Attorney General Bonta Applauds President Biden’s Decision to Cancel Up to $10,000 in Student Loan Debt for Eligible Borrowers

OAKLAND – California Attorney General Rob Bonta today issued the following statement on President Biden’s announcement that the U.S. Department of Education will cancel $10,000 in federal student loan debt for borrowers making less than $125,000 a year, and an additional $10,000 of debt for borrowers who received Pell Grants in college. President Biden today also extended the moratorium on student loan debt payments until December 31, 2022.

“Today’s decision is a game changer for millions of Americans who took out federal loans to pursue their higher education dreams,” said Attorney General Bonta. “As a student borrower myself, I remember what it was like to get that monthly payment reminder and to feel the crushing weight of writing out a three- or even four-digit check each month. And beyond the stress on household budgets, the trillion dollar student loan debt crisis is a burden on our economy. The moratorium on student loan payments has been a much-needed reprieve, and we need it to continue. Even with this announcement, many borrowers, particularly people of color, will remain saddled with tens of thousands of dollars in student loan debt. The work is not done: We need a top-to-bottom overhaul of our student loan system. But today’s announcement is an important step in the right direction. I applaud President Biden and the Department of Education for continuing to make important strides here, as well as with its work to forgive debt for borrowers defrauded by for-profit colleges and to improve access to the public service loan forgiveness program. As Attorney General, I will continue to work with my federal partners to make progress in addressing the student loan crisis.”

More information on today’s announcement is available here.