Multiple attorneys general sent a letter Friday to Congress expressing support for measures to cancel federal student loan debt of up to $50,000 for each borrower.
The top legal officers in the District, Maryland and Virginia are among 17 urging legislators to adopt two resolutions calling on President Biden to wipe out the debt using his executive authority.
“Our offices routinely receive complaints from borrowers who are unable to navigate the abstruse and opaque repayment or forgiveness plans available under current law,” the letter states. “When borrowers are unable to manage their federal student loan repayment, the consequences can be catastrophic.”
More than 90% of student loans come from the federal government instead of private lenders.
Only 2% of people who applied for a loan discharge under the Public Service Loan Forgiveness program have reportedly been approved. It takes at least 10 years to become eligible for a discharge because borrowers are required to make 120 monthly payments toward their loans while working full-time for a qualified employer.
The attorneys general also said many recipients owe more than they were loaned and one in five borrowers are in default.
“Terrible mismanagement of federal student loan programs has left student-borrowers with an enormous amount of debt, often after being persuaded to take out loans for educational programs that offered no real hope of meaningful employment,” Maryland Attorney General Brian Frosh said in a statement.
The four-page letter also points to other reasons fueling the issue including: disability, illness, job loss, low fixed incomes, predatory for-profit colleges and the COVID-19 pandemic.
• Emily Zantow can be reached at ezantow@washingtontimes.com.
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