Leaders Call For Canceling Student Loan Debt

By Davaughnia Wilson | Published Feb 24, 2022

Dr. Lamont Repollet engaged in a virtual roundtable discussion with U.S. Senator Bob Menendez and other prominent New Jersey leaders to advocate for student loan debt cancellation. 

The roundtable featured Sen. Cory Booker; Ryan Haygood, president of the New Jersey Institute for Social Justice; Richard Smith, president of the New Jersey NAACP; Velva Dawson, a New Jersey resident; and Kean students Jason Pleitez, and Delia Latini to urge the Biden Administration to cancel up to $50,000 in student loan debt per person before the emergency deferment period ends on May 1, 2022. 

“Senator Booker and I have been advocating for this for a while now, and we are fortunate to have with us today a tremendous group of advocates and leaders who have dedicated their lives to education and issues of social justice,” Menendez said.

The Higher Education Act of 1965 grants President Biden the authority to cancel student loan debt without an act from congress. Canceling student loan debt according to Menendez would be good for the country’s economic recovery.

“The education data initiative estimates that canceling student loan debt could grow our gross domestic product by over $600 billion over the next six years, create 1.5 million new jobs and lift up to 5.2 million households out of poverty,” Menendez said. “Conversely, resuming student loan payments on May 1 without any forgiveness would drain about $85 billion from the US economy over the next year.”

Nationally, 40 million student loan borrowers owe collectively $1.6 trillion in student loan debt. In New Jersey, according to data from the US Department of Education, more than 1.1 million borrowers have amassed $42 billion in federal student loan debt. In New Jersey, there are 1.3 million borrowers who pay on average $310 per month on their student loans.

Haygood explained that though New Jersey is one of the wealthiest states in America, it has one of the worst racial wealth gaps.

“[It was] reinforced over generations of racially discriminatory policy decisions that connected white people to wealth and separated people of color people from it,” Haygood said.

Canceling student loan debt would transform the lives of millions of borrowers, especially those living in poor low income, and minority communities. People of color are drowning in student loan debt as they owe an average of $25,000 more in comparison to their white counterparts.

Menendez explained that this issue is personal as he is a first-generation college student from a daily of refugees. He said that college is more expensive now than it was when he graduated in 1976. Currently, a Pell Grant covers just about 29 percent of a low-income student’s college cost, while it covered over 75 percent of his annual cost in 1976. 

“It is no wonder that borrowers are drowning in $1.6 trillion student loan debt and that we have 9 million borrowers in default. Our federal investments in college affordability have not kept pace with rising costs,” Menendez said.

As the pandemic wreaked havoc on the nation, especially communities of color and minority communities, Democrats have fought to provide relief to borrowers. The emergency deferment period was successfully extended multiple times, and they pushed for the reform of the public service loan forgiveness program.

The emergency deferment period suspended student loan payments. Normally, undergraduate students have to begin paying their loans six months after leaving college or if they drop below half-time enrollment. Graduate students begin repaying their loans as soon as school begins.

Additionally, Sen. Menendez and Elizabeth Warren’s Student Loan Tax Relief Act was successfully joined into the American Rescue Plan. This ensures that borrowers who qualify for debt forgiveness are protected from huge surprise tax bills.

“But these are small victories in a much bigger fight,” Menendez said.

Booker stated that before the federal student loan repayment starts, immediate steps should be taken, such as suspending wage garnishment from borrowers and automatically removing eligible borrowers from default status.

“I believe that we, as a nation, need to provide immediate relief. We need to reform the student loan system, we need to expand Pell Grants, and we need to start investing in the next generation as opposed to saddling them with unprecedented debt,” Booker said. 

Booker stated that the burden is falling on those who come from humble backgrounds, immigrants, and those that are from disproportionately marginalized communities, who are struggling to manifest the American dream.

Dawson, a Howard graduate, and New Jersey resident said it has been over 20 years since she graduated college, and she is still paying her student loans.

“The debt after graduating has been crushing and yes 20 plus years later we are still paying,” Dawson said. “For so many years our monthly payments didnt put a dent in the principal of our loans.”

According to Booker, student debt has inhibited the lives of borrowers and has forced them to delay life choices such as buying a home and starting a family.

Smith explained that canceling student loan debt will assist Black and brown borrowers in building wealth, starting families, purchasing homes, and setting up small businesses, all of which will enable the American economy to move forward.

Repollet joined the discussion by saying, as a proud minority and Hispanic serving institution, Kean University students graduate with debt far below the national average. He added that more than 60 percent of Kean students receive grants or scholarships.

“Yet, even here at Kean with all of our efforts and our focus on keeping a Kean University degree affordable, senator, many of our students graduate with debt that saddles them as they launch their professional lives,” Repollet said.

Haygood explained that once upon a time, student loans were a valuable resource for helping students achieve economic mobility, but now, ‘they serve to entrap Black and brown students.’

He added that as colleges and universities become more racially diverse, there is a reduction in funding for education, leaving students with the financial burden to pay for college.

Pleitez, a senior majoring in Business Management and president of the Student Government Association said that education is important, and everyone should be able to seek higher education and accomplish their goals without the fear of accumulating lifelong debt.

“We’re not only graduating with a degree we are graduating with a debt that comes along with it,” Pleitez said.

He explained that he has been blessed with both a supportive family and an institution such as Kean, which has committed itself to affordable tuition as well as scholarships and financial aid for those in need.

Latini, a junior majoring in communication studies, wishes to further her education by going to law school. She explained, however, that the debt that she has accumulated thus far, affects every decision that she has to make to further her education.

“As a country, we simply must find solutions for these graduates and help them launch their careers and support their families. It will benefit generations of college students and contribute to a healthier economy,” Repollet said.

---