Democratic Lawmakers: Coronavirus Relief Should Cancel Student Debt, Help MSIs, And Double Pell

Congress is contemplating the next round of coronavirus relief and stimulus and many think students and student borrowers should have a seat at the table. Last week, Congresswoman Alma Adams (D-NC) and 40 other Democratic members of the House of Representatives outlined eight requests for higher education in a letter to Congressional leadership.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act included relief money for colleges and universities, emergency grants for students, and a suspension of federally-held student loan payments through September. But many believe it didn’t do enough for institutions, students, or borrowers.

Citing their importance, these lawmakers called on Congress to provide additional relief for Minority-Serving Institutions (MSIs), like Historically Black Colleges and Universities (HBCUs), Hispanic-Serving Institutions (HSIs), and Tribal Colleges and Universities (TCUs). Six of the eight requests centered on MSIs and included requests for additional funding for broadband, research and development at the institutions, and more.

The Democratic lawmakers also requested $10 billion in infrastructure funding for the institutions. And, building off the CARES Act, they called for an additional $1 billion in emergency funding for the historically under-funded institutions to shield them from the effects of the coronavirus.

In the letter, the House members also called for doubling the maximum Pell Grant, the federal grant that helps low- and moderate-income students pay for college. Citing the dwindling purchasing power of the Pell Grant, they said that, “doubling the maximum Pell Grant award would boost college enrollment, reduce drop-out rates, and improve student outcomes for students who rely on the program to receive a postsecondary degree.”

Lastly, citing racial disparities in student loan outcomes, the lawmakers called for cancelling up to at least $20,000 in student debt. Some have previously proposed $10,000 and $30,000 in debt forgiveness as relief from the coronavirus and this proposal falls in the middle. They also said that in the next package of relief Congress must include all federal loans, including the commercially-held Federal Family Education Loans and institutionally-held Perkins loans that were left out of the CARES Act.