State AGs Make Argument To Congress for Broad Student Loan Debt Consolidation

A group of 17 state Attorneys General have written a letter to Congress endorsing a plan that would cancel $50,000 of student loan debt for all federal student loan borrowers.

The letter, written by the AGs of Massachusetts, New York, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maryland, Minnesota, Nevada, New Mexico, New Jersey, Oregon, Vermont, Virginia, Washington and Wisconsin — was sent to the Democrat and Republican leaders in both the Senate and House of Representatives.

The debate over canceling student loan debt has been raging since the COVID-19 pandemic hit the United States nearly a year ago. Advocates of the idea say that it will boost the economy and provide a much-needed stimulus to those in need, while critics counter that the idea does nothing to help current or future students while also using reports that indicate that student loan debt cancellation is not the best tool for the federal government to help consumers.

The letter was likely spurred by a comment made by President Biden last week during a town hall meeting where he said he was not in favor of cancelling that much in student loan debt. President Biden has indicated he would rather cancel $10,000 in student loan debt.

Being “keenly” aware of the “substantial burden” that student loans are placing on consumers, the AGs made their argument to have Congress enact legislation that would cancel $50,000 of federal student loans.

Individuals with student loan debs were already struggling before the pandemic and many of them are now in a more dire economic situation, the AGs argued in their letter. As well, many individuals were taken advantage of by for-profit colleges and have been saddled with “insurmountable” amounts of debt.

“Broad cancellation of Federal student loan debt will provide immediate relief to millions who are struggling during this pandemic and recession, and give a much-needed boost to families and our economy,” the AGs wrote. “Borrowers deserve and desperately need relief from their Federal student loan burden, and they need that relief immediately.”

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