09/11/2024 | Press release | Distributed by Public on 09/11/2024 11:58
New rule will disproportionately help low- and middle-income borrowers, seniors, women, and Black borrowers.
Washington, D.C. - Today, U.S. Senators Elizabeth Warren (D-Mass.) and Jeff Merkley (D-Ore.) released a new 29-page report, Who Really Benefits from Student Debt Cancellation?, examining the impact of the Biden-Harris administration's new Higher Education Act rule, proposed in April 2024, to cancel student loan debt for 24 million students by the end of this year. The report finds that low- and middle-income borrowers, seniors, women, and Black borrowers will receive enormous benefits from the new rule.
"Ten of millions of borrowers will benefit from the Biden-Harris Administration's new student debt relief rule," the report states. "This new rule will help low- and middle-income families and the economy as a whole-freeing up borrowers from crushing debt and empowering them to buy homes, start new businesses, and invest in themselves and their families."
After President Biden's first plan to cancel up to $20,000 of student loan debt for borrowers was blocked by a coalition of Supreme Court Justices appointed by former President Donald Trump and in the face of ongoing legal challenges to the Saving on a Valuable Education (SAVE) Plan, the Biden-Harris Administration announced that it would fix existing debt relief programs and use its existing authority to promulgate a new rule under the Higher Education Act to ensure 30 million borrowers receive relief by the end of this year. This rule is expected to provide relief to 24 million borrowers by targeting:
A future rule will provide relief for borrowers experiencing financial hardship.
The report details that four groups in particular would receive significant relief under the Biden-Harris Administration's new rule:
"For decades, students have worked hard and played by the rules, taking on loans with the promise that a college education would be a ticket to the middle class. Instead of getting ahead, millions of student loan borrowers are barely treading water," said Senator Warren. "Our report makes clear who the Biden-Harris administration is fighting for: working people who simply want a fair shot at the American dream."
"I was the first in my family to attend college, and I know the power that education has to open the doors of opportunity for those who work hard," said Senator Merkley. "America's students should be able to access higher education without the fear of being crushed by a lifetime of debt. This report highlights the urgent need to deliver relief for 24 million student borrowers and build a path toward fulfilling the promise of higher education for all students."
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