William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

Floor Speech

I rise today in support of my amendment to H.R. 6395, the William M. Thornberry National Defense Authorization Act for Fiscal Year 2021.

As we debate this important legislation today, we must remain laser- focused on how our fellow Americans, servicemen, and veterans continue to face incredible challenges due to the COVID-19 pandemic.

In particular, I remain concerned about the student loan crisis that existed long before the pandemic paralyzed our economy and threw tens of millions of Americans out of their jobs. Student loan debt has surpassed credit cards and auto loans as the largest debt held by consumers, second only to mortgages.

According to the Federal Reserve, more than 40 million Americans hold $1.6 trillion in cumulative student loan debt. In 2019, private student loans comprised nearly 8 percent of the outstanding balances, amounting to roughly $123 billion.

This crushing student loan debt reduces homeownership, jeopardizes retirement security, and limits the formation of small businesses.

We also know that many Americans were struggling to repay their student loans before the pandemic. Now, it has only gotten worse.

Prior to COVID-19, more than one in seven student loan borrowers were more than 90 days delinquent, and almost half did not pay down their balances over the previous quarter.

That is why we created protections for student borrowers in the CARES Act. In CARES, we granted people with Federal student loans a break from their payments until next September.

Unfortunately, private student loan borrowers continue to find themselves with very few relief options. During the pandemic, the number of private student borrowers not making repayment progress has increased by 36 percent.

Even though Congress has passed a number of bills to provide relief during these difficult times, we have left millions of Americans uncovered and without necessary protections.

That is why I proposed an amendment with the NDAA that is simple and fair. It would extend the CARES student loan protections that were provided to Federal student loan borrowers to private student loan borrowers who were left out. This would include a pause in borrower payment obligations, in accrual of interest, in negative credit reporting, and in debt collection.

Additionally, the CARES student loan protections expire on September 30, 2020, and the pandemic and the economic fallout do not appear to be ending in the near future. So, the amendment extends the private student loan protections an additional year, until September 30.

Mr. Speaker, I urge my colleagues to support this amendment, and I reserve the balance of my time.

Ms. FOXX of North Carolina. Mr. Speaker, I rise in opposition to the amendment offered by the gentlewoman from North Carolina.

BREAK IN TRANSCRIPT

Ms. ADAMS. Mr. Speaker, I want to remind the gentlewoman that, since March, this body has provided $600 billion in funds for the Paycheck Protection Program. But because of shoddy implementation, the administration lavished billions on this Nation's country clubs and private jet companies and other entities of the 1 percent. That doesn't even include the multiple tax breaks and the advantages for corporations that were written into the CARES Act, which, combined, equal as much as the amount spent to provide Americans with $1,200 in a stimulus check.

So, Mr. Speaker, why is it that it is only socialism when we endeavor to provide relief to working-class or middle-class Americans? Why are American taxpayer dollars only sacred when we try to provide for those who are in need the most?

We are living in unprecedented times, and so we need an unprecedented response. People are struggling. They are trying truly to get by, no fault of their own.

We know that supporting our fellow Americans will require significant investments and funding, so let's find the courage and let's have some compassion to provide the financial support that student loan relief could do that they urgently need.

Ms. FOXX of North Carolina.

This amendment is bad policy. It involves the Federal Government in completely private transactions and attempts to solve a problem the facts suggest does not exist.

Again, the people who borrowed this money agreed to pay it back. They are not victims.

This is a trend of our colleagues never to hold people responsible for their actions.

Mr. Speaker, I urge my colleagues to vote ``no,'' and I yield back the balance of my time.

BREAK IN TRANSCRIPT

Ms. ADAMS. Mr. Speaker, I am prepared to close, and I yield myself the balance of my time.

Mr. Speaker, with 32 million Americans receiving unemployment benefits, nearly 20 percent of our workforce is in need of relief.

And, yes, folks who have loans and folks who signed a contract to pay rent and their mortgage, because of this pandemic and they have lost jobs, they can't do that.

You know, according to one higher education expert's calculations, some 10 billion student loan borrowers could be out of work amid the recession, and right now, the most important expenses for Americans are food, medical care, housing, and utilities.

So, Mr. Speaker, I urge my colleagues to operate from a place of compassion and fairness. As Members of Congress, we are blessed to have jobs. No one here has lost a paycheck. We have health insurance and all the other basic needs that we have, so the least that we can do is provide a temporary economic life raft to our fellow citizens. This amendment gives us the opportunity to help those in need.

BREAK IN TRANSCRIPT

Source