As of right now, President Joseph Biden is still planning to turn on federal student debt payments on September 1st, 2022. The payment pause was originally initiated by former President Donald Trump in March 2020.
About 43 million student loan borrowers, mired in more than $1.6 trillion in debt, are still waiting on Biden’s promise to cancel student debt.
That’s why the Debt Collective is organizing a debt strike – withholding payments for money they say borrows should have never had to borrow in the first place.
“As prices reach record highs and wages fall to record lows, turning on student loan payments is nothing but a cruel blow to working people, struggling to make ends meet,” the Collective recently told its supporters. “Millions will not be able to pay, and may risk falling into default. We can’t pay – and we won’t pay.”
“Debt strikes are not a joke and we don’t broach calls to go on debt strike lightly,” the organization said. “For many people, there are safe ways to get to $0 monthly payments, therefore refusing to pay into an unjust system.”
They are holding a Debt Strike Info Session on Tuesday, July 26th at 7:30 pm to discuss options for safely striking and to discuss options.
The Debt Collective, based in Canton, St. Lawrence County, NY, is a debtors’ union fighting to cancel student debts for millions of households. You can follow them on Twitter, Facebook, and Instagram.
I’m very curious at your use of the phrase “had to borrow”. To me, that almost smacks of abdicating personal responsibility – one chooses to borrow, one is not forced. We make choices throughout our lives and (one assumes) weigh the factors involved before doing so. I know times have changed, but it’s challenging for me to accept this logic, having used (very) modest Regents Scholarship dollars, the GI Bill and regular part-time work to accomplish three degrees (Associate, Bachelor and Master) without incurring debt.
Hi John,
Dramatically increased college costs, increased enrollment, changes to the lending system (especially increased interest rates for student loans and the creation of Student Loan Asset Backed Securities), increased costs of living, reduction of support for higher education, and the labor market demand for credentials with almost nonexistent wage growth are all contributing factors to why your experience was so different than that of younger generations. For example, I was a recipient of the GI Bill, but between the time I joined the military (in order to attend college) and the time of my separation the costs of college skyrocketed to make the military benefit practicality worthless.
For a variety of reasons, (taking care of an elderly parent for example) not everyone has the ability to take on a part-time job – which at any rate, won’t cover even basic living expenses, let alone college tuition. According to a 2018 Brookings Institution study “nearly 40 percent of students who took out loans in 2004 may default by 2023.”
It might be informative to read some of the experiences of student loan borrowers here. They are enlightening.
Thanks for your comment and thanks for reading the New York Almanack.
John Warren
Founder & Editor