FOR IMMEDIATE RELEASE
May 28, 2023
Contact: Emma Bittner
(972) 510-3395 | Emma.Bittner@younginvincibles.org
Debt Ceiling Negotiations Compromise Borrowers and Young Adults
(Washington, DC) – After weeks of negotiations, shortly ahead of the looming deadline, President Biden and Speaker Kevin McCarthy have reached a tentative agreement to raise the debt limit for two years.
Under the agreement, the payment pause will be lifted, and borrowers will begin repaying their student loans. There is no set date for when repayment will begin, but it is anticipated to be earlier than the date later this summer that borrowers were planning for. Abruptly terminating the payment pause will be detrimental for millions of borrowers.
In the deal, Biden’s student loan forgiveness plan remains untouched as a decision from the Supreme Court is expected in the coming weeks. However, the agreement imposes work requirements to some government assistance programs, such as SNAP and Temporary Assistance for Needy Families program, including time limits for people up to age 54. The proposed requirements for these programs create significant barriers for young adults and families to receive necessary support.
The tentative agreement must still be voted on by the Senate to prevent default.
In response, Kristin McGuire, Executive Director of Young Invincibles said:
“This agreement jeopardizes the financial security and success of young adults. Legislating the end of the payment pause while simultaneously adding work requirements for government assistance programs is a regressive policy that directly threatens the well-being of young adults and their families during a vulnerable time in their lives.
Forcing borrowers to begin repayments before a clear resolution to debt cancellation is disastrous. The payment pause has been a critical lifeline for tens of millions of borrowers and their families, finally giving them the much-needed breathing room to provide basic needs like housing and food, pay down other debts, and improve credit. Forty-three million borrowers need relief, not surprise student debt bills.
While we understand that concessions have to be made, we are extremely disappointed that student borrowers are on the chopping block for this agreement.”
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Young Invincibles (YI) is a national advocacy and policy nonprofit organization focused on amplifying the voice of young people in the political process at the local, state, and federal levels. YI focuses on issues impacting young adults ages 18 to 34 in higher education, health care, economic security, and civic engagement. Our offices include Washington, D.C., California, Colorado, Illinois, New York, and Texas. For more information, please contact Emma Bittner at (972) 510-3395 or emma.bittner@younginvincibles.org