Senator Bob Menendez today repeated his calls to President Biden to cancel student loan debt up to $50,000 by exercising his executive authority through the Higher Education Act of 1965. The renewed push comes as student loan payments are set to resume in less than 60 days while the majority of Americans are still feeling the devastating economic impact brought by the COVID-19 pandemic. The emergency deferment period, which was put in place in March of 2020, is currently set to expire on January 31, 2021.

“For many New Jerseyans, particularly people of color, crippling student loan debt has turned the promise of a college education into a financial burden that plagues them for decades. That financial nightmare existed long before the COVID-19 pandemic laid bare the deep disparities that exist for communities of color and low-income communities. For far too long, incomes have failed to keep pace with the rising cost not only of education but also health care, housing, child care, and other basic living expenses. When you are barely keeping your head above water it is nearly impossible to make a dent in your student loan principal.

“Student loan forgiveness has the power to unleash a wave of consumer-driven growth in this country—and President Biden does not need Congress to do it. The time is now for the president to use his authority to cancel up to $50,000 in student loan debt. This relief would transform the lives of millions of Americans, especially poor, low-income and minority communities, narrow the racial wealth gap, and provide a much-need shot in the arm to our economy.”

This week, Public Citizen, Student Debt Crisis Center, Student Borrower Protection Center and other student loan forgiveness advocates are hosting a Week of Action calling on President Biden to cancel up to $50,000 in student loans.

Earlier this year, Sen. Menendez authored the Student Loan Tax Relief Act, along with Senator Elizabeth Warren, which exempts forgiven student loans from tax liability through 2026, and worked successfully to have it included in the American Rescue Plan. As a result of those efforts, the average student loan borrower will now save $2,200 in taxes for every $10,000 of forgiven student loans. In February, Sens. Menendez and Warren supported a bicameral resolution calling on the administration to use its authority to cancel up to $50,000 in student loan debt for federal borrowers. Sen. Menendez also has long-advocated for reform of the Public Service Loan Forgiveness (PSLF) program, which has faced scrutiny for mismanagement since its inception in 2007, with only 1 to 2 percent of PSLF applicants being approved each year. In October, the Biden-Harris Administration proposed a sweeping overhaul of the PSLF Program.

According to Lending Tree, there are an estimated 1.3 million borrowers in New Jersey holding $48.8 billion in public and private student loan debt, with an average balance of more than $33,000 or bills of $310 per month on average. More than 43 million Americans hold a combined $1.6 trillion in federal student loan debt, with more than 9 million borrowers in default.