The Trump Administration’s minor tweaks for some federal student loan borrowers are insufficient and fail to tackle the crisis. The Department of Education announced that borrowers with federally held student loans will have the option to suspend payments, but will need to contact their servicer in order to request it. This requires effort on the part of borrowers who are already under stress. This is coming at a time when many student loan servicers are closing call centers or reducing hours. Worse still, it leaves out some federal student loan borrowers whose loans are not federally held.
The 20 undersigned community, civil rights, consumer, and student advocacy organizations applaud the Senate Democrats’ student debt cancellation proposal. The plan will take decisive action to get immediate and impactful relief to millions of Americans. It will enable many economically distressed borrowers to focus on their own personal safety and that of others, while also freeing up extra dollars they can use to put back into the economy.
The Coronavirus pandemic is a health crisis like we have never seen before, and it is colliding with the economic crisis of this generation — student loan debt. Lost wages and medical costs will impact families across the country for weeks, months, and years to
The COVID-19 pandemic requires an aggressive economic response that creates the best possible conditions to preserve public health and helps individuals, families, and communities weather the disruptions that efforts to contain the pandemic require.