Attorney General James leads coalition calling for federal student loan cancellation

AG James and Multistate Coalition Support Congressional Resolutions Calling for Cancellation of Up to $ 50,000 Debt per Student Borrower

NEW YORK – New York Attorney General Letitia James today led a multistate coalition of 17 attorneys general from across the country to push for the approval of US House and Senate resolutions calling for remission of up to $ 50,000 in Federal Student Debt Any Federal Student Loan Borrower across the country. In their letter to CongressAttorney General James and the Coalition highlight the immediate emergency relief needed for borrowers struggling with uncontrollable student loan debt, which has only been exacerbated by the 2019 coronavirus disease pandemic (COVID-19) and the ensuing financial crisis. The resolutions – Senate Resolution 46 and House Resolution 100 – call on President Joseph Biden to exercise his authority to waive up to $ 50,000 in federal student loans per borrower.

“Student loan debt is keeping too many borrowers in trouble and preventing them from achieving financial stability,” he said Attorney General James“Many are behind on payments or default, leading to a downward spiral of ruined credit and interrupted dreams. Canceling up to $ 50,000 in student loans not only frees these borrowers to move on with their lives, but at the same time closes the racial wealth gap and takes our economy to new heights. This is about creating an equal footing between all students and giving every borrower the chance to succeed. “

In their letter, the coalition explains how the existing federal student loan repayment system does not provide enough opportunities for struggling borrowers to manage their debts. As many as one in five federal student loan borrowers is in default. Student loan options for getting relief have also proven inadequate. Only two percent of borrowers who applied for a loan under the Public Service Loan Forgiveness Program have been granted discharge, and the efforts of the public attorney general to obtain student loans for students defrauded by for-profit schools have been hindered by the US Department. of Education under the Trump administration.

Today’s letter specifically points out the misconduct of for-profit schools, and how the industry’s predatory practices have disproportionately harmed people of color. The attorneys general argue that canceling the federal student loan debt could significantly increase the wealth of the Black and Latinx household and help close the racial wealth gap.

Today’s letter is the latest action Attorney General James has taken to help student loan borrowers. In July, Attorney General James and a multistate coalition have sued the Trump administration’s U.S. Department of Education and former education secretary Betsy DeVos to block their attempts to revoke critical protections for student borrowers who have been tricked or defrauded by predatory for-profit schools.

In June 2020 Attorney General James has filed a lawsuit to prevent Department of Education and former Education Secretary DeVos from repealing the ‘Profitable Employment’ rule, which provides essential protection to students considering enrolling in for-profit colleges and vocational schools that promise students “paid employment in a recognized profession” upon graduation.

In addition, Attorney General James has entered into multi-state agreements to provide more than $ 7.5 million in debt relief to nearly 900 former ITT Tech students in New York, after research found that ITT Tech, Student CU Connect CUSO, and PEAKS Trust hunted students by tricking them into taking out student loans.

Massachusetts Attorney General Maura Healey joins Attorney General James in co-leading today’s letter. The two are joined by the Attorney General of Connecticut, Delaware, Hawaii, Illinois, Maryland, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Vermont, Virginia, Washington, Wisconsin, and the District of Columbia.

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