Rep. Davis Statement on President Biden Cancelling Student Loan Debt

“I applaud President Biden for taking this important step to cancel up to $20,000 of borrowers’ federal student loan debt,” said Rep. Davis.  “This unprecedented relief will lessen the crushing student loan burden for approximately 40 million borrowers, providing much-needed relief to the Chicagoans I represent.  Forgiving $10,000 for all borrowers earning less than $125,000 and for families earning less than $250,000 will provide immediate relief and lower payments for my constituents.  Forgiving up to $20,000 for low-income students who needed Pell Grants to access quality, affordable education is essential because poverty should not obstruct educational opportunity.  Of the over 300,000 households I represent, about two-thirds earn less than $125,000 a year and almost half earn less than $60,000, the typical qualifying income level for Pell Grants. The Biden student loan forgiveness promises to help the over 1.6 million Illinoisans who owe $62.3 billion in loans.  I am proud that my success in making loan forgiveness non-taxable means that borrowers benefiting from the Biden loan forgiveness will not have a higher tax bill.”

“I also praise the President both for extending the pause on student loan repayment, interest, and collections and for proposing a new repayment plan to cap payments at 5 percent of income while preventing ballooning debt by covering unpaid interest.  Student debt relief builds on the Democrats’ landmark Inflation Reduction Act that will lower healthcare and energy costs to help save Americans money.  I urge the Administration to implement these new policies quickly, and I promise to continue to fight to lower the cost of higher education, reform the student loan program, and increase the value of the Pell Grant.”

“I would love to have seen and strongly support $50,000, however $10,000 and $20,000 is a good start and we must keep on pushing.” said Rep. Davis.