NAACP and 60 other groups call on Congress to write off student debt
Coalition of more than 60 organizations, including the NAACP, the American Federation of Teachers and the National Consumer Law Center, calls on Congress to cancel student loan debt as part of the next stimulus plan.
In a letter Addressed to congressional leaders from both parties in the House and Senate, the coalition noted that the economy remains in dire straits, while student loan protection under the CARES Act is expected to expire in just a few months.
“Without a comprehensive long-term solution, the CARES law suspended student loans for eighty percent of borrowers, that only fixes the problem until this fall, ”the organizations wrote. “Numerous [student loan borrowers] will face the daunting prospect starting in October of choosing between paying for necessities, including food, medical care, and rent, or making their student loan payment. The next stimulus package must take the necessary steps to ensure economic recovery across the board: it means the cancellation of federal student debt. “
The coalition of organizations noted that 43 million Americans would benefit from a student loan forgiveness. The approved letter various proposals already proposed by House and Senate Democrats to cancel student debt.
Citing academic and economic research, the groups noted that “canceling student debt would also boost the economy for everyone in the medium to long term. This would increase GDP to $ 108 billion per year and create up to 1.5 million jobs per year. Research by the National Bureau of Economic Research shows that the cancellation of federal student debt increases borrower income by approximately $ 3,000 over a three-year period.
Other organizations that signed the letter include the Center for Responsible Lending, the Disability Rights Education & Defense Fund, the National Center for Transgender Equality and the National Women’s Law Center, as well as various other consumer protection organizations.
In May, the House of Representatives adopted the HEROES law, a second massive stimulus bill that provided for a targeted forgiveness of student loans for the federal government and private student loans, as well as hundreds of billions of dollars in additional economic assistance. The bill passed in the House largely on a party line vote. But Senate GOP leaders rejected the bill, declaring it to be “”dead on arrival“before it even passed.
Republican leaders in the Senate, as well as officials in the Trump administration, have indicated an openness to another stimulus bill, although it is unlikely that a second relief round will be adopted before July at the earliest. Republican congressional leaders haven’t talked much about student loan relief recently, but they haven’t supported the idea of student loan cancellation to date.
Update: According to a spokesperson for the coalition of organizations, the coalition is now also calling for an extension of the protections of the CARES law until September 2021.