Student loan cancellation update

This is a critical first step in addressing higher education affordability.

Dear MoveOn member,

On August 24, the Biden administration announced that it would be canceling student loan debt for borrowers with federal loans if their income is less than $125,000/year. These borrowers will be eligible for up to $10,000 in cancellation, unless they are Pell Grant recipients, in which case they'll be eligible for up to $20,000. 

Biden's plan will reconfigure monthly payments on undergraduate loan debt, capping them at 5% of discretionary income. It will also cover accrued unpaid interest, so that no borrower's loan balance will grow as long as they make their payments.¹

This is a huge deal. There are millions of stories of borrowers who have never missed a single payment, yet the interest rates on their loans are so high and exploitative that their total debt balloons out of control. This fix will provide a lifeline to many. 

If you're a borrower who qualifies for student debt relief, be sure to sign up on the Department of Education's website for email updates on the cancellation process. The link to the application to process your loan cancellation will be available some time in the coming weeks!

Despite the historic relief that President Biden's plan provides, Republicans across the country are fighting to kill it. This is unconscionable, given the skyrocketing levels of student debt and astronomically high costs of higher education.² Republicans are making it clear: They want to entrap tens of millions of Americans in cycles of debt and make education inaccessible to large segments of our nation's populace.

The Biden administration's historic student debt relief plan is a critical first step in addressing the crisis of higher education affordability. Multiple polls show that voters, especially young voters, overwhelmingly approve of Biden's recent decisions to cancel student debt.^{3, 4, 5} And as long as Democrats maintain control of the House and Senate this November, his plan will largely be shielded from congressional Republicans.

Millions of MoveOn members have already taken action demanding student debt relief—you've signed petitions, submitted your student debt stories, called your members of Congress, spread the word on social media, and so much more. Now, as we enter the next phase of this fight, your action will be critical.

If you're interested in supporting borrowers in navigating the cancellation process, sign up for the Student Debt Crisis Center's Ambassador Program! This is a program run by our phenomenal partners who will train you to help support others and continue this important fight. 

Thanks for all you do.

–Arvin, Mana, Chloe, Sara, and the rest of the team

Sources:

1. "The 'sleeper-hit' beyond $10K: Student loan borrowers say new income-driven repayment plan could be 'life-changing,'" CNBC, September 4, 2022
https://act.moveon.org/go/168477?t=16&akid=333690%2E53570607%2EnZhJeD

2. "Almost half of U.S. governors ask Joe Biden to cut student loan forgiveness plan," NPR, September 13, 2022
https://act.moveon.org/go/168478?t=18&akid=333690%2E53570607%2EnZhJeD

3. "Strong Majorities Score Biden and Democrats' Agenda Positively," Navigator Research, September 6, 2022
https://act.moveon.org/go/168479?t=20&akid=333690%2E53570607%2EnZhJeD

4. "Progressive Messaging In Favor of Student Debt Cancellation is Effective," Navigator Research, September 16, 2022
https://act.moveon.org/go/168480?t=22&akid=333690%2E53570607%2EnZhJeD

5. Tweet from Rise Free, September 13, 2022
https://act.moveon.org/go/168481?t=24&akid=333690%2E53570607%2EnZhJeD

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