Bill Text: NJ SR42 | 2024-2025 | Regular Session | Introduced
Bill Title: Urges President Biden to cancel up to $50,000 per eligible borrower in federal student loan debts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Higher Education Committee [SR42 Detail]
Download: New_Jersey-2024-SR42-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator BRITNEE N. TIMBERLAKE
District 34 (Essex)
SYNOPSIS
Urges President Biden to cancel up to $50,000 per eligible borrower in federal student loan debts.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
A Senate Resolution urging President Biden to use executive action immediately to cancel up to $50,000 per eligible borrower in federal student loan debts.
Whereas, Nearly 43 million people in the United States currently have approximately $1.6 trillion in federal student loan debt; and
Whereas, More than nine million federal student loan borrowers are currently in default of those federal student loans; and
Whereas, Student loan debt prevents people from purchasing a home, starting a family, pursuing a career, completing an education, and participating fully in the economy; and
Whereas, The student loan debt crisis takes a heavy toll on disadvantaged communities and disproportionately burdens women, minorities, and low-income households; and
Whereas, The COVID-19 economic recession and historic unemployment, combined with stagnant wages, labor market discrimination, and rising cost of living have made it difficult for many Americans to ever fully repay their student loans; and
Whereas, President Biden may direct the Secretary of Education to use existing administrative authority under section 432(a) of the Higher Education Act of 1965 (20 U.S.C. 1082(a)) to cancel federal student loan debt on a broad or categorical basis; and
Whereas, The Department of Education has reportedly already used this authority to implement modest relief for federal student loan borrowers during the COVID-19 pandemic; and
Whereas, Cancelling up to $50,000 per eligible borrower in debt would provide student borrowers with much needed financial relief during this pandemic and recession, and prevent them from having unsustainable debt burdens once the pandemic is over; and
Whereas, Broad student loan debt cancellation would provide a boost to the United States economy through consumer-driven economic stimulus, greater home-buying rates, and higher college completion rates; and
Whereas, Debt cancellation would provide relief to families facing economic hardship and help close the racial and gender wealth gaps; and
Whereas, Debt cancellation would make a tangible difference in the lives of millions by alleviating the current threat to financial security; now, therefore,
Be It Resolved by the Senate of the State of New Jersey:
1. This House respectfully
urges President Biden to use executive action to cancel up to $50,000 in
federal student loan debts per eligible borrower.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the President of the United States, Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and to each member of Congress elected from this State.
STATEMENT
This resolution respectfully urges President Biden to support the 43 million people in the United States, which hold approximately $1.6 trillion of federal student loan debt by cancelling up to $50,000 per eligible borrower in student loan debt. This action would provide much needed assistance to the millions of Americans struggling under the burden of crushing student loan debt.
Cancelling student debt would help close the racial wealth gap, provide aid to the disproportionately burdened women, minority, and low-income households, and help families and borrowers as a whole avoid default.
The student debt crisis prevents a swift economic recovery from COVID-19 and further, restricts opportunity and prosperity for millions of Americans and their families. Cancelling the debt would provide consumer-driven stimulus and provide relief for those who are struggling during the pandemic and the associated recession. Student debt cancellation may result in greater home-buying rates and housing stability, expanded access to affordable financial products, higher college completion rates, higher incomes, increased geographic mobility, job creation, higher GDP, and greater small business formation.
