Rep. Ilhan Omar's Statement on the Biden Administration's Plan for Student Debt Relief:

WASHINGTON D.C. – Statement from Congressional Progressive Caucus Deputy Chair Ilhan Omar (MN-05) on the President’s New Plan for Student Debt Relief:

“I applaud the administration for this proposal and urge swift action to provide this desperately needed relief. While this proposal does not achieve universal student debt cancellation that I have advocated for, the Biden administration's newly unveiled student debt relief plans represent a bold and much-needed response to the student debt crisis impacting millions of Americans.

The new proposed rule is responsive to asks made by CPC Chair Jayapal, Senator Elizabeth Warren (D-MA), Representative Ayanna Pressley (MA-07), CPC Deputy Chair Ilhan Omar (MN-05), and Senator Bernie Sanders (I-VT) in a January 2024 letter.

The Administration’s new plans, if finalized as proposed:

• Would automatically cancel interest balances built up to date for 25 million borrowers, with 23 million likely to have all of their balance growth forgiven.  Specifically, the plan would cancel up to $20,000 of the amount a borrower’s balance has grown due to unpaid interest on their loans after entering repayment, regardless of their income. Low and middle-income borrowers enrolled in the SAVE plan or any other income-driven repayment (IDR) plan would be eligible for the entire amount their balance has grown since entering repayment to be canceled;
• Would automatically cancel debt for borrowers otherwise eligible for relief through the SAVE plan, Public Service Loan Forgiveness, or other forgiveness opportunities like closed school loan discharges but who have not successfully applied for that assistance. The Administration expects this action would cancel debt for around 2 million borrowers across the country;
• Cancel debt for borrowers who've been enrolled in repayment for 20 years for undergraduate loans and 25 for graduate school loans. Borrowers would not need to be on an income-driven repayment plan to qualify;
• Would cancel student debt for loans associated with institutions or programs that lost their eligibility to participate in the Federal student aid program or were denied recertification because they cheated, took advantage of students, closed, or failed to provide sufficient value; and
• Would cancel student debt for borrowers experiencing hardship in their daily lives that prevents them from fully paying back their loans now or in the future, such as borrowers who are at high risk of defaulting on their student loans, who could be eligible for automatic relief, or families who are burdened with other expenses like medical debt or child care who can apply for relief in the future.

If implemented, these plans would be a game-changing, life-altering development for millions of Americans crushed by the weight of student loans. I will continue to fight until student debt cancellation is achieved for all.”