SEATTLE, WA – Today Representative Adam Smith (D-Wash.) released the following statement after President Biden announced that he would cancel $20,000 of federal student loan debt for Pell Grant recipients and $10,000 of student debt for non-Pell Grant recipients for individuals making less than $125,000 per year. The new plan also includes an important provision to allow individuals to cap repayment of undergraduate loans at 5% of their monthly income.
“Today’s action by President Biden will help ease financial barriers and promote economic opportunity for millions of individuals and families across the country. While this will bring relief to millions of student loan borrowers, Congress must work together to reform our postsecondary education system and make investments that will lower the cost of colleges and universities throughout the U.S. so that students are not burdened by such significant debt in the future. This means bringing down the cost of four-year institutions, making community and technical colleges tuition free, and better enabling pathways to good-paying jobs such as Registered Apprenticeships. Regardless of income or wealth, individuals should have access to postsecondary educational opportunities and job training programs without being saddled with a mountain of debt for their degree or credential.”
A fact sheet about the Biden-Harris Administration's Student Debt Relief Plan can be found here.