[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 100 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. RES. 100
Calling on the President of the United States to take executive action
to broadly cancel Federal student loan debt.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 4, 2021
Ms. Pressley (for herself, Ms. Omar, Ms. Waters, Ms. Adams, Mr. Bowman,
Mr. Torres of New York, Mr. Jones, Ms. Barragan, Mr. Blumenauer, Mr.
Brendan F. Boyle of Pennsylvania, Ms. Bush, Mr. Carson, Ms. Clarke of
New York, Mr. Cohen, Ms. Dean, Ms. Escobar, Mr. Espaillat, Mr. Garcia
of Illinois, Mr. Gomez, Mr. Vicente Gonzalez of Texas, Mr. Grijalva,
Mr. Hastings, Mrs. Hayes, Ms. Jayapal, Mr. Johnson of Georgia, Mr.
Khanna, Mr. Lawson of Florida, Ms. Lee of California, Mr. Levin of
Michigan, Mr. Lowenthal, Mr. McGovern, Ms. Meng, Mr. Nadler, Mrs.
Napolitano, Ms. Norton, Ms. Ocasio-Cortez, Mr. Panetta, Mr. Pocan, Ms.
Schakowsky, Mr. Sires, Mr. Thompson of Mississippi, Ms. Tlaib, Ms.
Velazquez, Mrs. Watson Coleman, Ms. Williams of Georgia, Ms. Wilson of
Florida, Ms. Newman, Mr. Danny K. Davis of Illinois, Ms. Roybal-Allard,
Ms. Bass, Mrs. Carolyn B. Maloney of New York, Mr. Evans, Mr. Cardenas,
Ms. Porter, and Ms. Sewell) submitted the following resolution; which
was referred to the Committee on Education and Labor, and in addition
to the Committee on Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
RESOLUTION
Calling on the President of the United States to take executive action
to broadly cancel Federal student loan debt.
Whereas the United States is facing historic public health and economic crises
caused by the coronavirus (COVID-19) pandemic that threatens the
financial well-being of nearly every American family;
Whereas even before the COVID-19 pandemic, the United States also faced a
historic student loan crisis, which is currently holding back our
struggling economy and restricting opportunity and prosperity for
millions of American families;
Whereas nearly 43,000,000 Americans currently hold more than $1,500,000,000,000
in Federal student loan debt;
Whereas more than 9,000,000 Federal student loan borrowers are currently in
default on those Federal student loans;
Whereas the COVID-19 economic recession and historic unemployment have
compounded stagnant wages, labor market discrimination, and rising costs
of living, making it nearly impossible for many Americans to ever fully
repay their student loans;
Whereas this historic student debt crisis has left millions of Americans less
prepared to weather the recession triggered by the COVID-19 pandemic as
Black and brown communities, which never fully recovered from the
devastating effects of the previous economic recession, have been hit
hardest by the devastating health and economic consequences of the
COVID-19 pandemic;
Whereas student debt disproportionately impacts Black and brown borrowers, who
face the worst effects of the student debt crisis, with--
(1) Black households disproportionately holding the most debt, compared
to other households;
(2) Black students, due to ongoing structural barriers that have
resulted in persistent racial inequities in incomes and wealth, forced to
accrue more student debt and more often than their White peers;
(3) Black student borrowers struggling more in student loan repayment,
including defaulting at higher rates than their White peers;
(4) nearly half of Black graduates owing more on their undergraduate
student loans 4 years after graduation than they did when they received
their degrees;
(5) the median Black student borrower owing 95 percent of his or her
debt 20 years after starting college, while the median White student
borrower would owe 6 percent of his or her debt after such period;
(6) Latino student borrowers, who borrow at rates similar to their
White peers despite having lower household incomes and significantly less
household wealth, being more likely than their White peers to default on
their student loans;
(7) within 6 years of starting school, Latino borrowers being almost
twice as likely to default on their student loans, in comparison to their
White peers; and
(8) women of color, particularly Black women, on average taking on more
student loan debt than members of any other group and being more likely to
face difficulties repaying student loans;
Whereas parents, grandparents, and older individuals are especially vulnerable
to the burden of student loan debt, as people over the age of 50 are
most likely to default on their student loans, and over 114,000 retired
people have had their Social Security benefits garnished due to their
student loans;
Whereas almost one-third of the outstanding Federal student loan debt is held by
individuals who did not complete their degree or program, and nearly 40
percent of Federal student loan borrowers have no degree 6 years after
enrolling in college;
Whereas Black students and other students who have attended historically Black
colleges and universities have had to bear a larger share of student
loan debt because of the historic and continued underfunding of these
institutions at the State and Federal levels;
Whereas student loan debt cancellation for the families that need it most can
substantially increase Black and Latino household wealth and help close
racial wealth gaps;
Whereas women hold more than two-thirds of the Nation's student loan debt and
must borrow an average of $3,000 more than men to obtain higher
education;
Whereas if left unaddressed, the student debt crisis will worsen inequality,
exacerbate the current recession, widen the racial wealth gap, and slow
economic recovery;
Whereas broad student loan debt cancellation is the most efficient and effective
solution to our student debt crisis, would help millions of families,
and would remove a significant drag holding back our economy;
Whereas broad student loan debt cancellation would provide immediate relief to
millions of American families who are struggling during this pandemic
and recession, and prevent them from having an unsustainable student
debt burden waiting for them once this pandemic is over;
Whereas broad student loan debt cancellation would provide a boost to our
struggling economy through a consumer-driven economic stimulus, greater
home-buying rates and housing stability, expanded access to more
affordable financial products including car loans and mortgages, higher
college completion rates, and greater small business formation;
Whereas more than 230 community, civil rights, consumer, and student advocacy
organizations have urged student loan debt cancellation for all
borrowers in response to the COVID-19 pandemic public health and
economic crises;
Whereas canceling up to $50,000 in Federal student loan debt per borrower is the
most equitable way to ensure the benefits of cancellation reach the
borrowers most in need of relief because that action would lift a
disproportionate number of low-income borrowers and Black and Latino
borrowers completely out of student debt, including nearly 90 percent of
all borrowers in the lowest income quintile and over 90 percent of Black
and Latino borrowers in the lowest income quartile;
Whereas borrowers who would receive full student loan debt cancellation if the
Federal Government canceled $50,000 per borrower in student loan debt
have lower income and assets than the borrowers who would receive
partial cancellation if the Federal Government took that action;
Whereas Congress has already granted the Secretary of Education the legal
authority to broadly cancel student debt under section 432(a) of the
Higher Education Act of 1965 (20 U.S.C. 1082(a)), which grants the
Secretary the authority to modify, ``. . . compromise, waive, or release
any right, title, claim, lien, or demand, however acquired, including
any equity or any right of redemption'';
Whereas, in 2020, the Department of Education reportedly used this authority to
implement relief for Federal student loan borrowers during the COVID-19
pandemic; and
Whereas, on June 29, 2020, President Donald J. Trump, with the support of
Secretary of Education Betsy DeVos, vetoed H.J. Res. 76 ``Providing for
congressional disapproval under chapter 8 of title 5, United States
Code, of the rule submitted by the Department of Education relating to
`Borrower Defense Institutional Accountability''', blocking a resolution
that passed Congress with bipartisan support to overturn a Department of
Education rule that makes it harder for defrauded Federal student loan
borrowers to see their loans discharged: Now, therefore, be it
Resolved, That the House of Representatives--
(1) recognizes the Secretary of Education's broad
administrative authority to cancel Federal student loan debt
under the existing authorities of section 432(a) of the Higher
Education Act of 1965 (20 U.S.C. 1082(a));
(2) calls on the President of the United States to take
executive action to broadly cancel up to $50,000 in Federal
student loan debt for Federal student loan borrowers
administratively using existing legal authorities under such
section 432(a), and any other authorities available under the
law;
(3) encourages the President of the United States, in
taking such executive action, to use the executive's authority
under the Internal Revenue Code of 1986 to ensure no tax
liability for Federal student loan borrowers resulting from
administrative debt cancellation;
(4) encourages the President of the United States, in
taking such executive action, to ensure that administrative
debt cancellation helps close racial wealth gaps and avoids the
bulk of Federal student loan debt cancellation benefits
accruing to the wealthiest borrowers; and
(5) encourages the President of the United States to
continue to pause student loan payments and interest
accumulation for Federal student loan borrowers for the entire
duration of the COVID-19 pandemic.
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