FOR IMMEDIATE RELEASE:
January 10, 2023
Contact: info@studentdebtcrisis.org
“The administration’s plan to fix broken IDR programs is critical relief that will ease the burden facing low-income Americans. Unfortunately, the plan repeats past mistakes that leave too many holes in the student loan safety net. Parents are excluded from the new benefits even though many are shouldering their children’s debt on top of their own debt. And, graduate students are blocked from the full benefits of the plan despite them carrying higher, more unaffordable monthly payments,” said Natalia Abrams, President of the Student Debt Crisis Center. “We are optimistic that the administration’s plan will lower monthly payments, but we believe that more work must be done to provide comprehensive relief for every borrower. That means delivering on the promise of broad-based debt cancellation and securing additional reforms that benefit all borrowers.”
“For decades borrowers have leaned on IDR programs to help them afford necessities without falling behind on their student loans, but the programs still left far too many people with unaffordable payments and loan balances that were increasing. This plan is a step in the right direction that will provide a meaningful path forward for borrowers trapped in a never-ending cycle of student debt,” said Cody Hounanian, Executive Director of the Student Debt Crisis Center. “At the same time, we hear and echo the voices of our two-million supporters who say this plan does not go far enough. Parents, graduate students, and those sinking in the quicksand of compounding interest will double their advocacy to ensure the administration’s reforms benefit those who need it most.”
