NCL urges ED to erase student debt, improve permanent pathways to cancellation

July 24, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – Last week, the National Consumers League (NCL) filed comments in a U.S. Department of Education (ED) regulatory process that will enable the Department to broadly cancel student debt. This newest debt cancellation initiative came after NCL urged the administration to utilize alternate authorities following the Supreme Court’s misguided judgement against the first debt cancellation program. 

“President Biden and Secretary Cardona correctly recognized that we need to address the debt burden associated with getting an education,” said NCL Public Policy Manager Eden Iscil. “They have an opportunity to substantially improve the lives of millions of borrowers through a number of options available with this process the Department initiated.” 

In its comments to ED, NCL advocated for universal student debt cancellation without unnecessary administrative burdens on borrowers. Such burdens likely prevented millions of eligible borrowers from applying to the first cancellation program and significantly delayed its implementation. In addition to one-time debt cancellation, this process will empower ED to improve its permanent cancellation pathways under its income-driven repayment (IDR) plans to allow debt relief to be accessible in the future as well. 

Currently, IDR plans use all-or-nothing debt cancellation, with student debts erased only after several years in repayment (usually 20-25 years). Such a system relies on student loan servicers, ED, or borrowers not making a single mistake in filing paperwork for decades—something almost 6 out of 10 borrowers do. Under NCL’s proposal, borrowers would receive incremental forgiveness. For example, a borrower who is currently eligible for 100% debt cancellation after 10 years of repayment would instead see 10% of their principal balance erased each year for a decade.  

NCL’s full comments to the Department can be found here.  

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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

NCL urges Ed Secretary to deliver relief to student borrowers using all options available 

June 30, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – Today, the Supreme Court of the United States decided to deny relief to more than 40 million student borrowers. Despite the Supreme Court’s misguided ruling, the administration has a number of options still available to deliver relief to borrowers. The National Consumers League (NCL) urges President Biden and Education Secretary Cardona to implement debt cancellation without delay. 

“A majority of justices have chosen to ignore the facts of the case, from the plaintiffs’ lack of standing to the administration’s plain legal authority to act, in favor of worsening the student debt crisis,” said NCL Public Policy Manager Eden Iscil. “Fortunately, today’s decision only applies to one statute, the HEROES Act. The administration has a responsibility to protect borrowers by utilizing its remaining options under the Higher Education Act.” 

Data on student loan payments estimate that the average borrower will owe between $400 and $500 per month. With repayment set to begin in September, millions of student loan borrowers will default on their debts and face significant financial hardship without debt relief. Indeed, President Biden cited this as a primary reason for his cancellation program. These facts have not changed—9 million borrowers will likely be unable to make payments on their student debts should the Department of Education fail to act. 

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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

National Consumers League applauds President Biden’s plan to cancel $10,000 in federal student loan debt to millions of Americans

August 24, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832 

WASHINGTON, D.C. – The National Consumers League applauds President Biden’s decision to relieve student borrowers of billions of dollars in educational debt and to extend the federal loan repayment moratorium. By cancelling $10,000 in student debt for borrowers earning less than $125,000 and cancelling $20,000 for borrowers who received Pell Grants, this administration is providing direct aid to consumers suffering from the plight of educational debt.

The following statement is attributable to NCL Executive Director Sally Greenberg:

“President Biden is providing critical assistance to millions of borrowers across the country. Importantly, this executive order will work to negate the impact of student debt that disproportionately affects women and Black borrowers. As consumers face increased rents, grocery costs, fuel prices, and even student loan interest rates, educational debt cancellation will help provide relief on strained household budgets by reducing—and in many cases eliminating—student debt costs.”

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About the National Consumers League (NCL) 

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.