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Senate committee weighs economic impact of student loan debt forgiveness – FOX23 News

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Senate committee weighs economic impact of student loan debt forgiveness – FOX23 News


WASHINGTON, D.C. — More than 40 million Americans carry student loan debt today, totaling roughly $1.75 trillion.

Members of a Senate Committee on Thursday heard from financial experts about the economic impact of the debt and potential solutions.

“Instead of achieving the American dream, borrowers are trapped in economic debt and economic instability,” said Sen. Sherrod Brown (D-OH), Chair of the Senate Committee on Banking, Housing and Urban Affairs. “The Biden administration has the power to change the financial lives and future of millions of borrowers by forgiving meaningful portions of student loan debt.”

>>>MORE: SCAM ALERT: How to protect your identity, student loan accounts from scammers.

The panel heard from two witnesses echoing that call for student loan debt forgiveness.

“Rising debt produces fewer homeowners and more credit card debt, jeopardizes secure retirements, and drives intergenerational debt,” said Mike Pierce, Executive Director of the Student Borrower Protection Center. “Canceling student debt is just. It is equitable. It is legal and it is the only appropriate response to decades of government mismanagement and industry abuse.”

Last month, the U.S. Department of Education announced fixes to the income-based repayment (IDR) plan which will bring relief for some borrowers.

“Federal Student Aid (FSA) estimates that these changes will result in immediate debt cancellation for at least 40,000 borrowers under the Public Service Loan…

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