NAACP Reacts to Biden-Harris Announcement on Millions in Additional Student Debt Cancellation

FOR IMMEDIATE RELEASE

July 31, 2024

Contact: Alicia Mercedes, [email protected]

WASHINGTON - Today, the Department of Education (DOE) announced that they would begin notifying federal loan borrowers of potential cancellation pathways coming as a result of the finalized, updated federal rules on student debt cancellation that add additional qualifying factors for cancellation. If passed, the final proposed rule would expand cancellation to more than 30 million Americans.

NAACP Senior National Director of Advocacy, Wisdom Cole released the following statement in reaction to today's news:

"The NAACP is proud to have participated in the Negotiated Rulemaking process, putting the concerns of Black America forward and offering solutions that center those most impacted by the student debt crisis. As we look toward the finalization of the proposed updates to these federal rules governing student debt cancellation, it's imperative that those eligible for relief remain informed. The NAACP appreciates the Department's continued efforts to work in collaboration with our community to move cancellation forward. But the work cannot stop here. We stand firm in our belief that, in order to make cancellation truly equitable, hardship must be included as a qualifying factor. The NAACP is all in on student debt cancellation, and remain committed to making our vision of economic mobility a reality for all Americans. It's not done until it's done. Let's finish the job."

Cole, who negotiated on behalf of the NAACP and broader civil rights community uplifted the intersection of racial justice and student debt cancellation throughout the rulemaking process. Final proposed rules would expand qualification to;

• Borrowers who owe more now than they did at the start of repayment. Borrowers would be eligible for relief if they have a current balance on certain types of Federal student loans that is greater than the balance of that loan when it entered repayment due to runaway interest.
• Borrowers who have been in repayment for decades. If a borrower with only undergraduate loans has been in repayment for more than 20 years (received on or before July 1, 2005), they would be eligible for this relief. Borrowers with at least one graduate loan who have been in repayment for more than 25 years (received on or before July 1, 2000) would also be eligible.
• Borrowers who are otherwise eligible for loan forgiveness but have not yet applied. If a borrower hasn't successfully enrolled in an income-driven repayment (IDR) plan but would be eligible for immediate forgiveness, they would be eligible for relief. Borrowers who would be eligible for closed school discharge or other types of forgiveness opportunities but haven't successfully applied would also be eligible for this relief.
• Borrowers who enrolled in low-financial value programs. If a borrower attended an institution that failed to provide sufficient financial value, or that failed one of the Department's accountability standards for institutions, those borrowers would also be eligible for debt relief.

The current, final proposed rule does not include hardship as a qualifying factor, an issue that the NAACP raised throughout the rulemaking process, including during testimony from NAACP President & CEO, Derrick Johnson. The Association also engaged coalition partners in a letter to DOE Secretary Miguel Cardona, expressing the profound need for the inclusion of hardship as a determinant of a successful inclusion of our nation's most vulnerable communities in lieu of broad-based relief.

To learn more about the NAACP's work to make cancellation a reality, visit our website.

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About NAACP

The NAACP advocates, agitates, and litigates for the civil rights due to Black America. Our legacy is built on the foundation of grassroots activism by the biggest civil rights pioneers of the 20th century and is sustained by 21st century activists. From classrooms and courtrooms to city halls and Congress, our network of members across the country works to secure the social and political power that will end race-based discrimination. That work is rooted in racial equity, civic engagement, and supportive policies and institutions for all marginalized people. We are committed to a world without racism where Black people enjoy equitable opportunities in thriving communities.

NOTE: The Legal Defense Fund - also referred to as the NAACP-LDF - was founded in 1940 as a part of the NAACP, but now operates as a completely separate entity.

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