Bonamici Statement on Student Loan Forgiveness

Statement

Congresswoman Suzanne Bonamici (D-OR) issued the following statement following President Biden's announcement about targeted student loan forgiveness.

"The Biden administration's historic decision to forgive up to $20,000 in student loan debt will transform the lives of millions of hardworking Americans," said Congresswoman Suzanne Bonamici."I applaud President Biden for taking bold action that provides relief to borrowers who need it most -- Pell Grant recipients and those with debt but no degree. Pell Grant recipients are eligible for up to $20,000 of debt forgiveness; other non-Pell Grant borrowers are eligible for up to $10,000 of forgiveness. The President's action will completely eliminate student debt for millions of borrowers and reduce the outstanding balance for millions more. Borrowers of color are more likely to qualify for Pell Grants, so this relief is an important step toward addressing generational wealth inequality.

"The President's announcement is the most far-reaching in a long list of actions taken by the Biden administration to support student borrowers, reform the federal student loan system, and make our nation's colleges and universities more affordable. To date, this administration has approved $32 billion in loan forgiveness for about 1.6 million borrowers nationwide who have worked in public service, attended institutions engaged in fraudulent practices, and more. Borrowers across Oregon are benefitting from this proactive approach to addressing the student debt crisis. The Department of Education's Public Service Loan Forgiveness (PSLF) waiver identified 2,050 Oregonians holding $120.2 million in federal student loans for forgiveness. The Department also approved $102.5 million in loan forgiveness for an additional 8,650 Oregon borrowers who were defrauded by the predatory and misleading tactics of Corinthian Colleges, Inc. The Department also provided forgiveness of outstanding student loan debt held by 2,090 Oregon borrowers who attended the predatory institution ITT Tech between 2005-2016. These three actions alone amount to nearly $260 million in financial relief for Oregonians.

"Congress must now pursue targeted policies that build on the Biden administration's actions to support borrowers and address long-term college affordability. I have introduced and am working to pass several bills that will make college more affordable for students before, during, and after their education, especially for the most vulnerable and marginalized students.

My SIMPLE Act would make it easier for more borrowers to access income-driven repayment plans to minimize their monthly student loan payments upon completing their education. This will complement the Biden Administration's recent proposed rule to improve income-driven repayment.
My Opportunities for Success Act would make the Federal Work Study program more generous, target students with financial need, improve access to meaningful career-related work experience for students, and provide incentives to colleges that focus on the academic and professional success of low-income students.
My Student Loan Borrower Safety Net Act would protect borrowers with federal student loans following the end of the student loan repayment pause by simplifying borrowers' ability to enroll in income-driven repayment plans, increasing access to economic hardship support, improving outreach to borrowers regarding the resumption of payments, and providing a longer grace period for borrowers who miss a payment.
My Students and Young Consumers Empowerment Act would leverage the Consumer Financial Protection Bureau to protect student borrowers and provide relevant and timely information about the student loan marketplace.
I also enthusiastically supported a historic increase to the Pell grant in the Fiscal Year 2022 enacted budget and a proposed increase in Fiscal Year 2023 budget.

"I remain committed to working with Secretary Cardona and my colleagues in Congress to provide all eligible borrowers with the relief they need to thrive. And I look forward to continuing our work to improve access to affordable, high-quality higher education."

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