WASHINGTON, D.C. — U.S. Senator Alex Padilla (D-Calif.) released the following statement after President Biden announced his plan to provide historic relief to borrowers across the country by forgiving up to $10,000 in federal student debt for Americans who earn less than $125,000 a year and $20,000 for Pell grant recipients, as well as extending the federal moratorium on student loan debt payments through December 31^st: 

“I applaud President Biden’s historic decision to forgive thousands of dollars in student loan debt, target much needed support to low-income students and graduates, and extend the pause on payments.  For too long, students have shouldered overwhelming student loan debt just to get a fighting chance at the American Dream. Facing tens of thousands of dollars in debt, millions of young Americans spend decades under the weight of significant loan payments—or worse, the devastation of default. But today, hardworking Americans won.

“First-generation students and communities of color will now be able to better save for their future and build wealth. Young families will have more flexibility to pay for essentials like childcare, rent, transportation, and food. And tens of millions of Americans will be able to put more of their hard-earned paychecks back into the economy—benefiting everyone.”

Californians owe nearly $142 billion in student debt, with Black and Latino residents facing the highest rates of default and delinquency. Senator Padilla has been a consistent advocate for students and student borrowers and has urged the President to extend the student loan payment pause and provide meaningful student debt cancellation. Padilla cosponsored a resolution calling on President Biden to use his authority under the Higher Education Act to cancel up to $50,000 in student loan debt for federal student loan borrowers. Padilla also cosponsored the College for All Act to make college tuition-free and debt-free for working families, and he introduced the Basic Assistance for Students in College (BASIC) Act to ensure college students are able to meet their basic needs while pursuing their education.