Consumer Groups, Lots of Them, Ask Biden to Cancel Student Loan Debts

A group of 238 state and federal consumer organizations have written a letter to President-elect Joe Biden and Vice President-elect Kamala Harris asking them to cancel all federal student debt on their first day in office.

The groups, which include the National Consumer Law Center, the American Federation of Teachers, and the NAACP, arguing that canceling student loan debt will narrow racial inequalities, provide a financial stimulus to the economy, and positively impact the collective health of those with student loan debt.

“Cancelling student debt would disproportionately help borrowers of color, respond to the coronavirus crisis, and provide much needed economic relief and stimulus,” the groups wrote. “We call on you to deliver on the promise of the Biden Harris Racial Economic Equity plan by cancelling federal student debt by executive action on Day One of your administration.”

The letter adds more fuel to the fire in favor of canceling student loan debt nationwide. Last week, Sen. Elizabeth Warren [D-Mass.], called on the President-elect to cancel “billions” of dollars in student loan debt because it is the “single most effective” solution to stimulate a struggling economy.

Payments on federal student loans have been paused during the coronavirus pandemic, but consumer advocates argue that is not enough to help millions of individuals who are struggling to pay off their student loans. Those advocates are urging the President-elect to take executive action to wipe out student loan debts, while he has so far signaled a preference for going through Congress, which might not be successful, depending on the result of the run-off elections in Georgia in January, which will determine whether Republicans or Democrats control the Senate.

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