Student Debt Cancelation Act
Sponsor: Rep. Ilhan Omar
While college is more important — and expensive — than ever before, according to the U.S. Department of Education, average tuition prices has more than doubled at U.S. colleges and universities over the past three decades and many borrowers have found themselves unable to repay their student loans. Today nearly 45 million Americans collectively hold over $1.6 trillion dollars in student loan debt.
As the COVID-19 pandemic continues to devastate workers, families, and the economy, the burden of student loan debt has compounded the financial distress of millions of American. During this unprecedented crisis, no one should have to choose between paying their student loan payment, putting food on the table or keeping themselves and their families safe and healthy.
My legislation will provide debt relief for the 45 million workers and families who are being crushed by student debt by cancelling all existing federal and private student loans.
For decades, our nation invested in its students – and in its future – by providing a low-cost or tuition-free college education to everyone willing to work hard and succeed. Then, this public investment was slashed. Instead, we convinced people to borrow for their own education by promising prosperity and advancement.
This bill that will create prosperity for all and help a generation of Americans achieve the opportunities that were promised to them by the higher education system. The American Dream tells us that those who work hard will secure a better future. The Student Debt Cancellation Act will make sure that dream can become a reality.
The Levy report illustrates how student loan debt forgiveness would create an enormous middle-class stimulus, boost overall growth, increase home purchases, and fuel a new wave of small business formation. This will boost the economy by $1 trillion over 10 years, creating millions of jobs. Freedom from student debt will create prosperity – not just for the 44 million, but for everyone.