Pingree: With Cancellation of Student Debt, President Biden Has Improved Financial Health of 48 Million Americans

Press Release

Today, President Biden took action to help federal student loan borrowers by cancelling up to $10,000 in debt and extending the payment pause. Congresswoman Chellie Pingree (D-Maine) is applauding the announcement:

"For the past two years, the zero-interest payment pause has been a lifeline for millions of borrowers, easing the financial burden that unfairly comes with pursuing higher education. But the truth is, America faced a student debt crisis long before the pandemic. About 1 in 5 Americans have student loan debt. They are our family, our neighbors, our friends; businessowners, teachers, nurses, doctors. President Biden's announcement today not only fulfills a campaign promise--it will improve the lives of more than 48 million Americans, including tens of thousands of Mainers.

"Waiving $10,000 of student debt and extending the zero-interest payment pause is an important step towards addressing the crisis that has been crushing Americans for decades. Now, we must rethink our system that fostered this crisis in the first place: charging taxpayers seeking an education interest on their own money."

Throughout the pandemic, Pingree has pushed the Biden administration to waive interest on federal student loans and continue to pause payments during the ongoing public health emergency. Most recently on August 1, Pingree joined dozens of House Democrats in urging President Biden and U.S. Education Secretary Miguel Cardona to extend the student loan payment pause before payments were set to resume on August 31.

Pingree is a cosponsor of the Zero-Percent Student Loan Refinancing Act, which would allow Americans with student loans to refinance to an interest rate of 0% until December 31, 2024, giving them the same opportunity to take advantage of the current low-rate environment that so many borrowers in other sectors of the economy have utilized.

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