‘What Type Of Borrowers Will Benefit The Most?’: Jayapal Asks Cardona About Student Debt Relief

7 months ago

At a House Education Committee hearing last week, Rep. Pramila Jayapal (D-WA) questioned Sec. Miguel Cardona about student loan forgiveness.

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Transcript

00:00 Thank you, Mr. Chairman.

00:03 Welcome, Secretary Cardona, and thank you for your dedication to our students throughout your life and here in this position.

00:09 Since taking office, the Biden administration has worked to erase the burden of student debt.

00:15 This includes canceling debt for 876,000 people,

00:20 including teachers and firefighters, through the Public Service Loan Forgiveness Program.

00:25 It includes canceling debt for almost a million people through improving income driven repayment.

00:33 And 1.6 million of defrauded students.

00:37 And just last week, students who were scammed by the now defunct Art Institute of Seattle,

00:42 who I had met with in my district, finally saw relief after more than a decade.

00:47 While the previous administration made the process so unworkable that Congress rebuked it on a bipartisan basis.

00:55 Together, these steps have canceled $160 billion for 4.6 million borrowers.

01:01 And my understanding is that another 20 to 25 million students will be eligible through programs that you recently announced.

01:09 This is financial breathing room for students and families who were just trying to get a higher education,

01:15 improve their skills so they could contribute to our communities, our economy, and our country.

01:20 All borrowers turn to loans as a step toward economic prosperity, but

01:24 student debt makes it so impossible for many.

01:27 And I think it's important that we remember that more than 80% of borrowers report

01:33 that it holds them back from being able to become homeowners, something you were talking about just in a previous answer.

01:39 Additionally, 56% of borrowers have to choose between repaying and affording rent and groceries.

01:46 Rent and groceries.

01:47 No one should be stuck with these kinds of payments that they can't afford.

01:51 >> Secretary Cardona, your department released its first of two proposed rules to provide additional student debt relief.

01:58 What type of borrowers will benefit the most?

02:02 And how will this improve their financial well being?

02:06 >> Well, thank you for that.

02:07 The borrowers that would benefit most are those who have had runaway interest.

02:13 And I mentioned a teacher who had $30,000 just in interest.

02:18 That prevented her from being able to even attack the principle of the loan.

02:22 So that's one.

02:22 I mentioned public servants.

02:26 You talked about teachers and firefighters.

02:28 Bipartisan bill.

02:29 We want to make sure that you don't have to jump through hoops to apply for that.

02:33 If you work for ten years in public service, if you've paid your loans, it should be automatically discharged.

02:39 We have a teacher shortage.

02:40 We have a nurse shortage.

02:41 And we wonder why.

02:43 So we're trying to make it simpler to have access to a bipartisan bill that was passed in 2007.

02:48 >> Thank you.

02:49 Textbooks have been an enormous strain on students' finances.

02:52 They can cost up to $1,200 annually.

02:56 And textbook costs are on track to double every 11 years.

03:00 Students can save by buying used books or renting or borrowing from their library.

03:05 But some institutions actually automatically bill students for their books.

03:12 What is your department doing to prevent students from spending more than needed on their books or

03:16 on other hidden fees that are really preventing students from

03:21 accessing the kinds of supports they need for a quality education?

03:25 >> Well, thank you for that question.

03:26 As you know, this is in negotiated rulemaking, so I really can't comment on specifically where we think we're going to end up.

03:34 But we are taking a very close look at what students are paying for.

03:37 I'll have two in college next year, and I recognize the different fees and what they add up to.

03:42 And we want to make sure that our students are, the information is transparent and

03:47 they're getting what they're paying for, and it's not something that's assumed that they're going to need.

03:53 >> Thank you.

03:54 I want to discuss federal K-12 education funding for children experiencing homelessness.

03:59 Your department's 2023 guidance for American Rescue Plan homeless youth funding

04:04 has really been an incredible lifeline for those families.

04:08 For example, it helps schools provide gas cards and

04:11 cover car repairs in an emergency to increase attendance.

04:16 And I know that these funds are expiring soon.

04:19 What supports does the department have in place for families experiencing homelessness, including for after these funds expire?

04:27 >> Sure, thank you.

04:27 And you identified an issue that is increasing in our country, homelessness.

04:32 And making sure that our students are protected and are able to learn and the conditions for learning are right.

04:37 We're requesting a $129 million budget request for FY 25.

04:42 Programs like preschool programs, supplemental instructions for students that fall behind because of the trauma of being housing insecure.

04:49 Before and after school programs, transportation.

04:51 As a school principal, let me tell you, that was the most expensive thing.

04:55 Making sure the student doesn't have to bounce five, six different schools under the McKinney-Vento Act

05:01 to have a solid, consistent education, so transportation and then healthcare referrals is also something that is required.

05:07 >> Thank you, Mr. Secretary.

05:08 Mr. Chairman, I ask for unanimous consent to enter into the record this report from Schoolhouse Connection,

05:15 called Overlooked and Almost Out of Time, as well as an article called

05:21 Grocery Cards and Car Repairs, How COVID Aid Changed the Way Schools Can Help Homeless Kids.

05:26 >> No objection.

05:27 >> I yield back.

05:28 Thank you very much.

‘What Type Of Borrowers Will Benefit The Most?’: Jayapal Asks Cardona About Student Debt Relief

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