John,
President Biden has just announced that he approved $9 billion in student loan forgiveness for 125,000 Americans, primarily for borrowers working in the federal government, those in income-driven repayment plans, and those with disabilities.
This is a critical step forward, but we need to go further. Federal student loan debt exceeds $1.6 trillion, making home ownership, family planning, and retirement out of reach for too many Americans. Experts are predicting that consumer spending will fall by about $14 billion now that student loan payments have resumed.
Furthermore, SAVE, President Biden’s income-driven repayment plan, has encountered issues since launching in August. Although the plan promised to save borrowers at least $1,000 a year, the Education Department estimated that 420,000 borrowers have faced payment errors due to program calculation problems, with some borrowers being billed nearly $300 more a month than what they were originally told.
Democrats cannot afford to stand by and watch this economic disaster unfold. We need to listen to young people and make education affordable and accessible for all. I’ve put forward a plan designed to do just that, by extending the moratorium on student debt payments, forgiving student debt up to $50,000, stopping interest on student debt from accruing, and expanding debt relief programs.
Tell President Biden: Adopt the Khanna Plan and cancel student loan debt up to $50,000.
