PROGRESSIVE PLAYBOOK > CANCEL STUDENT DEBT

Higher Ed.png — CANCEL STUDENT DEBT

CONTENTS
Core Message
Polling + Words That Work
Tools + Resources
Related Issues

CORE MESSAGE

Most of us want to build a nation where everyone can thrive, but for too long, universities have hiked tuition while certain politicians slashed public funding for education and big banks profited off our dreams. As a result, millions of people have had to put their lives on hold because of crushing student loan debt and sky-high college tuition.

In August 2022, the Biden administration eased this burden for millions of Americans by canceling $10,000 of student debt for most borrowers, reforming income-based repayment plans to lower monthly payments and cover borrowers’ unpaid monthly interest, and canceling up to $20,000 of debt for Pell Grant recipients — the vast majority of whom come from families making $40,000 or less. This plan will lift up Black and Brown families who are disproportionately burdened by student debt, and it will allow millions of families to finally afford a home, save for retirement, and move into the middle class.

WATCH IT IN ACTION

NEXT: POLLING + WORDS THAT WORK ↓

POLLING + Fast Facts

over 40 million eligible for student debt relief

In the less than four weeks that the application was available in 2022, 26 million people either applied for debt relief or had already provided sufficient information to the Department of Education (Department) to be deemed eligible for relief. Overall, more than 40 million borrowers would qualify for the Biden Administration’s debt relief program.

UNIVERSITIES HIKE UP TUITION ASTRONOMICALLY

Tuition has gone up 308% at public universities and 216% at community colleges in the span of 30 years––far outpacing the growth of salaries and inflation. Forty years ago, the Pell Grant covered about 80% of all costs for low-income students. Now, it barely covers 30% of costs.

IT’S NOT JUST YOUNG PEOPLE

It takes the average student 20 years to pay off student debt, and one in five people paying off a student loan is over the age of 50. Student loan debt is a $1.6 trillion weight burdening 22% of all American families.

STUDENT DEBT CANCELLATION BENEFITS EVERYONE

Full student debt cancellation would boost the economy by $1 trillion over 10 years, creating millions of jobs and letting people buy homes, start businesses and pursue their dreams.

BLACK STUDENTS BURDENED WITH MORE DEBT

In 2012, 81%of Black students who graduated with a bachelor’s degree from a public university borrowed for their degree, compared to the 63%of white students who borrowed to get their bachelor’s degree.

SUPPORT IS RISING FOR DEBT CANCELLATION

62 percent of voters believe that the federal government should eliminate some or all student loan debt, while only 32 percent of voters believe the federal government should not eliminate any student debt.

WE HAVE THE POWER

Over 90% of all student debt is owned by the federal government. That means that we, the American people, own it. We can cancel student debt, give millions back their financial freedom and give our economy a huge boost.

Words that Work

The student debt trap hurts everyone — students, families, and all of our neighborhoods.

We’ve been promised good jobs and prosperity through education, but instead young people are graduating into the worst job market in recent history already saddled with debt.

We all benefit when students can pursue their dreams to start new businesses, buy homes, or start families without a lifetime of debt holding them back.

Decades ago, we decided that K-12 education was a commonsense right that belongs to every American, and in the 21st century, it’s time to extend that right to higher education too.

Debt keeps education out of reach for too many.

We need to ensure America is a place where everyone can dream big, develop the potential of our people, and realize our greatest aspirations.

NEXT: TOOLS + RESOURCES ↓

Tools + Resources

For more information, we have included the following additional resources below. These resources do not necessarily reflect the policy positions of the Progressive Caucus Action Fund.