Student Loan Forgiveness ‘Historic Win' For Americans: Watson Coleman

SOUTH BRUNSWICK, NJ — Congresswoman Bonnie Watson Coleman (NJ12) welcomed President Joe Biden’s announcement that he will forgive $10,000 in federal student debt for most borrowers, calling it a “historic win for hardworking Americans.”

Watson Coleman said she was proud Biden heeded the calls to provide debt relief, but a lot needs to be done to reduce the racial wealth gap.

On Wednesday, Biden announced he will forgive $10,000 in federal student loans and will cancel up to $20,000 for Pell Grant recipients. The relief is limited to Americans earning under $125,000 per year or 250,000 for married couples or heads of households. More: Biden Cancels $10K In Student Loan Debt For Some NJ Borrowers

“Since President Biden took office, my House colleagues and I have called on President Biden to deliver broad student debt relief to alleviate the millions of borrowers who have struggled under the burden of the high costs of education and outrageous interest rates,” Watson Coleman said in a statement. “I’m proud that today President Biden has heeded those calls and delivered historic relief.”

The Biden administration also proposed to cap repayment of undergraduate loans at 5 percent of their monthly income, which is a decrease from the current 10 percent.

“Cancelling up to $20,000 in student debt is life changing for millions of Americans including the 1 in 4 Black borrowers who would see their debt eliminated completely. Additionally, the capping of repayment of undergraduate loans at 5 percent of their monthly income and maintaining the moratorium on payments through the end of the year will help many as the economy continues its recovery from the COVID-19 pandemic,” Watson Coleman said.

Although it falls short of Biden's initial campaign promise, the announcement is expected to galvanize young voters ahead of the midterm elections, according to advocates. But Watson Coleman said a lot needs to be done to close the racial wealth gap. “Though more must be done to close the racial wealth gap – and I will continue to work with my colleagues in Congress to help borrowers still struggling to make payments – make no mistake, this is a historic win for hardworking Americans.”

More than 40 million Americans have student debt and borrowers owe over $1.7 trillion in cumulative debt.

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