Washington, D.C. — As borrowers await President Joe Biden’s highly anticipated decision on whether to cancel student debt, a new column from the Center of American Progress breaks down five things to know about student debt cancellation and what it would mean for millions of borrowers:
- Debt cancellation would help millions of borrowers: For years, student loan debt has left millions of borrowers facing the tough decision of whether to pay off their loans or pay for basic living necessities. Debt relief would help alleviate this burden.
- Debt cancellation would help narrow the racial wealth gap: Black borrowers often have to borrow more and take longer to pay off their loans; in addition, the majority of Black borrowers end up owing more after 12 years than they originally borrowed.
- Debt cancellation is already ingrained in the higher education system: Congress has created repayment plans and programs, such as Public Service Loan Forgiveness, that offer debt cancellation after a certain number of years.
- Now is the time to take action on student debt: Every few months, borrowers anxiously wait to see if the payment pause will continue. If debt is canceled, however, borrowers would no longer have to fear how they’ll make ends meet following a return to repayment.
- Debt cancellation is only one piece of the college affordability puzzle: Canceling student debt would refocus the conversation on how we reform the student loan system to restore the promise of affordable and accessible access to higher education.
Read the column: “5 Things To Know About Debt Cancellation” by Ella Azoulay, Jared C. Bass, Marcella Bombardieri, and Bradley D. Custer
For more information or to speak with an expert, please contact Sarah Nadeau at email@example.com.