Statement on Senate Resolution to Cancel Student Debt | Press Release
September 17, 2020
BOSTON – Today, Senate minority leader Chuck Schumer and Senator Elizabeth Warren proposed a Resolution calling on the President to cancel up to $50,000 in federal student loan debt for 43 million Americans. The Senators cite a Project on Predatory Student Lending legal analysis which outlines the President’s legal authority to direct the Secretary of Education to cancel student loan debt. Congress vested the Secretary of Education with broad authority to cancel or modify debt owed under the federal student loan programs in the Higher Education Act. Today’s Resolution urges the Secretary of Education to use that authority to relieve the shared economic distress of families and close the racial wealth gap by cancelling education debt.
The following is a statement from Eileen Connor, Legal Director of the Project on Predatory Student Lending.
“We represent over a million former students of predatory for-profit colleges who are trapped in unconscionable debts by institutions that failed to do their job or worse, took advantage of the federal student loan program while the Department of Education did nothing to stop them. These students and their families are unfairly bearing the consequences of a failed system of debt-financed higher education. Today, we commend Senators Schumer and Warren for taking action to end student loan debt for millions of Americans. This resolution does not call for changing the law, instead it compels the government to use its existing authority to help the American people and the economy by wiping the slate clean.”
About the Project on Predatory Student Lending
Established in 2012, the Project on Predatory Student Lending represents over one million former students of predatory for-profit colleges. Its mission is to litigate to make it legally and financially impossible for federally-funded predatory schools to cheat students.
The Project has brought a wide variety of cases on behalf of former students of for-profit colleges. It has sued the federal Department of Education for its failures to meet its legal obligation to police this industry and stop the perpetration and collection of fraudulent student loan debt.