The Center for Responsible Lending applauds Majority Leader Chuck Schumer, Senator Elizabeth Warren; Representatives Pressley, Adams, Bowman, Jones, Omar, and Torres; and Chairwoman Waters for their bicameral resolution urging President Biden to take executive action to cancel up to $50,000 in federal student loan debt using legal authorities already granted by Congress. Cancelling student debt will provide both immediate financial relief to millions of Americans and crucial economic stimulus for everyone during this protracted crisis. This action would also boost GDP and job creation at a time of intense labor shocks and economic uncertainty.
As nearly 330 community, civil rights, climate, health, consumer, labor, and student advocacy organizations noted in a recent letter to the Biden-Harris administration:
- Student debt exacerbates existing racial inequities; cancellation will help reduce the racial wealth gap. Black Americans—and particularly Black women—are more likely to take on student loan debt and struggle with repayment.
- Cancellation will provide a much-needed economic stimulus. Research shows that student debt cancellation catalyzes drastic, positive changes for borrowers, particularly for those not current on their loans.
- Federal student debt cancellation could have a positive impact on health outcomes. Debt is associated with negative mental and physical health outcomes such as stress, depression, worse self-reported general health, higher diastolic blood pressure, obesity, and even mortality. Research has also shown a connection between debt and foregone medical care.
- With this resolution, Members of Congress are sending a clear message to the administration: Cancelling up to $50,000 of federal student debt would disproportionately help borrowers of color, respond to the coronavirus crisis, and provide much-needed economic relief and stimulus. We support this effort encouraging the administration to use its power under existing law to improve the lives of millions of Americans, and we call for the resolution’s swift adoption.
Signatories
National Groups:
- American Medical Student Association
- Americans for Financial Reform
- Association of Latino Administrators and Superintendents [ALAS]
- Blue Future
- Center for Responsible Lending
- Clearinghouse on Women’s Issues
- Girls Inc.
- Indivisible
- Media Voices for Children
- Minority Veterans of America
- NAACP
- National Association of Social Workers
- National Center for Law and Economic Justice
- National Children’s Campaign
- National Consumer Law Center (on behalf of its low-income clients)
- National Education Association
- Oil Change U.S.
- People’s Parity Project
- Protect All Children’s Environment
- Public Citizen
- Public Counsel
- Rachel Carson Council
- School Social Work Association of America (SSWAA)
- Student Borrower Protection Center
- Student Debt Crisis
- The Feminist Front (FF)
- United Church of Christ, Justice and Local Church Ministries
- Young Invincibles
State Groups:
- AFT Washington
- AFT-Oregon
- Church Women United in New York State
- Civil Service Bar Association
- Consumer Federation of California
- Cooperative Baptist Fellowship of Texas
- Fayetteville Police Accountability Community Taskforce
- Georgia Watch
- Housing and Economic Rights Advocates
- Louisiana Budget Project
- Massachusetts Affordable Housing Alliance
- New Era Colorado
- New Jersey Citizen Action
- New Jersey Institute for Social Justice
- Ohio Student Association
- Piedmont Alliance for the Prevention of Substance Abuse
- South Carolina Appleseed Legal Justice Center
- The Midas Collaborative
- Tzedek DC
- United Vision for Idaho
- Women Employed
- Zero Debt Massachusetts