U.S. Sen. Elizabeth Warren (D-MA) led more than 75 of her Congressional colleagues in urging President Joe Biden to swiftly deliver on his promise to deliver student debt cancellation to working and middle class families by early 2024.
“We are extremely disappointed and concerned that the Supreme Court substituted politics for the rule of law to deny as many as 43 million hard working Americans life-changing relief from crushing student loan debt. In the wake of this outrageous decision, we appreciate your announcement initiating a rulemaking under the Higher Education Act of 1965 to deliver on debt relief and write to urge you to swiftly carry out your commitment to working and middle class families, and cancel student debt by early 2024,” Warren and her colleagues wrote in a letter to Biden.
Last year, Biden laid out a plan to cancel up to $20,000 in student debt for working Americans would provide targeted relief to families. An estimated 90 percent of relief dollars would go to borrowers earning less than $75,000 a year, while an estimated 20 million people would have seen their student debt balances eliminated entirely. However, that effort was blocked by the Supreme Court.
“Nearly one-third of Americans who hold student debt have no degree or credential. Roughly 16 percent of borrowers – including almost one third of senior citizens holding student debt – are in default, with disastrous consequences for their credit and financial health, including the garnishment of wages and government benefits. In fact, nearly three million people over the age of 62 owed more than $110 billion in federal student loans, putting seniors at risk of having their Social Security benefits garnished. More than a third of borrowers eligible for student debt cancellation under your plan are age 40 or older,” the lawmakers added.
The lawmakers commended Biden’s efforts in providing a 12-month “on-ramp” for resuming student loan payments starting in October 2023. However, they also expressed concerns that these repayments will place large burdens on borrowers. They are urging the Department of Education to ensure the implementation of the final rule to provide debt relief does not happen after the 12-month on-ramp ends to help reduce the risk of further delinquency and default.
“Although the Supreme Court has chosen to stand in the way of your initial student debt relief plan, we recognize that as President of the United States, you have additional tools to provide relief. Working and middle class families need this relief to come as soon as possible. We urge you to continually find ways to use your authority to bring down student debt, address the rising cost of college, and make postsecondary education affordable for all students who choose that path,” the letter concluded.