We believe he should cancel up to $50,000 of debt for individual federal borrowers.

Congressional Democratic leaders are advocating hard with the White House to move forward with a proposal to cancel student loan obligations via an Executive Order, arguing that the very same reasons to extend the moratorium are the same reasons to cancel student loan debt entirely, which would provide necessary financial relief for millions of Americans in the midst of Covid-19.

• Paying off $1.7 trillion is nearly insurmountable, especially in the midst of the COVID-19 pandemic where many are still struggling to find employment again.
• Student loan debt is now the second-highest form of consumer debt; if borrowers could have some or all of their student loans forgiven, they could start life after college without the overwhelming burden of student loans. This would provide some intergenerational equity.
• Senators Schumer and Warren are renewing their call for President Biden to cancel up to $50,000 of student loans. “I believe that they are understanding every week how important this is for the economy, for the people of America,” Schumer said. Warren also noted that “what’s different right now is that we are two months away from payments restarting for 30 million Americans... The president can avoid that, and that’s important both family by family, but also for our economy.” 
• Student loan borrowers who struggle are disproportionately from lower-income families, first generation students, and students of color.
• Student debt cancellation would also mean closing the racial wealth gap in ways not seen in recent history. Black students in particular face enormous challenges; four years after graduation, they can often owe nearly double what white graduates owe.
• Brookings says even in pandemic employment recovery, Black workers are still behind the numbers seen in white workers-- making it harder to resume repaying student debt.
• Congress bailed out corporations and gave breaks to billionaires in response to the pandemic, without much delay. Now, it’s time to help struggling Americans.

President Biden has committed to building back American society more fairly and inclusively through legislation, such as his American Jobs Plan and American Families Plan. UUSJ endorses a faithful compassionate recovery, and we strongly believe the president should continue to do so through the American Rescue Plan and other vehicles of action.

President Biden has taken important steps towards providing relief, but he can go further to truly make an impact by canceling up to $50,000 of debt for all individual borrowers with federal educational debt. With the stroke of a pen, he can bring life-changing relief to tens of millions of Americans struggling with student loan debt. ​​With his support legislation could be developed. There are multiple bills referring to this issue; some are more specific, such as H.R. 2418 forgiving loans of healthcare workers, or H.R. 4293 focused on young entrepreneurs, yet there are broader measures relating to the issue and better reflecting the principle, H.Res. 100 by Congresswoman Ayanna Pressley, and S.Res. 46 by Majority Leader Schumer.

Related Resources:

• Biden administration grants automatic student loan forgiveness to 323,000 permanently disabled borrowers 
• Biden extends pause on student loan payments to 2022
• Schumer And Warren Ask Biden To Cancel Student Loans, But This Is The Real Takeaway on Student Loan Cancellation
• 5 Reasons To Cancel Student Loans
• The student debt burden and its impact on racial justice, borrowers, and the economy
• Calling Forth Seeds of Justice and Shared Well-being from the Ashes of Crisis: Recommendations for a Faithful Recovery