Presidential Action to Forgive Thousands in Federal Student Loan Debt for Millions of Americans Celebrated by Louisiana Congressman Carter

Louisiana / Washington, D.C. – On August 24, 2022, Congressman Troy A. Carter, Sr. of Louisiana celebrated President Biden’s announcement that his administration will deliver targeted debt relief for millions of federal student loan borrowers.

Even after accounting for inflation, the total cost of both four-year public and private institutions has nearly tripled since 1980, according to Congressman Carter. However, government assistance has not kept pace. Pell Grants used to pay over 80% of the cost of a four-year public college degree for students from working families, but currently only cover 33%. This disparity, combined with soaring tuition, has forced many students to borrow in order to obtain a degree. According to the Department of Education, undergraduate students with loans now graduate with an average debt of $25,000 per year.

The President’s decision specifically forgives $20,000 in federal student debt for Pell Gant recipients and $10,000 for non-Pell beneficiaries who earn less than $125,000 per year. It also extends the student loan payment moratorium through December 31, 2022, makes structural improvements to make the student loan system more sustainable for present and future borrowers, and safeguards borrowers and taxpayers against excessive rises in education prices. More information on the student loan forgiveness announcement may be found here and in this fact sheet.

Congressman Carter has been an outspoken supporter of student loan forgiveness in Congress, and the Student Loan Relief Act of 2021 was one of the first proposals he submitted on Capitol Hill. Following the announcement by the President, Congressman Carter issued the following statement:

“America regularly forgives the debt of businesses, industries, and even small countries. Today, President Biden stood with working Americans and communities of color to forgive up to $20,000 of federal student loan debt and extend to the payment pause for four more months.

“Along with helping Americans struggling with higher costs pay their bills, President Biden’s bold actions today will bring long-needed relief to student loan borrowers and allow them to seek more opportunities in the future.

“Today’s historic student debt cancellation brings possibility and new hope for the approximately 43 million Americans burdened by the heavy load of federal student loan debt – a symptom of the greater affordability crisis within our nation’s higher education system.

“In the long term, we must fix our broken higher education and workforce development system that drives people, especially people of color, into enormous debt for the degrees and education required to be successful in today’s workforce.

“Pursuing a dream today should not put a permanent shadow over the future. Education is a lifelong endeavor, key to growing and evolving – it should not come with a lifelong sentence of debt.

“As an advocate for my constituents and for student loan forgiveness, this is a great day, but we still need to do more. Congress must build on the President’s action today and pass legislation such as my Student Loan Relief Act of 2021 so that every American can pursue their dreams.”

Congressman Carter indicated that the decision builds on the Biden Administration’s previous commitment to equal student loan relief. They have also cancelled $32 billion in student debts for public officials, disabled students, and students who have faced fraud or closure since January 2021.