FOR IMMEDIATE RELEASE

March 19, 2020

CONTACT:
Alexis Goldstein, alexis@ourfinancialsecurity.org

Senate Democrats Plan to Cancel Student Debt Would Stimulate the Economy and Provide Crucial Relief to Borrowers

Statement from Alexis Goldstein, Senior Policy Analyst, Americans for Financial Reform: 

“The Senate Democrats plan to cancel student debt as an economic stimulus in response to the COVID-19 pandemic is a bold and necessary step. This plan will create both short and long-term economic benefits at a time when our economy is contracting rapidly. The government moving to cancel monthly student loan payments by paying down principal each month for borrowers will provide real relief from debt burdens at a time when everyone needs extra funds. The plan includes ceasing involuntary collections, which means that the most distressed borrowers will find relief at an utterly critical time. It ensures that a minimum of $10,000 of federal student loans will be cancelled by the time the proposed program ends. This is a welcome, important plan that should be swiftly embraced by all lawmakers.”