House passes bill to write off $ 10,000 in private student loans for every borrower

This article has been updated to reflect the fact that this law was passed by the House on July 21, 2020.

Representative Madeleine Dean (D-PA) introduced legislation to write off private student loan debt in response to the coronavirus pandemic and economic recession.

Introduced as an amendment to the last reauthorization of the National Defense Authorization Act, Dean’s proposal would provide for a $ 10,000 private student loan forgiveness for each borrower.

“We cannot ignore the hurting private student loan borrowers,” Dean said in a Tweeter. “My amendment currently being debated on the floor would provide up to $ 10,000 in immediate relief to some 4.5 million private student loan borrowers. This amendment is good for borrowers and for our economy. Private student loan borrowers have been excluded from the student loan relief provisions of the CARES Act.

Republicans have castigated Dean’s proposal. Representative Blaine Luetkemeyer (R-MO) accused Democrats of trying to “socialize all student debt”.

Representative Dean’s amendment is just the latest Democratic proposal to write off student loan debt in response to the coronavirus pandemic. Rep. Ayanna Pressley (D-MA) recently called for a blanket cancellation of $ 30,000 student debt to address the economic crisis and long-standing racial injustices. “The average borrower has $ 30,000 in [student loan] debt – [cancelling that] will revive the economy ”, she said recently told Yahoo Finance. “Black student borrowers borrow and default more than anyone because of our inability to build generational wealth. I see it as a racial justice issue.

Recently, more than 100 civil rights and consumer organizations called on Congress to write off student loan debt on a large scale. House and Senate Democrats have offered $ 10,000 in general student loan forgiveness. And former Vice President Joe Biden, the alleged Democratic presidential candidate, recently reaffirmed its support for the widespread cancellation of student loans.

Update, July 21, 2020: The House adopted the amendment of Rep. Dean.

Further reading

Rep. Ayanna Pressley: Cancel Student Loan Debt Now

Biden reaffirms plan to cancel student debt and reduce racial inequalities

NAACP and 60 other groups call on Congress to write off student debt

Would forgiving student loans reduce racial inequalities?

2020 election has unprecedented implications for student loan borrowers

There are now five plans for waiving student loans – how do they compare?

Widespread forgiveness of student loans more likely than ever – here’s why

Joe Biden calls for widespread forgiveness of student loans