WASHINGTON–U.S. Senator Chris Murphy (D-Conn.), a member of the U.S. Senate Health, Education, Labor, and Pensions Committee, on Tuesday spoke at a press conference in Hartford to highlight the impact of the Biden administration’s decision to cancel $10,000 in federal student loan debt for borrowers making less than $125,000 a year (or households earning $250,000 or less a year) and up to $20,000 for recipients of Pell Grants, extend the pause on federal student loan payments through the end of 2022, and establish a new income-driven repayment plan for federal loan borrowers.
Murphy highlighted the impact of President Biden’s decision on Connecticut: “[T]his reform – forgiving debt, but also reducing the monthly payments – it's a really big deal for Connecticut. It's going to convince a lot of younger people to stay in our state and work here. And it's going to convince a lot of young workers to come to Connecticut, because we have it all. We have so many things going for us as a state, and when we can reduce the cost of living just a little bit, well that makes all of Connecticut’s other advantages shine even more brightly.”
“I just finished up doing a business walk on Pratt Street in Hartford. There’s new businesses, new retail establishments, new restaurants coming back to downtown Hartford. Now all of a sudden, there's going to be hundreds of thousands of nurses and teachers that are going to be able to bring a little bit of extra money into the retail and consumer economy,” Murphy continued.
Murphy also called for greater federal accountability of higher education: “I'm an accountability hawk when it comes to higher education. I've introduced several pieces of legislation to dramatically reform the federal government's relationship with colleges. I don't think we should be giving federal aid to schools that are scamming kids. I don't think we should be giving aid to schools where only a small percentage are graduating. I think we should expect performance from colleges. We should expect colleges to get students to completion. We should expect colleges to get students and graduates into jobs that pay enough to be able to pay back their loans.”
A full transcript of his remarks can be found below:
“Listen, student debt is absolutely crippling to Americans generally, but to people here in Connecticut specifically.
“Why does President Biden's action matter so much to us here in Connecticut? Well, I'll tell you why. It's expensive as a young person to decide to start your life in Connecticut. Housing costs a little bit more. The cost of living is a little bit higher. Quality of life is better here, healthcare outcomes are better in Connecticut, educational outcomes are better in Connecticut. But costs are a little bit higher.
“And so for a lot of young people who are thinking of moving to Connecticut, or who are thinking of staying in Connecticut, paying $1,000 less a month in student loan costs might be the difference between being here in this state or moving somewhere else.
“So this reform – forgiving debt, but also reducing the monthly payments – it's a really big deal for Connecticut. It's going to convince a lot of younger people to stay in our state and work here. And it's going to convince a lot of young workers to come to Connecticut, because we have it all. We have so many things going for us as a state, and when we can reduce the cost of living just a little bit, well that makes all of Connecticut’s other advantages shine even more brightly.
“Every year, there's a reporter in Washington that writes about the members of Congress that still have student loan debt. I'm still on that list. I have private loans, not public loans. But both my wife and I put ourselves through graduate school and have been paying back the loans. Now, we can afford to pay back those loans. We’re at the end of their term.
“But 400,000 people in the state benefiting from President Biden's proposal, that's serious. That’s money that is going to allow families to stay in Connecticut, invest in Connecticut. That's going to be money that goes straight back into the Connecticut economy.
“I just finished up doing a business walk on Pratt Street in Hartford. There’s new businesses, new retail establishments, new restaurants coming back to downtown Hartford. Now all of a sudden, there's going to be hundreds of thousands of nurses and teachers that are going to be able to bring a little bit of extra money into the retail and consumer economy.
“And as Dick mentioned, while the headline has been the forgiveness of debt – that's a big deal: $10,000 up to $20,000 in Pell Grants – the changes to the existing repayment structure are just as significant.
“What Biden's proposal means is that nobody who has a federal student loan is going to pay more than 5% of their discretionary income to student loan payments. But the way that discretionary income is defined effectively means that anybody making less than $30,000 in this country won't be paying any in student loans if you have a federal student loan. There are still starting salaries here in Connecticut that are easily getting below $30,000.
“So this is a big deal, and I'll end here before turning it over… I agree with Dick that this is just the first step. I'm an accountability hawk when it comes to higher education. I've introduced several pieces of legislation to dramatically reform the federal government's relationship with colleges. I don't think we should be giving federal aid to schools that are scamming kids. I don't think we should be giving aid to schools where only a small percentage are graduating.
“I think we should expect performance from colleges. We should expect colleges to get students to completion. We should expect colleges to get students and graduates into jobs that pay enough to be able to pay back their loans.
“So I think we've got to get serious when it comes to accountability in higher education. But the first step is to just make sure that the cost of education isn't bankrupting people and workers in this country. This is a really important step forward. So, again, a big thanks to President Biden for seeing this through.
“I would argue the impact of this loan forgiveness and payment reduction plan is going to be bigger in Connecticut, then maybe anywhere else in the nation. We have a bigger share of our citizens with college degrees, and we have a slightly higher cost of living, so this relief goes a longer way in a state like Connecticut. A really big deal for the state of Connecticut.”
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