WASHINGTON — Representative Pramila Jayapal (WA-07), Chair of the Congressional Progressive Caucus, issued the following statement on a set of new initiatives announced today that build on the Biden administration’s efforts to cancel student debt:
“I applaud this historic set of rules that will cancel student debt for millions of Americans and promise to bring the total number of borrowers who’ve received relief from this administration up to more than 30 million. The proposals announced today target borrowers who have been financially burdened by their student loans and people who have been carrying this debt for decades, eliminating accrued interest for 23 million borrowers and providing 10 million with $5,000 or more in debt relief. Four million borrowers will see their student debt completely canceled.
“When the Supreme Court struck down the President’s plan for nationwide, universal student debt relief, borrowers, activists, and progressives in Congress organized for a new plan from the Biden administration. In the aftermath of that decision, we stressed the urgency of finding other avenues to provide this desperately needed relief. I am thrilled President Biden and his administration continue to meet the moment and use his existing statutory authority to cancel student debt. This plan advances economic justice, delivering for the 40 percent of borrowers who didn’t finish their degree, the majority of borrowers who have no household wealth, and people of color.
“Progressives were the earliest and loudest champions of student debt cancellation, and this President is delivering — despite Republican obstruction. We are proud to continue our partnership with the Biden administration on its implementation of this and other pathways to cancellation.”
The new proposed rule is responsive to asks made by Chair Jayapal, Senator Elizabeth Warren (D-MA), Representative Ayanna Pressley (MA-07), CPC Deputy Chair Ilhan Omar (MN-05), and Senator Bernie Sanders (I-VT) in a January 2024 letter and builds on the tireless advocacy of CPC members including Representatives Maxine Waters (CA-43) and Alma Adams (NC-12).
They include proposed rules to:
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Automatically cancel up to $20,000 of interest on loans for individuals making less than $120,000 per year who are enrolled in affordability programs like the SAVE Program or the Public Service Loan Forgiveness (PSLF) Program, enrollment in which will speed the delivery of relief;
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Cancel debt for borrowers who've been enrolled in repayment for 20 years for undergraduate loans and 25 for graduate school loans;
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Cancel debt for borrowers who took out loans for programs that have yielded low financial reward; and,
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Cancel debt for borrowers who have or will experience financial hardship as a result of their student debt.
