Student Loan Debt Cancellation Provides Much Needed Relief for Working People

Today, President Biden announced plans to forgive $10,000 in student loan debt for borrowers making less than $125,000 — and $20,000 in debt for students who received Pell Grants — and extended the pause on remaining federal student loan payments through the end of the year. This action brings much needed relief to millions of Americans who have spent years struggling for their education, and particularly helps people of color, who take on far more debt than white borrowers.

Canceling student loan debt for low-income students and working people will be a boon for the economy, giving historically marginalized groups and those struggling to reach the middle class the opportunity to build wealth and capitalize on the promise of higher education. Research shows that student debt cancellation will allow low-income households to save money and accumulate spending power, without contributing to inflation.

Sarah Baron, campaign director of Unrig Our Economy, said:

“Americans are told that they need to get a college education to escape poverty, to be financially stable, or to get ahead, so it’s ridiculous that the thing keeping them down or stuck is student loan debt. While cancellation will have a negligible impact on inflation, the impact will be life-changing for borrowers and working people from all walks of life who no longer have to worry about their debt every day. Unrig Our Economy applauds President Biden for fulfilling his campaign promise and providing economic justice to millions of Americans.”