In a letter addressed to President Joe Biden, Wisdom Cole, the National Director of Youth and College at the NAACP, and Derrick Johnson, the President of the organization, expressed their disappointment with the administration’s decision to restart federal student loan payments later this year. They argued that this move is a setback for Black Americans and fails to address the racial wealth gap. The letter was reported by NBC News.
During the pandemic, student loan payments were put on hold, a policy that began under the presidency of Donald Trump and was extended multiple times by Biden. However, the debt ceiling deal reached between Biden and House Speaker Kevin McCarthy prohibits further extensions or the suspension of interest on student loan payments.
The White House has confirmed that interest will resume on September 1st, with payments due a month later. Despite the debt deal, Biden’s student loan forgiveness plan remains unaffected.
The NAACP letter emphasized the disproportionate impact on Black borrowers, who face a higher chance of default. Cole and Johnson acknowledged the efforts made during the debt ceiling negotiations but expressed disappointment that the needs of Black communities were not adequately addressed.
Abdullah Hasan, a spokesperson for the White House, responded to the letter, stating that the administration had already announced the end of the student loan payment pause in August. Hasan emphasized that the bipartisan budget agreement did not alter this plan and acknowledged the president’s understanding of the burden that student debt places on millions of Black Americans.
Last summer, Biden unveiled a relief plan that proposed forgiving up to $20,000 in debt for student borrowers with incomes below $125,000. The plan was implemented under the authority granted during the COVID-19 national emergency. However, Republicans filed a lawsuit to block the plan, and it is currently under review by the Supreme Court.
If the Supreme Court fails to uphold student debt relief, Cole and Johnson urge the Biden administration to pursue all legal options to find a permanent solution. They emphasize the importance of respecting the contributions of student loan borrowers, making higher education more accessible and affordable, and ending the cycle of pushing Black borrowers into poverty.
During oral arguments in February, the conservative justices of the Supreme Court signaled their inclination to overturn the relief plan, which would impact over 40 million Americans. A decision from the Supreme Court is expected by the end of the month.
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