For Immediate Release:
Friday, February 19, 2021
Contact:
Laura Brewer (919) 716-6484
(RALEIGH) Attorney General Josh Stein today urged President Joe Biden to take action to reduce the burden of student debt, which has become even greater for student borrowers and their families during the COVID-19 crisis. Attorney General Stein encourages President Biden reduce student debt, including canceling some debt where lawful and appropriate. Attorney General Stein’s letter is attached.
“The federal student loan program is fundamentally broken and has failed many students in a number of ways,” said Attorney General Josh Stein. “The issues facing students borrowers have been exacerbated by the current pandemic and economic downturn, which makes the job market bleak. They are in dire need of relief. I know this is a priority for President Biden, and I urge him to act on their behalf as soon as possible.”
In his letter, Attorney General Stein points out several ways students have been harmed by the federal student loan process:
- Students were promised loan forgiveness in exchange for working in public service have found it nearly impossible to see that release – less than 2 percent of applicants’ loans have been forgiven.
- Loan servicers hired by the federal government have inappropriately steered many students into programs that have made things worse for them and increased the amount of their debt.
- Students who were defrauded by for-profit colleges find it difficult, if not impossible to have their student loans discharged through the federal process that is supposed to provide relief.
It is estimated that 40 percent of recent student borrowers who have debt have no degree to show for it, which significantly hinders their ability to pay.
A copy of the letter is available here.
More from Attorney General Stein on student debt:
- Student borrower relief during COVID
- Paying for College
- Attorney General Josh Stein Wins $330 Million in Debt Relief for ITT Students
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