FOR IMMEDIATE RELEASE: November 11, 2022
Contact: Cody Hounanian | cody@studentdebtcrisis.org
Federal Judge Blocks Biden’s Student Debt Cancellation Plan, Injustice that Harms 40 Million Americans
SDCC Calls on President Biden to Extend the Student Loan Payment Pause Until Legal Hurdles are Cleared and Debt is Canceled
We strongly oppose a federal judge’s decision to block President Biden’s plan to cancel student debt for 40 million Americans. The judge’s decision is an injustice that could harm families across the country as they struggle to recover from the economic impacts of the pandemic and skyrocketing inflation. We remain steadfast in our belief that the President has the legal authority to cancel debt and we are eager to see the legal process continue through appeals.
In the meantime, our focus is on students, borrowers, and parents that are crushed by debt. Not only is debt cancellation at risk, but federal student loan payments are also set to begin again on January 1. If payments restart, it will be a financial disaster that leads to a wave of student loan delinquencies, loan defaults, and distress.
We call on President Biden to protect borrowers during this uncertain time, by extending the student loan payment pause until all legal hurdles are cleared and debts are canceled.
“The purpose of the President’s debt cancellation plan is to help middle and working-class Americans heal from the harm caused by the pandemic. We share this mission and will work diligently to ensure each borrower has the resources they need to get back on their feet. That starts right now, with an immediate extension of the federal student loan payment pause,” said Natalia Abrams, President of the Student Debt Crisis Center. “For three years, borrowers have been a political punching bag facing uncertainty about the future of their student loans. The judge’s decision makes the future even more worrisome. President Biden must pause payments further into the future to provide financial stability and peace of mind to 40 million Americans.” “We are deeply disappointed by this judge’s decision to side with political interests groups instead of hard-working Americans and their families. The fight to end student debt is not over and we will double our efforts to help those who need it most. That is why we are calling on the President to use his power to provide additional relief,” said Cody Hounanian, Executive Director of the Student Debt Crisis Center
Over 22,300 people have signed a petition calling on President Biden to extend the payment pause in the past 48 hours. The petition also calls on the President to include all federal student loan borrowers in this relief including Family Federal Education Loans (FFELP) that have been excluded from pandemic-related relief.
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Student Debt Crisis Center (SDCC) is a non-profit organization centering the needs and voices of borrowers and partnering with allies, to impact public policy and end the student debt crisis. The center works directly with borrowers to help them navigate the bewildering and frustrating loan repayment system and advocates for lasting and meaningful change. It leads a people-powered movement representing over 2 million supporters. Learn more at www.studentdebtcrisis.org and follow SDCC on Twitter at @DebtCrisisOrg.