Cancel Student Debt
Now, more than ever, is the time to cancel student debt.
As a result of the ongoing COVID-19 crisis, Goldman Sachs is predicting a record-breaking 24% drop in U.S. GDP for the second quarter of 2020. Young people are being hit particularly hard by the economic downturn: 52% of people under the age of 45 have lost a job, been put on leave, or had their hours reduced due to the pandemic, compared with 26% of people over the age of 45. Nearly half said that the $1200 stimulus checks would cover just a week or two of expenses, compared with a third of older adults.
Cancelling student debt, even partially, would provide direct relief for many struggling young Americans, enabling them to better cope with the economic fallout from COVID-19 and helping them to focus on health and family.
The CARES Act suspended student debt payments–but only on federally-held federal student loans, and only six months’ time. An estimated one in five borrowers have commercially-held FFEL loans or Perkins loans, meaning they were not accounted for in the provision. Even those covered are unlikely to reach financial stability by October, when the six-month period ends. Student debt cancellation would offer sustainable economic relief to all borrowers, strengthening the financial health of families both now and into the future.
Even before the COVID-19 crisis, student debt cancellation has been lauded as a way of boosting the economy. Studies project a GPB boost of up to $108 billion per year and 1.5 million jobs per year. A handful of leaders, including Elizabeth Warren, Ilhan Omar, and Bernie Sanders, have advocated for the idea over the past few years–what better moment to make it happen than now?
Join us in urging Congress to #CancelStudentDebt in the next COVID-19 Stimulus package!
Including student debt cancellation in the 4th COVID-19 Stimulus Bill would support struggling young people and boost the economy during this crisis.
Join us in urging Congress to #CancelStudentDebt next COVID-19 Stimulus package!