A handful of Democrats are calling to cancel some of the $1.6 trillion student debt crisis because of inequities that could be worsened by the coronavirus pandemic.
Reps. Ayanna Pressley of Massachusetts, Ilhan Omar of Minnesota, and Alma Adams of North Carolina sent a letter to House leaders Nancy Pelosi and Kevin McCarthy asking for student debt cancellation in future aid packages. The letter expresses that while the protections offered for federal loan borrowers have been helpful, long-term relief needs to be provided for 45 million people carrying student debt.
Additionally, the lawmakers say there’s a growing economic disparity gap between white borrowers and those of color.
“Black and brown communities disproportionately bear the brunt of our $1.6 trillion student loan debt crisis, and the #COVID19 crisis has only exacerbated these inequities,” Pressley tweeted on Friday.
Black and brown communities disproportionately bear the brunt of our $1.6 trillion student loan debt crisis, and the #COVID19 crisis has only exacerbated these inequities. @Ilhan, @RepAdams, & I are continuing our calls to #CancelStudentDebt now. pic.twitter.com/VBv0ik2vPl
— Congresswoman Ayanna Pressley (@RepPressley) May 8, 2020
The letter requests that Congress issue a one-time, universal cancellation of at least $30,000 for all federal student loan borrowers and extended relief not to pay loans until 2021. It also calls for a halt to collections for commercially owned Perkins and FFEL program loans not included in the original aid package, as well as expansions of consumer protections for private loan borrowers.
The proposal to cancel student debt comes after reports of the country now seeing a nearly 15% unemployment rate, which is the highest rate since the Great Depression.
There are 9 million borrowers who have not made a payment on their federal student loans in almost a year. Defaulting on loans can put borrowers at risk of wage, disability income, or Social Security garnishment.
The U.S. Education Department has temporarily paused federal payments to provide relief during the pandemic. The department also vowed not to garnish wages during the period, but a lawsuit against Education Sec. Betsy DeVos proves there have been inconsistencies in that promise.
