Why should we care?

On July 29, 2021, Democratic Senator Troy Carter from Louisiana introduced Bill 4797 which would discharge certain federal student loan debt. This bill specifically requires the Department of Education (ED) to automatically discharge up to $50,000 of outstanding student loan debt. This bill also specifies that the loan discharge would be excluded from taxable income and that Members of Congress would not be eligible to receive loan discharges. It will also allow individuals will be placed on administrative forbearance up to one year to allow ED the time to process the discharge of the student loans. Before this bill, there have been similar bills such as H. R 4797 Student Debt Relief Act of 2019, which failed to become a law. 

This house bill is important to address a huge overpowered national debt crisis within the United States. I completely support H. R 4797 as it will promote and stimulate the economy. Currently, there is $1.7 trillion in student loan debt. The majority of student loan debt is held by minority individuals specifically African Americans. The majority of student loan debt is also held by women, who have historically suffered due to the gender age gap.  In addition, many older individuals outnumber younger people with student debt although they owe three times less than the younger borrower. This bill will promote and stimulate the economy by allowing people to have greater purchasing power. This purchasing power can lead to homeownership and entrepreneurs of small businesses. It will also allow people to spend additional money on community goods and services which will in return stimulate the economy. Addressing the inequalities of student debt is essential for increasing social and economic justice in the United States. Its time to make a change, so student loan borrowers are not forgotten!