Letter - People Power United sends a letter to Department of Education
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People Power United joined other local, state, and national groups to send a letter to the Department of Education and applauds the Biden Administration for proposing a thorough array of regulations that could provide automatic relief to tens of millions of borrowers and urges the Department of Education to swiftly finalize and implement the rule so that millions of borrowers get the relief they deserve. We also propose ways to strengthen the proposal and call on the Department to unveil its proposed NPRM to provide debt relief for borrowers experiencing hardship.
Shout out to NPRM for leading this effort. Here is the letter sent on behalf of our People Power United membership:
May 17, 2024
U.S. Department of Education
400 Maryland Avenue SW
Washington, DC, 20202
Re: Docket ID ED–2023–OPE–0123
Dear Secretary Cardona,
We the undersigned #### organizations representing millions of students, borrowers, workers, people of color, veterans, people with disabilities, and consumers crushed under the weight of the student loan debt crisis submit this comment in response to the U.S. Department of Education’s (the Department) Notice of Proposed Rulemaking (NPRM), published to the Federal Register on April 17, 2024 to provide student loan debt relief to millions of Americans using available authorities under the Higher Education Act (HEA).
We applaud the Department's ongoing commitment to delivering on President Biden’s promise of sweeping student loan debt relief. For too long, the student loan debt crisis has inhibited homeownership, hindered retirement savings, stifled small business formation, exacerbated racial and economic inequities and widened the racial wealth gap, worsened economic insecurity for the most vulnerable borrowers, including seniors and people with disabilities and worsened health disparities and the mental health crisis. When President Biden was elected, millions of Americans urged him to tackle the student debt crisis as the intergenerational, racial, gender and economic justice issue that it is and we have been proud to see President Biden answer these calls and continue the fight to deliver the relief he has promised. Over the last three years, the Biden Administration has made history delivering an unprecedented $150 billion in student loan debt relief to more than 4 million student loan borrowers by ensuring that borrowers are finally able to get the relief they have been entitled to under federal law.
While the relief delivered thus far has been monumental, tens of millions of borrowers were robbed of sweeping relief when the conservative majority of the Supreme Court struck down President Biden’s original debt relief program. The Biden Administration’s proposed NPRM represents a glimmer of hope for these millions of borrowers and their families that have been forced to wait for nearly two years for much-needed relief. Therefore, it is critical that the Department move swiftly and urgently to finalize and implement these rules and deploy necessary relief to the estimated 30 million working Americans who will benefit from them.
We applaud the Department for proposing a thorough array of regulations that could provide automatic relief to tens of millions of borrowers and urge the Administration to consider the following recommendations to strengthen the proposed NPRM and ensure the final rules are as generous as possible.
Address run away interest for all borrowers by eliminating the arbitrary income caps for borrowers on an Income Driven Repayment (IDR) plan, eliminating or drastically increasing the $20,000 cap on interest relief for all other eligible borrowers, and providing borrowers cancellation of underlying balances. We applaud the Administration’s effort to eliminate runaway interest but worry the current proposal will unfairly exclude borrowers who also desperately need relief—especially Black and brown borrowers in particular, who due to the lack of generational wealth accumulation and ongoing wage discrimination have had to borrow more for college and are more likely to struggle in repayment.
Extend automatic relief for borrowers stuck in repayment for 20/25 years on a rolling basis to avoid a “cliff effect” that will unfairly leave millions of borrowers behind who may have missed this time frame by a mere month. Doing so would build on the improvements the Department has made to the student loan repayment system and set a critical backstop to the efforts under the IDR Account Adjustment.
Provide relief to borrowers who are victims of servicing errors and abuse. While the Biden Administration has held MOHELA and other servicers accountable by withholding payments and requiring servicers to place affected borrowers into short administrative forbearance while errors are fixed, the Administration can and must do more by providing additional pathways to cancel student debt for victims of servicer error.
Immediately unveil proposed NPRM related to supporting borrowers experiencing hardship. We applaud the Department for coming back to the negotiating table to develop a hardship proposal and urge the Administration to also prioritize relief for these borrowers.
Last summer, President Biden stood before the American people and reaffirmed his commitment to deliver student debt relief to millions of working families by utilizing every legal tool available. The proposed NPRM presents a monumental opportunity to ensure this relief becomes a reality for 30 million Americans and their families. It is critical that the Department work with the utmost urgency to ensure that this package of rules is finalized and implemented as swiftly and efficiently as possible. Millions of borrowers and their families have waited long enough. We stand ready to work in partnership with the Biden Administration to push this relief across the finish line.
Sincerely,
******
People Power United champions progressive values and power to the people. We are a group of people who believe in the possibility of change and work to make it happen. Whether it's supporting a candidate, fighting to pass legislation, or working to change our culture, our members are committed to an inclusive and progressive future.