As the payment pause on federal student loans was extended without modification, the suspension on payments and waiving of interest only goes to borrowers with federally-held loans. It continues to leave an estimated 9 million of federal student loan borrowers without any relief at all.
Americans for Financial Reform joined a letter to the Biden Administration urging them not to weaken the securities laws through the further expansion and deregulation of the private offering marketplace. The letter warns that further expanding the pool of securities exempt from the disclosure and investor protections afforded by the federal securities laws has the potential to damage economic recovery, including by increasing the probability of fraud and hindering the efficient allocation of capital.
We applaud the nomination of Rohit Chopra to lead the CFPB. His commitment to consumer protection, his effectiveness at using the tools of government to serve the public interest, and his willingness to challenge powerful corporate interests when necessary are exactly what the Bureau needs to fulfill its crucial consumer protection mission.
AFR joined a letter urging President-Elect Biden to expand assistance to homeowners in the upcoming COVID-19 relief package. The letter called on the Biden administration to support the establishment of a Housing Assistance Fund, provide funding for HUD-approved housing counseling agencies and legal assistance, and to support several legislative measures to prevent the coming tsunami of foreclosures that likely will be concentrated in low-income communities and communities of color.
Today, more than 325 organizations sent an updated letter to President-Elect Biden and Vice President-Elect Harris, calling on them to use executive authority to cancel federal student debt on day one of their administration. The letter highlights that cancelling student debt would stimulate the economy, help reduce racial wealth gaps, and could have a positive impact on health outcomes. The groups write that “executive action is one of the few available tools that could immediately provide a boost to upwards of 44 million borrowers and the economy.” Further, this action would be an important first step in advancing the President-Elect’s campaign priorities to ensure racial equity, focus on economic recovery, and deliver COVID-19 relief.
Over 325 organizations signed a letter to President-Elect Biden and Vice President-Elect Harris, calling on them to use executive authority to cancel federal student debt on day one of their administration. This letter is a re-release of a November letter, and has been updated with more than 85 additional signers.
The absence of a legislative request to cancel student debt in Biden’s “American Rescue” plan heightens the urgent need for President-Elect Biden to cancel student debt administratively. Overwhelming research shows that student debt cancellation would provide dramatic relief particularly in low-income neighborhoods and among communities of color that are disproportionately burdened by ballooning debt. We hope the absence of debt cancellation in this package is a clear indication that President-Elect Biden is planning to act quickly to use his authority to cancel student debt through executive action. We look forward to working with him to do that.
We welcome the announcement that President-Elect Biden plans to extend the student loan payment pause. However, we encourage him to take immediate executive action on student debt cancellation. We know President-Elect Biden realizes how important student debt relief is, and how many other battles Congress will have in this critical moment. The surest way to get immediate cancellation is through executive action.
Betsy DeVos spent her tenure at the Department of Education fighting against the legal rights of defrauded student loan borrowers at every turn. She rolled back protections, defied court orders, and even complained, when the law required her to execute debt cancellations previously approved by the Obama administration, that she did so with “with extreme displeasure.” And in her final days as Secretary, she condemned debt cancellation, even as the pandemic and economic crisis continues to rage, and student loan borrowers need every break they can get. We look forward to a Department of Education that works toward broad-based debt cancellation, and understands its mission is to protect students, not predatory institutions .
We applaud Representatives Ayanna Pressley, Ilhan Omar, Alma Adams and House Financial Services Chairwoman Maxine Waters for introducing the House companion to the Schumer/Warren resolution calling for broad-based federal student debt cancellation via executive action. Cancelling substantial student debt will provide both immediate financial relief to millions of Americans, and crucial economic stimulus for everyone during this protracted crisis — boosting GDP and job creation at a time of intense labor shocks and economic contraction.