Tag Archives: student debt

a student raises their hand in a classroom Photo by Felicia Buitenwerf on Unsplash

Sign-on letter: 69 orgs call for canceling student debt to tackle economic fallout

Today, 69 community, civil rights, consumer, and student advocacy organizations sent a letter to House and Senate leadership, urging them to include student debt cancellation in the next coronavirus package.  The letter also calls on leadership to extend the suspension of payments on federal student loans through March 2021, as current estimates indicate that the economy will not recover to pre-virus levels until the third quarter of 2021.

photo of a student borrower looking sadly at the sky - Photo by Matese Fields on Unsplash

News Release: The CARES Act fails to provide sufficient relief to federal student loan borrowers

The 43 million federal student loan borrowers are not getting meaningful relief from the CARES Act. It leaves an estimated 9 millions of federal student loan borrowers without any relief at all, does not guarantee that borrowers won’t face large principals when they return to repayment, and doesn’t include cancelling student debt, a move that both provides crucial relief to distressed borrowers and stimulates a fast-contracting economy. 

In the News: Trump suspends interest on all federal student loans to ease financial impact of coronavirus

“With so many facing the prospect of lost wages or lost jobs, the government can and should do more than waive interest, which is merely an economic Band-Aid on the gaping financial wound the pandemic is causing,” said Alexis Goldstein, senior policy analyst at the liberal think tank Americans for Financial Reform. “The Education Department has the authority to cancel student debt, and using it would mean both short- and medium-term economic stimulus that helps all Americans.”

AFR Statement: The Department of Education has the Authority to Cancel Federal Student Loans. It should.

Today’s proposal that administrative authority be used to cancel student debt, and the affirmation of the legality of such a step by the Project on Predatory Student Lending at Harvard Law School are important positive possibilities for student borrowers and their families and communities. AFR has long called on the Department of Education to use its existing legal authority to cancel the federal debts of wronged students of for-profit colleges without individual application – as have former Corinthian students, advocates, lawmakers, and law enforcement officials.

News Release: AFR/CRL Poll Shows Voters Overwhelmingly Oppose Rollbacks of Student Loan Protections

Strong majorities across political parties show concern about the level of student debt in the United States and oppose the Department of Education’s and the Consumer Financial Protection Bureau’s (CFPB) recent actions to weaken protections for students, according to a new poll released by Americans for Financial Reform (AFR) and the Center for Responsible Lending (CRL).