CHICAGO, Ill. (KFVS) – Attorney General Kwame Raoul, along with a coalition of eight attorneys general, is urging President Biden to fully cancel federal student loan debt owed by every federal student loan borrower in the U.S.
According to the attorney general, more than $1.7 trillion is currently owed to the federal government by student borrowers.
The coalition says they want the president to “immediately exercise his authority under the Higher Education Act” to cancel this high figure.
“Without action, the student loan crisis will continue to get worse, stifling economic activity and weighing down families with mountains of debt that they cannot afford to repay,” Raoul said. “While long-term reforms to the student loan system are desperately needed, I urge the Biden administration to take action that will provide immediate relief to student loan borrowers.”
A release from Raoul’s office says he and the coalition argue that a full cancelation of student debt is necessary to address the sheer enormity of debts owed, systemically flawed repayment and forgiveness systems and the disproportionate impact of the debt burden on millions of borrowers.
The coalition goes on to say that the cancelation of federal student loan debts will reduce stress and mental fatigue and provide countless opportunities for borrowers, such as saving for retirement and purchasing new homes.
Additionally, they argued that canceling federal student loan debt could largely aid in closing the racial wealth gap.
According to the release, Raoul’s office announced a $1.85 billion national settlement with Navient earlier this year which includes nearly $5 million in restitution payments and more than $133 million in debt cancelation for Illinois borrowers.
Student borrowers who have questions or are in need of assistance may call the Attorney General’s Student Loan Helpline at (800) 455-2456.
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May 4, 2022 at 07:42PM