According to the New York Fed, there are currently over 40 million student loan debtors who owe a collective $1.6 trillion in outstanding loans. While payments were paused by former President Donald Trump, borrowers will be required to start repayments again on Oct. 1, 2023.
The Biden administration has proposed cancelling up to $20,000 in student loan debt for a wide range of borrowers, however, six Republican-led states and two student-loan borrowers are suing over the plan.
Senator Warren maintains that if the Supreme Court follows the law rather than playing politics, they will make it clear that the Republican attempt to stop student-loan debt relief is baseless and that relief will go forward immediately.
Fate of Biden Administration’s Debt-Relief Plan in Supreme Court
The states argue that they have standing to sue because the plan could impact MOHELA, a student-loan servicer created by Missouri’s state legislature, which could then hurt Missouri’s state coffers. Borrowers similarly sued over the debt-relief plan because the Department of Education did not seek public comment on it, depriving them and other stakeholders from weighing in. They believe that this resulted in a policy that arbitrarily benefited some individuals, and not others, like themselves.
Warren Pushes for Student Debt Cancellation
Senator Elizabeth Warren is leading the charge to cancel student debt, which currently totals more than $1 trillion in the United States. Speaking at a recent webinar, Warren emphasized the critical need to provide relief to those who are burdened by student loans.
“I’ve been in this fight for a long time and part of the reason is because it’s personal,” Warren said. “I was the first person in my family to graduate from college. My daddy ended up as a janitor, but I had a chance to go to school because I went to a commuter college that cost $50 a semester.”
Warren believes that the skyrocketing cost of college tuition is the root cause of the student debt crisis. “A young person can pay up to 200% more in tuition than what her parents paid when they went to college, and that’s just fundamentally wrong,” she said.
During her 2020 presidential campaign, Warren popularized the idea that the executive branch has the power to cancel student debt. She continues to push for debt relief, along with other lawmakers and advocates.
“We expect this administration to explore every option available,” Banez said.
As millions of Americans struggle with student debt, Warren remains committed to finding a solution. “That opportunity is just not out there today,” she said. “We owe it to future generations to make sure that education is affordable and accessible to all.”