Calling on the President of the United States to take Executive action to broadly cancel Federal student loan debt.

IV 116TH CONGRESS 2D SESSION H. RES. 1269 Calling on the President of the United States to take Executive action to broadly cancel Federal student loan debt. IN THE HOUSE OF REPRESENTATIVES DECEMBER 17, 2020 Ms. PRESSLEY (for herself, Ms. OMAR, Ms. ADAMS, Ms. WATERS, Ms. DEAN, Ms. LEE of California, Ms. JAYAPAL, and Mrs. HAYES) submitted the fol- lowing resolution; which was referred to the Committee on Education and Labor, and in addition to the Committee on Ways and Means, for a pe- riod to be subsequently determined by the Speaker, in each case for con- sideration of such provisions as fall within the jurisdiction of the com- mittee concerned 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; VerDate Sep 11 2014 00:02 Dec 18, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6300 E:\BILLS\HR1269.IH HR1269 pamtmann on DSKBC07HB2PROD with BILLS 2 •HRES 1269 IH Whereas nearly 43,000,000 Americans currently hold more than $1,500,000,000,000 in Federal student loan debt; 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 VerDate Sep 11 2014 00:02 Dec 18, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6300 E:\BILLS\HR1269.IH HR1269 pamtmann on DSKBC07HB2PROD with BILLS 3 •HRES 1269 IH the median White student borrower owing 6 percent of their debt after such period; and (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; VerDate Sep 11 2014 00:02 Dec 18, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6300 E:\BILLS\HR1269.IH HR1269 pamtmann on DSKBC07HB2PROD with BILLS 4 •HRES 1269 IH Whereas broad student debt cancellation would provide a boost to our struggling economy through a consumer- driven economic stimulus, greater home-buying rates and 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 while President Donald J. Trump’s Memorandum on Continued Student Loan Payment Relief During the COVID–19 Pandemic, issued August 8, 2020, was ex- tended until January 31, 2021, millions of borrowers continue to experience unprecedented economic insecu- rity, face one of the toughest job markets in recent his- tory and will continue to need long-term relief; 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 Department of Education has reportedly used this authority to implement relief for Federal student loan borrowers during the COVID–19 pandemic; 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- VerDate Sep 11 2014 00:02 Dec 18, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6300 E:\BILLS\HR1269.IH HR1269 pamtmann on DSKBC07HB2PROD with BILLS 5 •HRES 1269 IH approval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Education re- 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 House of Representatives— 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 VerDate Sep 11 2014 00:02 Dec 18, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\HR1269.IH HR1269 pamtmann on DSKBC07HB2PROD with BILLS 6 •HRES 1269 IH (4) encourages the President of the United 1 States, in taking such Executive action, to ensure 2 that administrative debt cancellation helps close ra- 3 cial wealth gaps and avoids the bulk of Federal stu- 4 dent debt cancellation benefits accruing to the 5 wealthiest borrowers; and 6 (5) encourages the President of the United 7 States to continue to pause student loan payments 8 and interest accumulation for Federal student loan 9 borrowers for the entire duration of the COVID–19 10 pandemic. 11 Æ VerDate Sep 11 2014 00:02 Dec 18, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\HR1269.IH HR1269 pamtmann on DSKBC07HB2PROD with BILLS