III 

116TH CONGRESS 

2D SESSION S. RES. 711 

Calling on the President of the United States to take executive action to 

broadly cancel Federal student loan debt. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 22, 2020 

Mr. SCHUMER (for himself, Ms. WARREN, Mr. BROWN, Mr. DURBIN, Mr. 

SANDERS, Ms. DUCKWORTH, Mr. BLUMENTHAL, Mr. VAN HOLLEN, Mr. 

MERKLEY, Mr. MARKEY, Mr. BOOKER, Mr. MENENDEZ, and Mr. 

WYDEN) submitted the following resolution; which was referred to the 

Committee on Health, Education, Labor, and Pensions 

RESOLUTION 

Calling on the President of the United States to take 

executive action to broadly cancel Federal student loan debt. 

Whereas the United States is facing historic public health 

and economic crises caused by the coronavirus (COVID– 

19) pandemic that threatens the financial well-being of 

nearly every American family; 

Whereas even before the COVID–19 pandemic, the United 

States also faced a historic student loan crisis, which is 

currently holding back our struggling economy and restricting opportunity and prosperity for millions of American families; 

Whereas nearly 43,000,000 Americans currently hold more 

than $1,500,000,000,000 in Federal student loan debt; 


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•SRES 711 IS 

Whereas more than 9,000,000 Federal student loan borrowers are currently in default on those Federal student 

loans; 

Whereas the COVID–19 economic recession and historic unemployment have compounded stagnant wages, labor 

market discrimination, and rising costs of living, making 

it nearly impossible for many Americans to ever fully 

repay their student loans; 

Whereas this historic student debt crisis has left millions of 

Americans less prepared to weather the recession triggered by the COVID–19 pandemic as communities of 

color, which never fully recovered from the devastating 

effects of the previous economic recession, have been hit 

hardest by the devastating health and economic consequences of the COVID–19 pandemic; 

Whereas student debt disproportionately impacts borrowers 

of color, who face the worst effects of the student debt 

crisis, with— 

(1) Black students, due to ongoing structural barriers that have resulted in persistent racial inequities in 

incomes and wealth, forced to accrue more student debt 

and more often than their White peers; 

(2) Black student borrowers struggling more in student loan repayment, including defaulting at higher rates 

than their White peers; 

(3) nearly half of Black graduates owing more on 

their undergraduate student loans 4 years after graduation than they did when they received their degree; 

(4) the median Black student borrower owing 95 

percent of their debt 20 years after starting college, while 

the median White student borrower owing 6 percent of 

their debt after such period; and 


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(5) Latinx student borrowers, who borrow at rates 

similar to their White peers despite having lower household incomes and significantly less household wealth, are 

more likely than their White peers to default on their student loans; 

Whereas Black students and other students who have attended Historically Black Colleges and Universities have 

had to bear a larger share of student loan debt because 

of the historic and continued underfunding of these institutions at the State and Federal levels; 

Whereas student debt cancellation for the families that need 

it most can substantially increase Black and Latinx 

household wealth and help close racial wealth gaps; 

Whereas women hold more than two-thirds of the Nation’s 

student loan debt and must borrow an average of $3,000 

more than men to attend higher education; 

Whereas, if left unaddressed, the student debt crisis will 

worsen inequality, exacerbate the current recession, widen 

the racial wealth gap, and slow economic recovery; 

Whereas broad student debt cancellation is the most efficient 

and effective solution to our student debt crisis, would 

help millions of families, and would remove a significant 

drag holding back our economy; 

Whereas broad student debt cancellation would provide immediate relief to millions of American families who are 

struggling during this pandemic and recession, and prevent them from having an unsustainable student debt 

burden waiting for them once this pandemic is over; 

Whereas broad student debt cancellation would provide a 

boost to our struggling economy through a consumerdriven economic stimulus, greater home-buying rates and 


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•SRES 711 IS 

housing stability, expanded access to more affordable financial products including car loans and mortgages, 

higher college completion rates, and greater small business formation; 

Whereas President Donald J. Trump’s Memorandum on Continued Student Loan Payment Relief During the 

COVID–19 Pandemic, issued August 8, 2020, will expire 

on December 31, 2020, causing tens of millions of Federal student loan borrowers to enter repayment on New 

Year’s Day of 2021, including recent graduates facing 

one of the toughest job markets in recent history; 

Whereas more than 100 community, civil rights, consumer, 

and student advocacy organizations have urged student 

debt cancellation for all borrowers in response to the 

COVID–19 pandemic public health and economic crises; 

Whereas Congress has already granted the Secretary of Education the legal authority to broadly cancel student debt 

under section 432(a) of the Higher Education Act of 

1965 (20 U.S.C. 1082(a)), which grants the Secretary 

the authority to modify, ‘‘. . . compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption’’; 

Whereas the United States Department of Education has reportedly used this authority to implement relief for Federal student loan borrowers during the COVID–19 pandemic; and 

Whereas, on June 29, 2020, President Donald J. Trump, 

with the support of Secretary of Education Betsy DeVos, 

vetoed H.J. Res. 76 ‘‘Providing for congressional disapproval under chapter 8 of title 5, United States Code, 

of the rule submitted by the Department of Education reVerDate Sep 11 2014 02:12 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6300 E:\BILLS\SR711.IS SR711

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lating to ‘Borrower Defense Institutional Accountability’ ’’, blocking a resolution that passed Congress with 

bipartisan support to overturn a Department of Education rule that makes it harder for defrauded Federal 

student loan borrowers to see their loans discharged: 

Now, therefore, be it 

1 Resolved, That the Senate— 

2 (1) recognizes the Secretary of Education’s 

3 broad administrative authority to cancel Federal stu4 dent loan debt under the existing authorities of sec5 tion 432(a) of the Higher Education Act of 1965 

6 (20 U.S.C. 1082(a)); 

7 (2) calls on the President of the United States 

8 to take executive action to broadly cancel up to 

9 $50,000 in Federal student loan debt for Federal 

10 student loan borrowers administratively using exist11 ing legal authorities under such section 432(a), and 

12 any other authorities available under the law; 

13 (3) encourages the President of the United 

14 States, in taking such executive action, to use the 

15 executive’s authority under the Internal Revenue 

16 Code of 1986 to ensure no tax liability for Federal 

17 student loan borrowers resulting from administrative 

18 debt cancellation; 

19 (4) encourages the President of the United 

20 States, in taking such executive action, to ensure 

21 that administrative debt cancellation helps close raVerDate Sep 11 2014 01:46 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\SR711.IS SR711

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1 cial wealth gaps and avoids the bulk of Federal stu2 dent debt cancellation benefits accruing to the 

3 wealthiest borrowers; and 

4 (5) encourages the President of the United 

5 States to continue to pause student loan payments 

6 and interest accumulation for Federal student loan 

7 borrowers for the entire duration of the COVID–19 

8 pandemic. 

Æ 


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