Sponsored by:
Assemblyman REGINALD W. ATKINS
District 20 (Union)
Assemblywoman LINDA S. CARTER
District 22 (Middlesex, Somerset and Union)
Assemblywoman ANGELA V. MCKNIGHT
District 31 (Hudson)
Co-Sponsored by:
Assemblymen Stanley, Caputo, Assemblywoman Speight and Assemblyman Spearman
SYNOPSIS
Urges President Biden to cancel all federal student loan debts.
CURRENT VERSION OF TEXT
As introduced.
A Joint Resolution respectfully urging President Biden to cancel all federal student loan debts using executive action.
Whereas, Nearly 43 million people in the United States currently have approximately $1.7 trillion in federal student loan debt; and
Whereas, The skyrocketing cost of higher education and outstanding federal student loan debt prevents many Americans from purchasing a home, starting a family, opening a business, and fully participating in the economy; and
Whereas, Borrowers are burdened with high monthly payments and ballooning balances, placing a significant financial burden on the middle-class; and
Whereas, The student loan debt crisis has had a disproportionate impact on disadvantaged communities and disproportionately burdens women, minorities, and low-income households; and
Whereas, Cancellation of all federal student loan debts would provide relief to families facing economic hardship and help close the racial and gender wealth gaps; and
Whereas, President Biden has the authority to direct the Secretary of Education to cancel federal student loan debt on a broad or categorical basis under the federal “Higher Education Relief Opportunities for Students Act of 2003”; and
Whereas, The Department of Education has reportedly already used this authority to implement modest relief for federal student loan borrowers during the COVID-19 pandemic and President Biden has used this authority to cancel up to $20,000 in federal student loan debt per eligible borrower; and
Whereas, Though the President’s most recent administrative action to cancel up to $20,000 in federal student loan debt per eligible borrower will help overburdened borrowers, cancelling all federal student loan debts would provide relief to an additional 30 million Americans; and
Whereas, Broad student loan debt cancellation would provide a boost to the United States economy through consumer-driven economic stimulus, greater home-buying rates, and higher college completion rates; and
Whereas, New Jersey residents owe $43 billion in federal student loan debt and cancellation of all federal student loan debt would positively impact New Jersey’s economy; and
Whereas, Student debt cancellation would help over one million borrowers in New Jersey build wealth, invest in their futures, and achieve their full potential; and
Whereas, Federal student loan debt cancellation would make a tangible difference in the lives of millions and allow for faster upward economic mobility; now, therefore,
Be It
Resolved by the Senate and General Assembly of
the State of New Jersey:
1. The Governor and the Legislature of New Jersey respectfully urge President Biden to cancel all federal student loan debts using executive action.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Secretary of the Senate or the Clerk of the General Assembly to the President of the United States, the United States Secretary of Education, and to each member of the United States Congress elected from this State.
3. This joint resolution shall take effect immediately.
STATEMENT
This resolution respectfully urges President Biden to cancel all outstanding federal student loan debts.
Nearly 43 million people in the United States currently have approximately $1.7 trillion in federal student loan debt, inhibiting them from purchasing a home, starting a family, opening a business, and full participating in the economy. As the cost of higher education has skyrocketed, borrowers have been burdened with high monthly payments and ballooning student loan balances. Federal student loan debt places a significant financial burden on the middle-class, disproportionately impacts disadvantaged communities, and disproportionately burdens women, minorities, and low-income households.
Under the “Higher Education Relief Opportunities for Students Act of 2003,” the President has the authority to direct the Secretary of Education to cancel federal student loan debt on a broad or categorical basis. This practice has been used previously to provide relief for borrowers during the COVID-19 pandemic and to cancel up to $20,000 in federal student loan debt per eligible borrower.
Cancellation of federal student loan debts would provide a boost to the economy through consumer-driven economic stimulus, greater home-buying rates, and higher college completion rates. In New Jersey, residents owe $43 billion in federal student loan debt and cancellation of this debt would help over one million New Jersey residents build wealth, invest in their futures, and achieve their full potential.