Senators: Support the Schumer/Warren Resolution to Cancel Student Debt

Forty-five million Americans hold a whopping $1.6 trillion in student loan debt. Eight million of those individuals have defaulted on their loans. Before the coronavirus pandemic, a person defaulted on their student loans every 26 seconds.

According to the New York Times, eight million people have slipped into poverty since May. With many people unable to pay for even basic necessities for themselves and their families, millions will likely be unable to make their student loan payments. Without bold action, the massive burden of student loan debt threatens the economic security of borrowers and the country as a whole.

The coronavirus pandemic is not only a once in a generation health crisis, but also now a catastrophic economic crisis. Lost wages due to furloughs and layoffs will impact families for years to come.

The labor shocks this pandemic is causing will increase federal student loan defaults. Borrowers in default may have their tax refunds seized or wages garnished at a time when they can least afford it. In the short term, cancelling student debt in response to the coronavirus crisis will bring relief to 45 million people with student loans and stimulate the economy when it is needed most. It will also allow borrowers to purchase the necessities their families depend on including food, housing, and critical healthcare.

In the medium and long term, a student debt cancellation stimulus can help mitigate the continuing economic costs of this crisis. Student debt cancellation can boost GDP by up to $108 billion a year and add up to 1.5 million jobs per year.
Since the federal government owns an overwhelming majority of student loans, the president has the power to cancel these debts.

Tell your Senators to co-sponsor the Schumer-Warren resolution, which urges the President to use executive authority to cancel student loan debt.