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AG Nessel Calls for Full Cancelation of Federal Student Loan Debt
May 05, 2022
LANSING – Michigan Attorney General Dana Nessel joined a multistate coalition of eight attorneys general in urging President Biden to fully cancel federal student debt owed by every federal student loan borrower in the country.
In a letter to President Biden, Nessel and the coalition stress that immediate relief is needed for borrowers struggling with the unmanageable burden of student loan debt. The attorneys general acknowledge the administration’s commitment to addressing the issue, however, the coalition urges President Biden to immediately exercise his authority under the Higher Education Act to cancel all federal student loan debt for every borrower.
“Hardships created by the pandemic – and the subsequent hold on loan payments – prove we are equipped to cancel student debt once and for all,” Nessel said. “I stand with my colleagues in asking President Biden to bring this much-needed relief to millions of borrowers across the country.”
Currently, student borrowers owe more than $1.7 trillion to the federal government. In their letter, the coalition argues that a full cancelation of student debt is necessary to address the sheer enormity of debts owed, systemically flawed repayment and forgiveness systems, and the disproportionate impact of the debt burden on millions of borrowers.
While state attorneys general have taken key actions to ease debt burdens wherever possible, the coalition contends that only permanent action by the Biden administration can provide the widespread relief that is needed by millions of federal student loan borrowers.
The coalition further argues that the cancelation of federal student loan debts will reduce stress and mental fatigue and provide countless opportunities for borrowers, such as saving for retirement and purchasing new homes. Additionally, the attorneys general state that cancelling federal student loan debt can substantially help close the racial wealth gap.
Joining Attorney General Nessel in sending today’s letter to President Biden are the attorneys general of New York, Hawaii, Illinois, Minnesota, New Mexico, Puerto Rico, and Washington.