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student debt
'Death Should Not Be the Only Relief': Seniors Lead Their First Action Against Student Debt
"This week for the first time in history, older student debtors have gone to Washington to demand our student loan debts get canceled in our lifetime, not at our funerals," one older debtor said.
Sep 13, 2024
Carrying mock tombstones reading, "Death is not a relief plan" and "Stop burying us in debt," a group of older debtors held the first-ever senior-led mass action for student debt relief outside the White House on Thursday.
Borrowers over 50 are the fastest-growing demographic of student debtors, and some of them are calling on the Biden-Harris administration to take advantage of federal regulations that empower the Department of Education to cancel debt based on age.
"The only comprehensive student debt relief plan that the federal government offers right now is death," Debt Collective creative media strategist Maddie Clifford said in front of the White House. "That is the only way people can escape from these student loan payments."
The participants in the vigil, who collectively owe more than $1 million in student loans and include members of the Debt Collective's "50 Over 50" caucus, shared their stories as they demanded relief.
"I would have never imagined approaching my 60th birthday with $211,388 worth of student debt," said Renita Walker, a Debt Collective member from Sandy Springs, Georgia. "The idea itself is paralyzing. It is the realization that I will probably work myself to death, literally."
Walker took out loans both to continue her education as a single mother after her husband died and to help her two children pay for school. The loan payments ballooned to the point that she was paying $1,800 a month until she took money out of her 401(k) to bring the payment down to around $1,300 a month, still more than her mortgage.
"I just want to say like many of the people here standing behind me, this was not something we asked for," Walker said. "Unfortunately, the system is broken and we have to live with the results of that."
"For decades, millions of older debtors have crouched in shame, imagining ourselves as failures when in reality the system has failed us. But we will no longer be duped into suffering alone."
Fellow Debt-Collective member and Georgia resident Athena Blue, a 67-year-old retired nurse, also took out Parent Plus loans to pay for her children's education.
Blue spoke of overcoming the shame of indebtedness by learning the history of how former U.S. President Ronald Reagan had pushed for the current student loan system in order to make it more difficult for working-class Americans to attend university as a backlash to campus protests in the 1960s and 70s.
"The debt that I'm in isn't my fault," Blue said. "It was created purposely by people like former President Ronald Reagan who believed that only certain people should have the right to higher education."
Blue said she had managed to pay off all of her interest on her loan in 2020 when it was transferred to another provider and she had to start over.
"This burden of a loan threatens my retirement," Blue said, "So how can you, Congress, the Department of Education, and the White House allow this to continue? How can you allow seniors to be subject to predators like this? Have you no moral compass? No shame?"
Debt Collective member Alicia Barnes, who joined the Navy to avoid taking on any more debt, said she had discovered in a meeting with the Department of Education that day that her service provider had illegally placed her debt into default while she was deployed.
"Instead of including a Suicide Hotline for veterans on every piece of communication we receive, the causes of these tragedies should be met with real solutions including absolving some of the debt we accrued during our service because of this compounded interest and illegal activity by these debt collectors," Barnes said.
Every speaker at Thursday's vigil was a woman, as are the majority of student loan debtors. A disproportionate number of student debtors are Black women in particular.
Many of the speakers went into debt to pursue careers in public service fields like education, pastoral counseling, and social work.
"We are caring human beings that wanted to help out the world," said Debt Collective member Mary Donahue of Maryland. "We just need a little help."
The Debt Collective insists that "death should not be the only relief plan for their old, unpayable student loans."
"Decades of broken student relief programs, corrupt loan services, and government neglect have meant that millions of older Americans dragged decadesold student debts into their retirement," said Gail Gardner, who is 77 years old and owes $549,497.20. "Absent swift, bold policy change, and clear political leadership, this crisis will only deepen. The debtors will get older. The debts will get bigger."
That is why she said she had joined with other older debtors to "demand the White House and the Department of Education finally take responsibility for clearing the student debts burdening myself and millions of older Americans."
Both Gardner and Clifford pointed out that discharging debts based on age was something that the Biden-Harris administration could do without running afoul of right-wing attempts to block President Joe Biden's other attempts at student debt relief.
"We are urging the Biden Harris administration to work as fast and as hard as Republicans are working to keep us in debt to free borrowers from these loans, and they can do it today," Clifford said.
Gardner concluded: "For decades, millions of older debtors have crouched in shame, imagining ourselves as failures when in reality the system has failed us. But we will no longer be duped into suffering alone. This week for the first time in history, older student debtors have gone to Washington to demand our student loan debts get canceled in our lifetime, not at our funerals. We can't afford to wait."
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'Dangerous': Judge Blocks Student Debt Relief Rule That Doesn't Exist Yet
"Opponents of democracy are terrified that they will lose again at the ballot box in November and are rushing to right-wing judges to hamstring democratic governance," said one observer.
Sep 05, 2024
A Republican-appointed U.S. federal judge in Georgia raised eyebrows and objections Thursday after taking what observers called the "unprecedented" step of blocking a rule that hasn't even been finalized in order to stop the Biden administration from implementing a plan to deliver promised debt relief to millions of student borrowers.
U.S. District Judge for the Southern District of Georgia James Randal Hall issued an order blocking the Biden administration's proposed federal student debt relief rule. Hall—an appointee of former President George W. Bush—granted a motion by a coalition of right-wing state attorneys general to preempt the rule's eventual implementation.
"The court is substituting its judgment for those elected to serve the public," American Federation of Teachers president Randi Weingarten said in response to the ruling. "It subverts the democratic process and denies relief to student loan borrowers, many of whom rely on debt relief programs already advanced by the Biden-Harris administration."
"This court's unprecedented decision to block a rule that does not yet exist is not only bad for the 30 million borrowers who were relying on the administration to deliver much-needed relief," she continued. "It's a harbinger of the chaos and corruption right-wing judges seek to force on the American people."
Mike Pierce, executive director of the Student Borrower Protection Center—which called the ruling "dangerous and unprecedented"—denounced Hall for preventing the Biden administration from delivering student debt relief "even though no plan has been finalized."
"This is an extraordinary break with precedent and a brazen move by the conservative movement to shift even more power to unelected, unaccountable red-state judges," he said. "Opponents of democracy are terrified that they will lose again at the ballot box in November and are rushing to right-wing judges to hamstring democratic governance."
"This is the clearest sign yet that Project 2025 is already terrorizing student loan borrowers through a slow-moving judicial coup," Pierce added, referring to a conservative coalition's agenda for a far-right takeover of the federal government—which critics warn would worsen the U.S. student debt crisis.
Biden's proposal would forgive some or all student debt for around 30 million borrowers who have been repaying undergraduate loans for at least 20 years, or graduate loans for 25 years.
Hall's order is based on what he said was the plaintiffs' "substantial likelihood of success on the merits given the rule's lack of statutory authority" and U.S. Education Secretary Miguel Cardona's "attempt to implement a rule contrary to normal procedures."
"This is especially true in light of the recent rulings across the country striking down similar federal student loan forgiveness plans," he added.
The U.S. Supreme Court's right-wing supermajority last year struck down Biden's initial plan to relieve up to $20,000 in federal scholastic debt for around 40 million borrowers, and last month the justices kept in place a sweeping suspension of the administration's Saving on a Valuable Education (SAVE) program, which aims to lower monthly repayments and hasten loan forgiveness.
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Right-Wing Supreme Court Keeps Pause on Biden's Student Debt Relief Effort
"I reckon the U.S. Supreme Court does not like millions of people being able to afford to make payments on their student loans," said one journalist who had benefited from the SAVE program.
Aug 28, 2024
Millions of student loan borrowers whose monthly payments had been reduced by U.S. President Joe Biden's latest attempt to achieve debt relief were thrown into limbo Wednesday as the right-wing majority on the Supreme Court ruled in favor of a sweeping suspension of the president's policy.
After several Republican-led states filed lawsuits against the Saving on a Valuable Education (SAVE) program, the U.S. Court of Appeals for the 8th Circuit ruled last month that the program should be paused while it evaluated the merits of the case.
The Biden administration had asked the high court to clear the way for SAVE to go back into effect, allowing 8 million Americans enrolled in the program to make monthly loan payments based on their incomes.
Mike Pierce, executive director of the Student Borrower Protection Center, said the Supreme Court "bought into the 8th Circuit's legal fiction that pausing affordable payments is 'preserving the status quo,'" issuing a ruling he denounced as "bullshit."
Under SAVE, which has already cleared debts for 400,000 borrowers, the Biden administration reduced monthly payments for undergraduate loans to 5% of the borrower's discretionary income, down from 10%. Loans of $12,000 or less were to be canceled after 10 years instead of 20-25 years, as long as the borrower made required payments.
The administration argued that the program was in accordance with a 1993 law allowing the secretary of education to establish "income contingent repayment" plans based on "the appropriate portion of the annual income of the borrower."
After the lower court's earlier ruling, Education Secretary Miguel Cardona said the court had rejected "a practice of providing loan forgiveness that goes back 30 years."
Ashton Pittman, an editor for the Mississippi Free Press, said the program had reduced his monthly student loan payments so that he was "finally able to reliably make them each month."
"But I reckon the U.S. Supreme Court does not like millions of people being able to afford to make payments on their student loans," said Pittman.
The Debt Collective, a national student loan borrowers union, suggested the latest ruling—which comes over a year after the Supreme Court struck down a broader student debt relief plan from Biden—shows that the fight for debt forgiveness cannot be won through the federal court system.
The Debt Collective has joined progressive lawmakers and other groups in calling for the Department of Education to cut ties with the Missouri Higher Education Loan Authority (MOHELA), which services federal student loans and which Missouri Attorney General Andrew Bailey said would lose revenue if student debt cancellation is allowed to move forward.
"Biden is losing in court because he is not being politically or legally savvy," said the group after the 8th Circuit ruling was announced. "He should fire MOHELA and issue cancellation swiftly and automatically through an executive order and issue pause."
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