Cancel Student Loan Debt

Floor Speech

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Ms. JAYAPAL. Madam Speaker, I thank my colleague, Representative Bowman, for his incredible leadership. It has been a true honor to serve with the gentleman in the Progressive Caucus, this Special Order hour has always been the Progressive Caucus' Special Order hour led in his very capable hands and also to be able to serve with him on the Education and Labor Committee. The gentleman brings tremendous power to the actual experience of education through his own background. I am so proud to serve with the gentleman.

Madam Speaker, I, too, am here to talk about the need to cancel student debt. This is a tremendous crisis for 36 million Americans who are being crushed by $1.8 trillion in student loan debt.

When I first ran for Congress in 2016, the number was $1.2 trillion; then it was $1.3 trillion, $1.5 trillion, now it is almost $1.8 trillion in student loan debt. Working families and students are counting on this administration to build us all back better.

But many families like those I represent in Seattle cannot thrive with the crippling burden of student loan debt holding them back at every single turn.

With the student loan moratorium expiring at the end of January, borrowers are literally just a few weeks away from resuming to pay substantial amounts of their income toward student loan payments and the crises that they are facing, the trauma that they are facing as they think about what they are going to do when this moratorium expires and how they are going to make these payments. Over one-quarter of borrowers expect at least one-third of their income will go toward student loans once the pause ends, and they are terrified. Eighty-nine percent of full-time employed borrowers are expecting to be financially insecure come February 1.

While that number is concerning, it should not be surprising. The economic toll of the pandemic has made it tough for one-quarter of all adults to pay their bills. To make ends meet, people have stayed afloat by using the money that would have gone to student loan payments on all the other essential costs that they have. Eighty-seven percent of borrowers report using these savings to pay off other bills.

This is personal. My office recently heard from a mother and a veteran in the Seattle area who was delinquent in her payments even before the first case of COVID-19 hit our country. She is glad that the pause has given her a chance to catch up on payments, but she is concerned that very soon she will have to choose between paying her mortgage and repaying her student loans after January. Not having to make student loan payments has helped her and her family. But should this pause end without student debt cancelation, she and her children will be on the path to financial ruin. We have the power to make sure that does not happen. This administration has the power to make sure that does not happen.

The good news is that this administration does have, as my colleague said, the authority to do what is right for families like hers and like so many that I have been hearing from. Clearly, if the pause on student loans and interest was necessary to help families sustain themselves through the pandemic, then ending it without any form of permanent student debt relief would be harmful, especially as many families are continuing to struggle during this ongoing crisis.

Consider the tremendous strides the Biden administration has made toward reviving our struggling economy: low unemployment, reopened businesses, and vaccinations driving consumer demand. Eliminating $50,000, at least, of student debt per borrower would increase average yearly pay by $3,000 which in turn would increase GDP by $1 trillion.

Cancelation would also solidify access to important paths for building the middle class which have been delayed due to student loan debt. More than 80 percent of borrowers with student loan debt report that that debt is holding them back from being able to afford a home. Many would be in a better position to begin saving for homeownership as well as retirement or starting a business.

Student loan forgiveness would also help close the wealth gap, as Mr. Bowman pointed out, especially in communities of color. Black, Latinx, and Native borrowers are more likely to struggle with repayments and consequently default on their loans at higher rates. Further, it is estimated that Black borrowers on average owe nearly $53,000 in student debt, the highest compared to other communities. In fact, the average student debt for Black households tripled in the 12 years following the 2008 recession with student debt held by Black borrowers being triple what White borrowers owe just 4 years after graduating.

So, yes, this is clearly a matter of racial and economic justice.

Low-income and middle-class Americans are encouraged to pursue higher education as a tool for economic and social mobility. But here is the catch, the enduring weight of student loan debt negates opportunities for many borrowers to truly transform their lives and our country.

As the lead sponsor of the College for All Act in the House and a proud cosponsor of the debt cancelation bill from Representative Omar, I know that eliminating student loan debt will better ensure that earning a degree remains a strong path to social mobility and economic security, particularly during this pivotal moment for our recovery. That is why the administration should cancel student loan debt.

They can start with immediately eliminating at least $50,000 in student loan debt per borrower before the payments begin again. It is a single action that can cement progress for an entire generation of Americans and those who come after that. So let's deliver that financial breathing room. Let's deliver on racial equity and economic security by canceling student loan debt.

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