Senator Warren Calls For Forgiving Student Loan Debt

The following is the letter from Senator Elizabeth Warren (D-Massachusetts) to her supporters regarding student loan debt. She favors forgiving up to $50,000 of that debt. Here is what she had to say

There's been a lot of talk about unity recently.

For me, unity is about doing the work that the American people want done.

It's not about ideology. It's not about helping just the richest Americans or some interest group — unity is about doing things that the American people want to see us do.

And you know one thing that unites Americans? Canceling student loan debt.

It's a hugely popular proposal that would immediately put hundreds and thousands of dollars back in the pockets of millions of Americans, start to close the racial wealth gap, and boost our economy.

And the president can get it done without waiting for Congress.

I'm partnering with Senate Majority Leader Chuck Schumer and Congresswoman Ayanna Pressley to set a bold plan for how Joe Biden can use his executive authority to deliver meaningful relief to struggling Americans and broadly cancel up to $50,000 in student loan debt.

We need to take action because families need relief. Over 40 million Americans are being crushed by over $1.5 trillion in federal student loan debt.

In the middle of an economy that's been badly hit by the pandemic, the student debt crisis acts like an anchor, preventing a swift recovery and restricting opportunity and prosperity for millions of American families.

Canceling student loan debt as soon as possible would mean substantial and immediate relief for tens of millions of Americans, many of whom have suddenly been laid off or are worried that their jobs are next.

And communities of color, which have been hit hardest by the health and economic consequences of the coronavirus pandemic, disproportionately bear the burden of student debt.

Black students are on average nearly 20 percentage points more likely to take out federal student loans. Half of Black borrowers and a third of Latino borrowers default on their loans within 20 years. Canceling student loan debt would increase wealth for Black and Latino families, help them avoid default, and start to close the racial wealth gap.

Economists agree that canceling student loan debt would also help boost our struggling economy through a consumer-driven economic stimulus, greater home-buying rates and housing stability, expanded access to more affordable financial products including car loans and mortgages, higher college completion rates, and greater small business formation. This is a no brainer for our economy.

Look: we all saw what happened in 2008. After the financial crisis, young people were shoved into a weak job market and plunged even deeper into student debt. And today, as workers face layoffs and frozen wages in the wake of the coronavirus pandemic, student loan borrowers who were barely staying afloat are now drowning. When Americans can't fully participate in our economy, we see a ripple effect across our entire economy and a slowdown in economic growth. This affects all of us, including those of us who don't have student loans or have already paid off their student debt.

We can do better than this. And Democrats will.

Elizabeth