Rep. Cleaver Applauds President Biden’s Latest Student Debt Relief Proposal

April 10, 2024
Press Release

(Washington, D.C.) – Today, U.S. Representative Emanuel Cleaver, II (D-MO) applauded President Biden’s latest proposal to provide student debt relief to Americans across the country. If enacted, the plan would bring the number of borrowers who have seen some or all of their debt forgiven during the Biden-Harris Administration to more than 30 million.

“When President Biden ran for office in 2020, he promised to use every tool available to cancel student debt for as many borrowers as possible—and I applaud his commitment to fulfilling that promise to the hardworking families in Missouri and beyond who have done everything right and are still being weighed down by crushing student debt,” said Congressman Cleaver. “If enacted, the President’s most recent plan would provide financial relief to over 30 million Americans, giving them an economic lifeline that will not only uplift these households directly, but also the communities that benefit from increased economic activity generated from this proposal.”

President Biden’s latest plans build on his previous efforts to provide student debt relief and would fully eliminate accrued interest for 23 million borrowers, cancel the full amount of student debt for 4 million borrowers, and provide more than 10 million borrowers at least $5,000 in debt relief. These plans include:

  • Canceling runaway interest for millions of borrowers. Currently more than 25 million borrowers owe more than they originally borrowed, including many who have made years of payments, due to interest rates on Federal student loans.
  • Automatically canceling debt for borrowers eligible for forgiveness programs like SAVE, PSLF, and others, but have not applied for those programs.The Biden-Harris Administration has already taken historic action to strengthen the PSLF program and bring $62.5 billion in student debt cancellation to more than 871,000 public servants who have applied—including nearly 19,000 teachers, first responders, firefighters, non-profit workers, and government employees in Missouri.
  • Canceling debt for borrowers who entered repayment 20 years ago or more if they have undergraduate loans and 25 years ago or more if they have graduate loans.
  • Canceling debt for borrowers who enrolled in low financial value programs. If finalized as proposed, this plan would cancel student debt for loans associated with institutions or programs that lost their eligibility to participate in the Federal student aid program or were denied recertification because they cheated or took advantage of students. Further, borrowers who attended institutions or programs that closed and failed to provide sufficient value— for example that leave graduates with unaffordable loan payments or earnings no better than what someone with a high school diploma earns— would be eligible for relief under this proposal.
  • Canceling debt for borrowers experiencing hardship in their daily lives, preventing them from being able to pay back their loans now or in the future.

Unfortunately, Republican Attorneys General in numerous states have already launched a lawsuit to block this relief from getting to families across the country.

“Just as Republicans have blocked an extension of the Child Tax Credit, opposed efforts to lower insulin and prescription drug costs for seniors, and tried to kill investments in American manufacturing that are creating good-paying jobs, it’s not surprising to see Republican officials fighting to prevent this relief from getting to families and workers,” said Congressman Cleaver. “However, no matter how many times Republican elected officials try to block him, they shouldn’t be surprised that President Biden continues to go to bat for working- and middle-class families, and I’m proud to stand right there with him. As this litigation is ongoing, I highly encourage Missourians to apply for the PSLF Program or a SAVE Plan today to receive immediate relief.”

Individuals on an income-driven repayment plan can visit StudentAid.gov/IDR for more information.

Missouri teachers, firefighters, government employees, and any other categories of public servants can visit StudentAid.gov/PSLF to find more information and apply for relief.

 

Emanuel Cleaver, II is the U.S. Representative for Missouri's Fifth Congressional District, which includes Kansas City, Independence, Lee's Summit, Raytown, Grandview, Sugar Creek, Greenwood, Blue Springs, North Kansas City, Gladstone, and Claycomo. He is a member of the exclusive House Financial Services Committee and Ranking Member of the House Subcommittee on Housing and Insurance.