Washington, D.C.– The Senate voted today in favor of a resolution under the Congressional Review Act (CRA) that seeks to dismantle President Biden's historic student debt relief plan and force millions of borrowers into retroactive repayment of their student loans, including waived interest.
The bill also nullifies the Biden administration’s latest income-driven repayment (IDR) and Public Service Loan Forgiveness (PSLF) reforms, and reverses student loan forgiveness already approved for tens of thousands of borrowers under PSLF, immediately creating a financial burden for military service members, government first responders, public school teachers and other public service workers.
In response, Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending (CRL), made the following statement:
We oppose the Senate's choice to abandon student loan borrowers at this crucial time in history. It is reckless and irresponsible and can push millions into delinquency or default, exacerbating the financial burdens they already face. While the effects of the pandemic may be receding, the monumental task of rebuilding our nation remains far from over. By abruptly restarting payments without providing student debt relief, lawmakers are placing a financial burden on tens of millions of Americans, including low-wealth individuals, women and people of color, and hindering their ability to contribute actively to the nation's economy.
We urge the President to veto this bill upon its arrival at his desk. It is imperative that he stands firm in his promise to support substantial student debt relief. Now more than ever, swift action is needed to protect the future of student loan borrowers and ensure a fair and just society for all.
Last week, the House passed the CRA resolution to block student debt forgiveness and reinstate student loan payments.
- Overturning student debt relief through the Congressional Review Act will have devastating consequences for student loan borrowers.
- Recent updated data from the Consumer Financial Protection Bureau (CFPB) shows that millions of student loan borrowers are likely to struggle once their monthly student loan payments are reinstated. The study also shows how student debt cancellation may substantially reduce the number of borrowers at risk when the payment moratorium ends.
- At the beginning of the month, a coalition of 261 organizations sent Congress a letter asking them to reject efforts to use the CRA to retroactively reverse the federal student loan payment moratorium and block the President’s student debt relief plan.
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