U.S. Senators Alex Padilla and Elizabeth Warren Co-lead Letter Urging Biden Administration to Extend the Payment Pause and Cancel Student Debt

April 1, 2022 - WASHINGTON, D.C. — On Thursday, U.S. Senator Alex Padilla (D-Calif.) joined Senators Elizabeth Warren (D-Mass.), Raphael Warnock (D-Ga.), Majority Leader Chuck Schumer (D-N.Y.), and Representatives Ayanna Pressley (D-Mass.), Ilhan Omar (D-Minn.), Pramila Jayapal (D-Wash.), and House Majority Whip James E. Clyburn (D-S.C.) in leading a letter to President Biden urging his administration to act now to extend the pause on federally-held student loan payments until at least the end of the year and to provide meaningful student debt cancellation.

"Given the fast-approaching deadline for borrowers to resume payments, your administration must act as quickly as possible to extend the pause and make clear to the American public your intention to cancel a meaningful amount of student debt. We look forward to supporting your administration in getting it done," wrote the lawmakers.

In California, over 45 percent of students graduate with student debt and the average debt of those with loans is over $21,000, according to a study by the Institute for College Access & Success. The payment pause has been a significant investment throughout the pandemic, providing essential relief to millions of families during the economic and public health crisis, and saving borrowers an average of $393 per month. Borrowers have greatly benefited from the ongoing payment pause, taking the opportunity to pay down other debt, relieve financial pressures from lost jobs or decreased earnings, and support their families' needs. Restarting repayment will financially destabilize many borrowers, and will cause hardship for many who cannot afford repayment. Most borrowers are not financially prepared to shoulder another bill as they face skyrocketing costs for necessities like food and gas.

"Canceling student debt is one of the most powerful ways to address racial and economic equity issues. The student loan system mirrors many of the inequalities that plague American society and widens the racial wealth gap," continued the lawmakers. "Student debt cancellation must be one of the key actions in your comprehensive approach to advance equity as our nation works to rebuild a stronger and more equitable economy."

Nearly 4 million Californians owe $147 billion in student debt, with Black and Latino residents facing the highest rates of default and delinquency. According to new analysis from the Roosevelt Institute, debt cancellation could add more than $173 billion to the nation's GDP in the first year alone.

Joining the letter in the House are Representatives

Sylvia R. Garcia (D-Texas), Frank Pallone (D-N.J.), Nanette Diaz Barragán (D-Calif.), Paul D. Tonko (D-N.Y.), Troy A. Carter (D-La.), G. K. Butterfield (D-N.C.)