A resolution calling on the President of the United States to take executive action to broadly cancel Federal student loan debt.

III 116TH CONGRESS 2D SESSION S. RES. 711 Calling on the President of the United States to take executive action to broadly cancel Federal student loan debt. IN THE SENATE OF THE UNITED STATES SEPTEMBER 22, 2020 Mr. SCHUMER (for himself, Ms. WARREN, Mr. BROWN, Mr. DURBIN, Mr. SANDERS, Ms. DUCKWORTH, Mr. BLUMENTHAL, Mr. VAN HOLLEN, Mr. MERKLEY, Mr. MARKEY, Mr. BOOKER, Mr. MENENDEZ, and Mr. WYDEN) submitted the following resolution; which was referred to the Committee on Health, Education, Labor, and Pensions RESOLUTION Calling on the President of the United States to take executive action to broadly cancel Federal student loan debt. Whereas the United States is facing historic public health and economic crises caused by the coronavirus (COVID– 19) pandemic that threatens the financial well-being of nearly every American family; Whereas even before the COVID–19 pandemic, the United States also faced a historic student loan crisis, which is currently holding back our struggling economy and re- stricting opportunity and prosperity for millions of Amer- ican families; Whereas nearly 43,000,000 Americans currently hold more than $1,500,000,000,000 in Federal student loan debt; VerDate Sep 11 2014 01:46 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6300 E:\BILLS\SR711.IS SR711 pamtmann on DSKBC07HB2PROD with BILLS 2 •SRES 711 IS Whereas more than 9,000,000 Federal student loan bor- rowers are currently in default on those Federal student loans; Whereas the COVID–19 economic recession and historic un- employment have compounded stagnant wages, labor market discrimination, and rising costs of living, making it nearly impossible for many Americans to ever fully repay their student loans; Whereas this historic student debt crisis has left millions of Americans less prepared to weather the recession trig- gered by the COVID–19 pandemic as communities of color, which never fully recovered from the devastating effects of the previous economic recession, have been hit hardest by the devastating health and economic con- sequences of the COVID–19 pandemic; Whereas student debt disproportionately impacts borrowers of color, who face the worst effects of the student debt crisis, with— (1) Black students, due to ongoing structural bar- riers that have resulted in persistent racial inequities in incomes and wealth, forced to accrue more student debt and more often than their White peers; (2) Black student borrowers struggling more in stu- dent loan repayment, including defaulting at higher rates than their White peers; (3) nearly half of Black graduates owing more on their undergraduate student loans 4 years after gradua- tion than they did when they received their degree; (4) the median Black student borrower owing 95 percent of their debt 20 years after starting college, while the median White student borrower owing 6 percent of their debt after such period; and VerDate Sep 11 2014 01:46 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6300 E:\BILLS\SR711.IS SR711 pamtmann on DSKBC07HB2PROD with BILLS 3 •SRES 711 IS (5) Latinx student borrowers, who borrow at rates similar to their White peers despite having lower house- hold incomes and significantly less household wealth, are more likely than their White peers to default on their stu- dent loans; Whereas Black students and other students who have at- tended Historically Black Colleges and Universities have had to bear a larger share of student loan debt because of the historic and continued underfunding of these insti- tutions at the State and Federal levels; Whereas student debt cancellation for the families that need it most can substantially increase Black and Latinx household wealth and help close racial wealth gaps; Whereas women hold more than two-thirds of the Nation’s student loan debt and must borrow an average of $3,000 more than men to attend higher education; Whereas, if left unaddressed, the student debt crisis will worsen inequality, exacerbate the current recession, widen the racial wealth gap, and slow economic recovery; Whereas broad student debt cancellation is the most efficient and effective solution to our student debt crisis, would help millions of families, and would remove a significant drag holding back our economy; Whereas broad student debt cancellation would provide imme- diate relief to millions of American families who are struggling during this pandemic and recession, and pre- vent them from having an unsustainable student debt burden waiting for them once this pandemic is over; Whereas broad student debt cancellation would provide a boost to our struggling economy through a consumer- driven economic stimulus, greater home-buying rates and VerDate Sep 11 2014 01:46 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6300 E:\BILLS\SR711.IS SR711 pamtmann on DSKBC07HB2PROD with BILLS 4 •SRES 711 IS housing stability, expanded access to more affordable fi- nancial products including car loans and mortgages, higher college completion rates, and greater small busi- ness formation; Whereas President Donald J. Trump’s Memorandum on Con- tinued Student Loan Payment Relief During the COVID–19 Pandemic, issued August 8, 2020, will expire on December 31, 2020, causing tens of millions of Fed- eral student loan borrowers to enter repayment on New Year’s Day of 2021, including recent graduates facing one of the toughest job markets in recent history; Whereas more than 100 community, civil rights, consumer, and student advocacy organizations have urged student debt cancellation for all borrowers in response to the COVID–19 pandemic public health and economic crises; Whereas Congress has already granted the Secretary of Edu- cation the legal authority to broadly cancel student debt under section 432(a) of the Higher Education Act of 1965 (20 U.S.C. 1082(a)), which grants the Secretary the authority to modify, ‘‘. . . compromise, waive, or re- lease any right, title, claim, lien, or demand, however ac- quired, including any equity or any right of redemption’’; Whereas the United States Department of Education has re- portedly used this authority to implement relief for Fed- eral student loan borrowers during the COVID–19 pan- demic; and Whereas, on June 29, 2020, President Donald J. Trump, with the support of Secretary of Education Betsy DeVos, vetoed H.J. Res. 76 ‘‘Providing for congressional dis- approval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Education re- VerDate Sep 11 2014 02:12 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6300 E:\BILLS\SR711.IS SR711 pamtmann on DSKBC07HB2PROD with BILLS 5 •SRES 711 IS lating to ‘Borrower Defense Institutional Account- ability’ ’’, blocking a resolution that passed Congress with bipartisan support to overturn a Department of Edu- cation rule that makes it harder for defrauded Federal student loan borrowers to see their loans discharged: Now, therefore, be it Resolved, That the Senate— 1 (1) recognizes the Secretary of Education’s 2 broad administrative authority to cancel Federal stu- 3 dent loan debt under the existing authorities of sec- 4 tion 432(a) of the Higher Education Act of 1965 5 (20 U.S.C. 1082(a)); 6 (2) calls on the President of the United States 7 to take executive action to broadly cancel up to 8 $50,000 in Federal student loan debt for Federal 9 student loan borrowers administratively using exist- 10 ing legal authorities under such section 432(a), and 11 any other authorities available under the law; 12 (3) encourages the President of the United 13 States, in taking such executive action, to use the 14 executive’s authority under the Internal Revenue 15 Code of 1986 to ensure no tax liability for Federal 16 student loan borrowers resulting from administrative 17 debt cancellation; 18 (4) encourages the President of the United 19 States, in taking such executive action, to ensure 20 that administrative debt cancellation helps close ra- 21 VerDate Sep 11 2014 01:46 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\SR711.IS SR711 pamtmann on DSKBC07HB2PROD with BILLS 6 •SRES 711 IS cial wealth gaps and avoids the bulk of Federal stu- 1 dent debt cancellation benefits accruing to the 2 wealthiest borrowers; and 3 (5) encourages the President of the United 4 States to continue to pause student loan payments 5 and interest accumulation for Federal student loan 6 borrowers for the entire duration of the COVID–19 7 pandemic. 8 Æ VerDate Sep 11 2014 01:46 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\SR711.IS SR711 pamtmann on DSKBC07HB2PROD with BILLS