Biden Administration Announces Student Loan Debt Relief Plan for Thousands of Borrowers
In June 2023, the U.S. Supreme Court ruled against President Biden’s student loan debt forgiveness plan. Under the plan, millions of student loan borrowers could qualify for up to $20,000 in debt relief. The Supreme Court's decision restored student loan payments to thousands of borrowers who had their loan payments paused due to financial hardships caused by the global pandemic.
Even before the pandemic, the burden of student loan debt weighed heavily on Americans of all social status, many of whom were low-income students who took out student loans as their only way to get an education.
Now, people are drowning in debt unable to build wealth and secure a future for their families because of high student loan payments and interest on student loans. The ramifications of delinquencies and defaults are many and could be disastrous for Americans who are trying to secure a line of credit for a car, a home, or a business loan narrowing the possibilities of establishing wealth or a way of life free from financial strain.
This is reality is especially daunting for young Americans who are recent graduates who are unable to keep up with payments as start their lives in debt.
In July of last year, the U.S. Department of Education announced that it will forgive the loans of more than 800,000 borrowers who are eligible for income-driven repayment (IDR) loan forgiveness plan and launch the Saving on a Valuable Education (SAVE) plan for a total of $39 billion dollars in discharged student loans.
This month, the Biden administration announced plans to provide student loan relief to an additional 277,000 borrowers. According to a fact sheet released by the U.S. Department of Education, the plan will provide $3.6 billion worth of relief to nearly 206,800 borrowers through the SAVE plan; $3.5 billion for 65,800 borrowers through administrative adjustments to the IDR payment plan; and $300 million in student loans for 4,600 borrowers through fixes to Public Service Loan Forgiveness (PSLF).
The NCC recognizes that more can be done to ease the financial burden on Americans. We also acknowledge the actions of the Biden Administration on this issue as a step in the right direction. We continue to call on all elected officials to act with conscience and compassion and do everything within their power and influence to provide economic relief to those most in need.
ICYMI: NCC Calls on the Senate to Pass The American Families and Workers Tax Relief Act
As the Senate convenes this week after a two-week long state work period, the National Council of the Churches of Christ in the USA is strongly urging the chamber to pass H.R. 7024, The American Families and Workers Tax Relief Act of 2024, without further delay.
In February of this year, the House of Representatives overwhelmingly passed H.R. 7024. Despite concessions from Senate Finance Committee Chairman Ron Wyden, the bill has stalled over concerns raised by a handful of Senate Republicans.
NCC implores the Senate to support this critical legislation that will support roughly 16 million children in low-income families and lift more than 400,000 children out of poverty in its first year.
According to the Senate Finance Committee and House Ways and Means Committee, H.R. 7024 will:
Expand access to child tax credit though a phased increase to the refundable portion of the child tax credit for 2023, 2024, and 2025.
Eliminate the penalty for larger families to ensure the child tax credit phase-in applies fairly to families with multiple children; and
Provide inflation relief by adjusting the tax credit for inflation starting in 2024.
Read more about H.R. 7024 in this fact sheet.
Further delays or rescission of parts of H.R. 7024 will have a detrimental impact as millions of families struggle to make ends meet and are unable to provide the most basic needs for their children. The Child Tax Credit would provide these families with additional money to pay for housing and transportation, buy groceries, clothing, and pay for childcare. Support through this legislation can make a huge difference in the lives of real people.
The Holy scriptures compels us to help those in need. The Psalmist David declares, “those who oppress the poor insult their Maker, but those who are kind to the needy honor him (Psalm 14:31, NRSVUE).” The NCC implores our member communions to join us in advocating for the least among us and reach out to your Senators between now and the end of the week (find your Senators’ contact information here) and urge them to support the Tax Relief for American Families and Workers Act now.
No comments:
Post a Comment