Seven state attorneys general, and an eighth from Puerto Rico, have called upon President Joe Biden to fully cancel federal student debt estimated at more than $1.6 trillion.
The U.S. Department of Education reports more than 43 million borrowers on average owe $37,000 in student loan debt. The federal government’s education agency already has forgiven $17 billion in student loan debt held by 725,000 borrowers since the beginning of the Biden administration.
The prosecutors are Hawaii’s Holly Shikada, Illinois’s Kwame Raoul, Michigan’s Dana Nessel, Minnesota’s Keith Ellison, New Mexico’s Hector Balderas, New York’s Letitia James, Washington’s Bob Ferguson, and Puerto Rico’s Domingo Emanuelli Hernandez. All are Democrats.
Requirements for student loan repayments have been on ice since the beginning of the COVID-19 pandemic in March 2020. The latest nonrepayment extension expires August 31. Last month, the Wall Street Journal reported, the federal Department of Education announced plans to revamp its loan program to grant 10 percent, or 3.5 million borrowers, three years of credit on total loan forgiveness based on the borrowers’ incomes.
In their letter to the president, the state attorneys general ask Biden to make good on his administration’s attempts to lessen the debt burden of student loan borrowers. They are seeking full forgiveness for every borrower. U.S. Senate Majority Leader Charles Schumer (D-New York) told an activist group last month he hopes the amount is $50,000 per borrower.
Biden has expressed his desire to forgive $10,000 per borrower of all student loans. In remarks last week following a meeting with Democratic lawmakers, Biden said he was “taking a hard look” at canceling additional student loan debt. He did not give a number, but said $50,000 was not under consideration.
“Hardships created by the pandemic – and the subsequent hold on loan payments – prove we are equipped to cancel student debt once and for all,” Michigan’s Nessel said in a statement. “I stand with my colleagues in asking President Biden to bring this much-needed relief to millions of borrowers across the country.”
The state attorneys general presented a list of reasons why the president should excuse all student loan debt by exercising his authority under the Higher Education Act, including:
A full cancellation of student debt is necessary to address the sheer enormity of debts owed.
The systemically flawed repayment and forgiveness systems for repayment of student loans.
The disproportionate impact of the debt burden on millions of borrowers.
The state attorneys general continue by saying that forgiveness of student loan debts will:
Reduce stress and mental fatigue.
Provide countless opportunities for borrowers, such as saving for retirement and purchasing new homes.
Substantially help close the racial wealth gap.
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